The daily journal. (Salem, Or.) 1899-1903, 1900-08-08
ATTORNEY GENERALS OPINION
Taxes Due From County to State Are Debts and
Draw Interest

Taxes Due From County to State Are Debts and
Draw Interest
Attorney General Blackburn has rem
dered TO State Treasurer Moore an ex'
haustive opinion covering the question
of the liability Of a county in the State
of Oregon for interest on state taxes af-
ter the same are due and payable. The
question comes up over claim which
the state holds against Washington
county for S43.0S of the University tax
of 1882 and 5000 of the state tax of
1896, and the collection Of which has
been in the courts for some years.
Washington county now offers TO pay
the principal in full, but is not willing
to pay any interest.
The Attorney General recites the fact
that during the pendency of suit insti-
tuted by the State Of Oregon against
Washington county for the collection of
the amount due with interest, similar
action against Marion county was tried
and determined in the supreme court,
in which decision it was held that the
state could not collect interest on delin-
quent taxes due the state, because such
taxes were not paid within 80 days after
they became delinquent, the reason
given being that the state by legislation
had hindered the collection Of taxes by
the county, 80 that it was an impossible
ity to collect and pay over the amount
due the state within the time pre-
scribed.
The principal proposition 10 which
Judge Blackburn addresses himself and
which seems to be the hinge Of the dis.
cussion is whether or not the state tax
from each county is debt in the legal
sense Of the word. lie quotes from Judge
Thayer in State vs. Multnomah county,
l3 Or. 2S7, who, in constituting Sec. 30S7
OF Hills code, used the following langu'
age:
"There can be no interest unless there
is debt, except where it is allowed as
damages and then the party RECEIVERS in
NoItHb DtChubc hS nus btSh uopilNOh VI
the use OF the money or property from
which he could have derived profit or
saved loss and tax is not a debt"
OF this ruling. Attorney. General
Blackburn says: al can not think that
the section Of our statute on the subject
Of interest has been properly construed
nor do | think that a tax due from the
county to the state is not a dobt: /,
therefore, cannot yield nv assent to the
statements OF law in said opinion"
Mr.. Blackburn then examines Section
27s9 Of Hills code and holds that when
the taxes are apportioned as therein pro-
vided, and are charged TO the county by
the State Treasurer they become bona
fde debt from such county 10 the state
and become due and payable as soon as
a sufficient amount Of money applicable
TO the payment OF the general indebt-
edness OF the county has been collected
by the Sheriff and paid by him TO the
County Treasurer; and the county is
not entitled to delay the payment of its
apportionment.
Mr.. Blackburn quotes from Or. $50,
which construes the law as fixing the
relation Of the county to the state in
the matter OF taxes 10 be that of debtor
and creditor; also "a Or. IA, which says
that "the effect Of the law is 10 create the
relation OF debtor and creditor between
the counties and the state" also 81 OR.
$50, to the same effect and to the further
effect that the state tax sis payable by
the county whether collected from the
taxpayer or not"
Following out these laws and construc.
tions the Attorney General holds that
the tax is debt and that the country
is liable to interest after the same be-
comes due, at the same rate as an in.
dividual would have TO pay to another
after his debt become due. He closes
the opinion as follows:
at is my opinion that the amount of
state revenue apportioned 10 Washing
ton County was and is an Indebtedness
from said county TO the state, that it
became due and payable within a reason
able time after an amount of taxes due
said county sufficient to pay the same
had been collected and turned over to |
the County Treasurer Of said county, |
that the county had no legal right 10 |
divert such money or any part thereof |
to, or use il for, any other purpose than |
the payment Of its share of the state !
revenue and that the county is liable TO
the state for interest at the lawful per
cent from and after the expiration of a
reasonable time 10 pay the same 10 the /
sta To after it had been collected and |
turned over to the County Treasurer of
said county"