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Show A LEGAL OPINION ON DRAINAGE TAX IN A SERIES OF QUESTIONS Hi ANSWERS Furnished by Counsel for Drainage District No. 3. Q. 8. Can you send me a pamphlet containing the law and the ruies and regulations on Drainage District No. 3, and a printed list of the assessed benefit roll on all the landholders within that district? A. 8. If a pamphlet containing the drainage law is available I will send you one. I will send you at once a copy of the printed Benefit Assessment Roll, containing the assessed benefits on all landowners within the district. The drainage law with reference to sale and redemption follows the law with ' reference to state and county taxes In all details, and there is a provision in the drainage law to that effect. Q. 9. This assessed benefit I do not understand what this la. I was told that It was the amount of money which the lands were supposed to be worth, more thaii their present value, val-ue, by reason of the added value of the drainage thereto. I do not understand how, If the drainage only costs $37 an acre, the assessed benefit can be figured at $60 an acre. A. 9. The assessed benefit The definition as you give it is a fair definition, although it does not perhaps express the ideas completely. By assessed benefits is included the following follow-ing elements: increased value by reason of drainage, increase by reason of the vaule of improved sanitary or health conditions condi-tions by reason of drainage, increased value by reason of increased in-creased productivity or fertility. In fact, it includes any element ele-ment which flows from the removing from the soil of mineral and water; but it Is not always confined to the above matters. For instance, the railroad right of way is assessed for benefit and taxes. The railroad objected on the ground that they did not desire to cultivate the land, but the court says it is a benefit to remove minerals from the right of way, as it tends to preserve pre-serve the track and ties; It makes the railroad right of way more sanitary, and It benefits the railroad because of increased tonnage and traffic that the railroad would receive by having a prosperous community developed by reclaiming the locality through which the railroad passes by reason of drainage. But getting back to the benefit to farm lands; You more nearly express the understanding, when you say it is the value added to the land by reason of the drainage. You must distinguish clearly between the cost of drainage, and benefits by reason of drainage. In a system of drainage placed on land that was a failure and did not drain the land, there would be no benefit, but the cost would be there just the same. . If at the time the petition creating the district is considered, the Board of County Commissioners had found that the cost of drainage exceeded the benefits, they would have dismissed the petition at least that would have been their duty. They found, however, that " the benefits were approximately twice the estimated costs of construction. Q. 10. If it should so happen that the taxes should not be paid sufficient to meet the interest o nthe bonds, I assume the bond holder can foreclose; but how much notice will they have to give? And how many years are provided by law, after the delinquency occurs and the interest is not paid, before the bondholders can start foreclosure proceedings? How would the foreclosure affect the lands on which drainage taxes had been paid to date? Would they be included includ-ed in the foreclosure, or would they be excluded, and how would this be acocmplished? A. 10. If sufficient taxes are not collected to pay the interest on the bonds, of course there will be a default, but there can be no foreclosure. As you understand, the foreclosure of the mortgage, the bondholder is in the same position that a bondholder of the bonds of the City of Denver is. He can simply sim-ply compel by mandamus the levy of additional taxes on the lands by the proper . officers so as to raise a fund which the Treasurer of the district must ultimately pay to the holder of the bonds. The bond holders could not begin foreclosure at all. They could simply insist upon a higher tax levy than had heretofore been levied, and if when a tax levy up to $60 an acre plus interest has been levied, the bondholder must look to a fund created from this levy, and if this is not sufficient to pay the bond, the bondholder loses the balance. The land hollder who had paid his regular levies would not be affected. We have had a long road to travel to get the law in as good shape as it is now. It was never the desire to make .a law that would make a bond issue a blanket lien over every man's land for the full amount of the bonds; and it never was entirely satisfactory to place it entirely upon the basis of a special improvement tax, because this would make all bonds quite unsaleable. The effort has been to get a law somewhat elastic, so as to allow an. increased rate In the early years of the district on land3 that are paying to take care of delinquencies delinquen-cies for a few years, to be made up later by redemption of taxes. As you say, it works a hardship on those who pay their taxes promptly, but a saleable bond could not be got otherwise. It is not a blanket mortgage on your land. It Is limited to $60 an acre, plus interest and overhead expense. Editor's Note: We shall be glad to receive any written writ-ten query asking for Information of a general nature, which we will submit to counsel for either of the four districts, the reply-to reply-to be published in these columns. Our pages are open to any one on a helpful discussion of any matter of public concern. This concludes the ser'es of quest'ons and answers In regard re-gard to drainage taxes, and what is the result when they arc not paid. It is very plainly shown, that after the due legal period provided by law has elapsed, the property IS SOLD IS REALLY REAL-LY SOLD, and that sale Is a boda-fide sale, absolutely giving legal title, with right of possession to the buyer, who may ther. eject the non-payer of his tax. Just one little after thought In the Fillmore paper is the hint that the school board may close the schools In those parts where taxes are unpaid, but continue con-tinue schools where taxes are paid. That seems just. One Is entiled to a benefit paid for, and the other is not. j |