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Show A LEGAL OPINION ON DRAINAGE TAX IN A SERIES OF QUESTIONS AND ANSWERS Furnished by Counsel for Drainage District No. 3. ( Continued from last week. ) Q 4. If the percentages are raised continuously, those who will pay taxes will very soon reach the sum of $37.00 per acre with interest, and will have paid all the charges against the acres taken singly, long before the twenty year term oi the Londs will have exuired. In this case what happens? When one has paid drainage taxes, which will amount to the cost per acre, plus the interest, will further assessments cease and one be called upon to pay no more? A 4. If all tax payers would pay their taxes, $37 per acre and 6 interest, it would pay out for everything except for the maintenance charge; but where some pay and others do not, the party paying the taxes might ultimately be required to pay $60.00 per acre plus interest. This is the worst condition that could happen to a land owner, except, that in addition to this he wall always be liable for his share of the maintenance and overhead of the district. This however is not at all likely to happen, because when a tax is not paid, the land is sold to the drainage district, and the drainage district holds the certificate certifi-cate of sale. If the certificate of sale is not redeemed within four years from the first sale, a tax deed may then issue to the district or to any purchaser of the tax sale certificate, and this deed gives the grantee A FEE SIMPLE TITLE AND RIGHT OF POSSESSION (Editor's note; this is absolute ownership and possession, with absolute right to eject; the land IS the buyer's. This answers fully that argument which has been going aroud that a non tax payer could not be dispossessed.) The d'otriet .would then sell the land to the purchaser for the back taxes and'the-inte'estrthe purchaser to assume future taxes, tax-es, or could charge a higher price if a purchaser would pay more. The same thing would occur where a private individual individ-ual purchased a certificate of sale. Next December those land owners who did not pay the 1918 tax will lose their land, because be-cause a taxjjeed will issue unless they redeem them before that time. Ik the district can sell the land thus acquired, then the back taxes will come in and result in reduction of the tax rate on all lands in the district for the following years. The tax payor cannot be relieved by paying the $37 an acre and interest. That is all he ultimately would pay, and all in probability he will be required to pay plus overhead charge, but under the law he might be compelled to pay the total assessed benefits of $G0 an acre, plus interest, plus overhead charge. Q 5. Is it true that the bonds run twenty years at six per cent? A 5. The' first issue of bonds dated August 1, 1918 of $1,250,000 mature in 15 to 20 years in series. The second issue is-sue dated August 1, 1921 of $440,000 mature in 15 to 20 years in series. Q 6. Is there any provision by which one may pay in cash, the total cost per acre, discounting the interest charges and receive a full legal acquittance for all future taxes? In other words, a certificate in legal shape, which can be recorded, which will show on certain acres that the drainage tax has been paid in full and no more assessment may be made and no more payments expected? If so, what is this net price per acre which I could pay, if I wished, and forget further drainage payments? A 6. There is no provision in the Jaw under which one may pay in cash the total cost per acre, discounting interest charges, and receive full legal acquittance for all future taxes. Before the bonds were sold we sent notice to every land owner advising him that he might come in and pay his assessed benefits bene-fits of $60 per acre and be relieved of taxation, except for maintenance main-tenance and overhead charges. No one paid. I see no reason why a land owner could not now pay the $60 and be relieved of all taxes for bonds, but there is no way he could ovoid the overhead over-head and upkeep expenses as the drainage district is a municipal munic-ipal corporation, similar to a school district or city with reference refer-ence to taxation. Q 7. Am I correct in the information that the lands can not be sold for delinquent taxes, except after four years delinquency delin-quency has occurred, and when sold, that the original owner has five years in which to redeem from the amount of taxes, and is the penalty 3 and the interest charged on the delinquent delin-quent taxes so sold 12 per annum? A 7. Your information about the sale of land for delinquent delin-quent taxes and time for redemption is in error. The law is the same in this regard as it is for state and county taxes. The lands are sold each year in December for delinqeutn taxes for that year. There are four years in which redemption can be made (from that sale date). The redemptioner must pay 3 penalty and 12 per annum in order to redeem. IF HE DOES NOT REDEEM IN FOUR YEARS, A TAX DEED ISSUES to the holder of the certificate, WHICH GIVES A FEE SIMPLE TITLE TO RIGHT OF POSSESSION. ( Continued next week. ) |