Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-07-23
BOARD OF EQUALIZATION.

OFFICE OF COUNTY Attorney,
RAMSEY COUNTY,
ST. PAUL, July IL, 1878.
To the Honorable J. l. Beaumont, assessor of
Ramsey county.
DEAR SIR: Your letter of the 18th inst, con-
veying to me resolution of the honorable
board of equalization of Ramsey county, which
resolution is in the following words to-wit:
''Hesol1ed, That the assessor be instructed to
take legal advice as 20 the liability of parties
holding certificates of tax purchases, and also
certificates of purchase for city improvement
assessments, to pay taxes upon amounts IL
vested in said certificates, and if SO, to place
said amounts upon the assessment rolls for the
year 1885, is received.
The inquiry involves two questions:
First. Are the county and city certificates
above referred to taxable at all?
Second. If taxable, how, and in whose
hands! Our constitution provides, article .,
section 8, as follows: Laws shall be passed
taxing all moneys, credits, investments IN
bonds, stocks, joint-stock com panies, or other
wise, and also all real and personal property,
according to its true value in money!"
The steps and proceedings preliminary to the
issuance of the city and county certificates are
for all the purposes of this inquiry. substan-
TALLY the same. In both cases judgment is
| entered and the property sold Hereunder, the
city issuing mere certificate to the pur, haser,
which the law itself makes assignable by mere
| endorsement, and which entities the purchaser
| to deed on the happening Of certain events.
and the performance of certain conditions. In
the case Of the coun sales. the certificate is
all the deed necessary, and vests the title in the
purchaser after the period OF redemption ex-
pires.
Now, if these certificates give the purchasers at
the tax or assessment sales, an absolute interest
| in the land except perhaps as a lien thereon,
| they certainly could not be taxable as an in
vestmenu, as the term is used in the constltu-
| ton. If they are in fact an absolute interest
in lands, or more properly represent an abso-
| lutte interest in lands, they could not be taxed
as certificates, the land itself being taxed.
can find no authorities bearing exactly upon
this point; and can think of many and forcible
arguments that could be adduced to support
either branch of the proposition.
1t has been decided by his honor, Judge Brill.
and no doubt tits the law, in the case of Calvin
| 3. Uline, county treasurer, against James X.
! Humphrey, that, as Tar as residents are con-
cerned, mortgage debt is liable to taxation
| a though the land upon which the mortgage
debt is secured, is also taxed to its full value
Now, our supreme courts have repeatedly
held, see Wilson against Bell, seventeen
Minnesota reports, page slxty-seven
that, / qnote the exact language
purchases Mt orr foreclosure sale.
''dn not pass the title till the expiration of tn,
'time Of redemption; till then the mortgago
retains possession, and against the purchas
ser is yet owner of the fee the former having
"a vested right to nothing but his money anc
interest.
it seems to me that that is Just what tn,
purchaser at the tax-sale gets, because his RICH
IL liable to be defeated by the redemption.
This question is not free from doubt, but
think that it is the duty of purely ministerial
officer like yourself, to give the county the ben
eft OF the doubt in all cases, and let the courts
which are always open to redress any unjus
RI. do Al,o$
1t IS true that your assessment books nav.
been returned to the county auditor, the time
having expired for you to hold them under tn
law. However, section forty-three Of tax-law
of 1878, regulates your action in such cases
and confers upon you the power to correc
your returns.
AS to the second inquiry
In whose hands taxable?
1t is we'll settled in this State, since the de
clslon OF the supreme court in tn
case of city of Saint Paul agains
David Merritt, Minnesota R. 25s
and in fact it is the law generally Throughout
the United states, that the money and credit
!; of nonresident cannot be taxed, without tn
J same are especially designated by the legisls
, ture proper subjects Of taxation. In tn
) decision just referred to, the supreme cour
say, speaking of that section of the constitution
above referred tot This provision is perhap
broad enough to authorize the legislature t.
ASfJ " euA cVeu upou LIZ personal property,
rather upon the moneys and credits of NOV
residents, and it will be hete saly to examin
the statute provisions TO see whether the leg
islature has ever exercised or attempted t
exercise the authority to tax the money e
nOn-residents.'
1T vii. not, Of course, be contended,'' sa
the court, that any tax can be levied withou
) express provision therefor Without passin
squarely upon the question, whether the cor
stitution OF our State is broad enough to cove
such rax-they do hold that the laws then i
! force did not authorize the taxation of none
; and credits belonging to nonresident
t cannot discover that subseuuer
legislation has rendered the particular ques,io
! involved any more definite and pertains
believe there hae hot been IF late in thi
State any attempt SO to tax. Even though tt
constitution is broad enough to authorize ii
/ legislature to impose the tax. there are gray
r questions of r-:hlic policy that ought to an
/. probably have deferred the legislature from e,
]. ercising it, Tie supreme court say, in a.oy
case: IF such power were in fact possessed b
tue corporation, its exercise would scarcel
tend more to promote its own interests tina
those OF the individual who might suffer tt
inhiction Y since il
effect weuld be to drive much business and cal
| ,tal from the city from which great advantag
is derived
In my view, then, these certificates cam,
be taxed in the hands of non-residents. 1t is
t question whether they are proper subjects
taxation in any event-but question which
4 think the courts should decide.
6 The principal object, suppose, of our stril
gent municipal local assessment and State ia
o law, is to enforce prompt payment of taxes an
assessments, The extraordinary advantage
o offered to persons investing at local assessmel
$ and tax sales, are offered, of course, to indu,
: capitalists and others to purchase at such sale
!, 1t is urged that to assess for taxation SUE
}, property as is proposed would be disadvant
v geous to the county and city.
/ That may, in fact, be so; but it is not,
s my Judgment, proper question for you
f consider, although such considerations mig
q well deter the legislature from making SUI
9 property taxable: Yours respect fully,
G = E. G. ROGERS,
County Attorney of Ramsey County.
r AID. smythe thought the opinio
: should be considered carefully. as it was
matter of Importance and involved the ia.
!. ing or otherwise of large amount of capit