Omaha daily bee., 1897-05-17
CITY HAS AMPLE RECOURSE
Supreme Court Decision on Special Tax
Collections.
PRoPERTYMAY Be coNFIscATeD AND MORE
II the Abutting Lots VIII Not Sell for
the Amount of the Assessments
Deficiency Judgment May
Be Taken.

Local city officials have taken a deep in
terest in the broad scope OF recent decision
of the Iowa supreme court that affects every
city and town in the state by greatly in
creasing the powers of the courts in collect
ing special taxes. The opinion was delivered
in the case Of Denny against the City of
Des Mones in which Denny had resisted the
efforts OF the city to collect grading and
paving taxes assessed against his property.
Dennys case was very similar TO great
many that are now being prosecuted in the
district and superior courts of this city,
where the property owners have made no
effort to pay their taxes for the reason that
they believe the property is worth less to
them than the amounts charged against 1t on
the tax books In the briefs laid before the
supreme court the question was raised as to
the Justice Of the judgment of the lower
court that wholly extinguished the owners
title to the property and gave 1t to the city
in satisfaction Of the judgment for de-
linquent taxes. The supreme court not only
upheld this finding, but went great deal
further and declared that the owner Of the
property was liable for personal judgment
for the balance of the taxes after the forced
sale of the property had failed to realize a
finding was based upon the courts nterpre-
tation o: section AIS of the code, which de-
fines the power of the city council in de-
termining the necessity for street improve
ments, and confers upon 1t the power of be-
ing sole Judge as to that necessity. The
supreme court holds that this power is not
in contravention OF the rights and privileges
of any citizen or property owner, and 10
not in conflict with the constitutionality Of
any statutes, state or national
The improvements under consideration by
the court were Of the same nature and the
conditions very similar to those that prevail
on Lower Broadway, the abutting property
being but slightly improved and the street
but sparsely settled. The action OF the coun-
Gil in ordering the improvements had been
attacked and denounced as fraudulent, just
as they have been in Council Bluffs. In
passing upon this phase OF the question the
supreme court declared: "The action of the
council ordering the improvements upon the
street was not fraudulent by the fact that
there were but few houses on the street, and
the owners of abutting property objected to
tine Improvement" The section Of the code
is cited which declares: "Special taxes shall
be paid, and shall become lien on the
abuttlng property" The court then goes on
to define this liability, declaring: 1t Is
proper in an action to enforce payment of
special assessment for decree to order
special execution against the owner for any
balance that may remain unpaid after the
property has been exhausted"
Under this ruling the city council of Coun-
Gil Bluffs has power to seize the property in
the actions that have been commenced In
the local courts to enforce payment of $3.50
of delinquent special assessment taxes, and
after the property has been sold to the
highest bidder at figure less than the
amount of the taxes, to take personal judg-
mert against the owners and seize other
property not subject to the lien. 1t is very
probable that il the Broadway property was
sold under special execution at the present
time it would not bring an amount any
where nearly equal to the judgment for taxes,
and additional personal judgments could be
taken for the difference.
This decision has caused a great deal OF
anxiety among property owners who come
within its provisions. Many of them have
already lost heavily upon their investments,
and are satisfied to let the city hold the
bag for the future, but the danger of ad-
ditional judgments being obtained against
them after the complete loss OF their
property may have the effect Of inducing
some of them to pay the tsxes to prevent it.
Members of the city council and City At
torney Hazelton have taken good deal of
| interest In the decision and have discussed
| it considerably The general feeling is de-
cidedly against any effort toward enforcing
| the drastic conditions of the law, and the
| city attorney has announced that in none OF
| the cases in court will personal judgments
| for balances be asked. Future councils and
| other city attorneys may not be so consider
ate and unless the supreme court reverses
| itself some poor property owner may be
given additional reasons for wishing his
money was Invested in other channels.