| Show i EQUITY IN N INDIAN LAND IS NOT U TAXABLE Albert H. H Kneale Superintendent Does Docs cs Not Agree With Dan DI B. B Shields Former Fonner Attorney General of Utah I Assessment of ot the equity of purchasers pur- pur chasers in Indian lands in Uintah and Duchesne counties who have not I Ico co concluded their payments to the government government government gov gov- is again up for tor discussion and G. G G E. E Wilkins assessor of ot Uintah county has communicated with William Willlam Will Will- I lam iam Bailey chairman of the state board of ot equalization Uon for tor his open open- lon ion on the subject The former attorney general Dan B D B Shields in a lengthy opinion on the subject which has been assigned assigned assign assign- ed ed- to James H. H Wolf for Investigation tion held that while the Indian lands themselves in the process of oC purchase cannot be taxed since the title still sun remains with the United States government as guardian of or the Indians the equity of the purchasers In ln those lands is a thing of or value that may be taxed under the Utah laws and without violation of the rights of the United States govern govern- ment went Albert H. H Kneale superintendent of ot the Uintah and Ouray Indian agency however takes a different vIew in a lengthy letter to Assessor Wilkins Patent Essential for Ta Tax I have always represented to the thep p purchasers of or these Indian lands hat they ther are not taxable until paten paten pat- pat en en has issued writes Mr Kneale and land this is the attitude of ot the Washington office Mr Kneale then quotes from a letter letter letter let let- ter received from C. C F F. F Hauke chief clerk of the tUe office of Indian affairs department of ot the the interior in sup sup- suP suP-j Continued on Last Page i d EQUITY NOT TAXABLE I or f From Page One port of his view State officials Who l lave have lve read Mr Ir Wolfs Wolf's opinion however however however how how- ever are Inclined to think that It Is borne out at least In part by Mr Haukes Hauke's letter which says saya You are advised I that the lana lanas purchased under the deferred deterred payment payment payment pay pay- ment plan are not taxable until payment has been made and the thc lands conveyed in fee to the pur pur- chaser A sale under the deterred deferred payment payment payment pay pay- ment plan is more In the nature of an executory contract to be completed completed completed com com- when final payment is made and a failure to abide by the contract contra t makes the same subject to cancellation cancellation cancellation cancella cancella- tion and the lands remain In their original status The government has nothing todo to todo do with the taxation of any intangible ble blo rights which the state of at Utah I I considers its citizens may have but as Os a fact land to which the United 1 States holds fee feES title is not taxable If rights rights- In the last paragraph of the letter it is pointed out by state officials is to be construed construed construed con con- to mean the equity or prior i right to complete the purchase which payment plan has with the government government government govern govern- ment ment that paragraph exactly Dears bears out what Mr Wolfe said in his opinion opinion opinion ion when discussing this issue Mr Kneale goes into some detail as to the sales plan of the government government government govern govern- ment covering these Indian lands and the conditions under which the deal is canceled and continues Claims State Is in Error I have always maintained that the state is in error when it endeavors ors to tax an alleged equity in these lands thus sold under this deferred payment plan for it is endeavoring to collect a tax that cannot be col col- In illustration of or my point will cite an instance A piece of land is s sold under this plan to a nonresident nonresident nonresident non non- resident he makes his initial payment payment payment pay pay- ment of 10 per cent also his 15 percent per percent percent cent payment after arter which he receives re receives receives re- re the governments government's memorandum memorandum memorandum dum of ot sale he meets his first note also his second note In the meantime the count county has levied a tax for tor three successive e years wh which c t tax ax has not been collected Everything Everything Everything Every Every- thing in n excess excess of the original 25 26 per percent percent paid cent cent paid In b by the tho prospective purchaser purchaser pur pur- purchaser chaser Is refunded to him by this office of ot- fice flee and the original 25 per cent payment is turned over oyer t to the In In- In dian The moneys are all disbursed ed the title to the land remains where here it was originally the prospective prospective tive purchaser is a resident non-resident ana possesses no taxable property within the boundaries of the state of Utah and there Is an unpaid tax un cot cot- remaining on the county rec rec- Mr Bailey has not yet replied to Mr Wilkins Wilkins' query and Is holding the tho question question- under advisement He point pointed ed out that there Is no tax levied onan on onan onan an equity in fn a homestead from the government On the other hand the purchaser of or state lands finds that his equity is taxable even while theland the theland land title remains with the state The slate board following the opinion opinion ion of the attorney general has for forthe forthe forthe the last two years attempted to tol toas assess assess assess as as- as- as sess the equity of or the purchaser of or Indian lands If the argument argument that In a n. hypothetical hypothetical hypo hypo- case the tax assessed might prove un collectable were followed to its logical conclusion considerable taxes now c collected might never be levied |
