The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-01-09
TAX SYSTEM FLAW
TO BE CORRECTED
COUNTY AUDITOR SCOTT GOING
AFTER UNPAID TAXES.
A Large Sum Is Due from Property on
; Which Taxes Have Been Refunded
Thru the Setting Aside of Tax Title
Deals,

County Auditor Hugh Scott is MAX
ing preparations to levy against prop
erty which has escaped taxes thru the
refunding process, back and unpaid
taxes to the amount Of several hum
dred thousand dollars.
Those conversant with the situation
are Of the opinion that he will benefit
the county treasury only in the face
of the Hercest opposition on the part
of property holders who have been re-
sorting to technicalities in order to
escape taxation.
The matter of forcing payment OF
these unpaid taxes has been consid-
ditor and he will proceed at this time
en- the assurance of the courts that
he will be able to collect with COM
paratively little expense to the county.
For good many years, investors In
tax titles have been buying up prop
erty in the city. and county for small
sums, holding the same and paying
taxes on it, only to lose the title and
the property by a decision of the
courts throwing out the sale on ac-
count of some technical error in the
transfers There have been thousands
of these cases.
There is a clause in section 1851 Of
the general statutes of 1894, which
says: IF any tax property liable to
taxation is prevented from being col
lected for any year OR years by reason
OF any erroneous proceedings or other
cause, the amount of such tax which
such property should have paid shall
be added to the tax on such property
for the current year.
How the Refund Works.
Under the law, it has been neces-
sary to refund to the losing tax title
buyers all the taxes they have paid
6l1r In 10 hot ~ Io}1 ~q
the purchase and the date of the
courts decision compelling them to
return the property. The original
owners were not compelled to pay the
taxes during the years the title was
vested elsewhere and the county has
not only lost the 10 per cent interest
which it has bene compelled to pay
the tax title losers on the money they
have invested, but has had to return
the purchase price in each case and
has lost the taxes as we'll.
1T is proposed, as fast as possible,
to go back and make a careful index
of all refundments that have been
made by virtue of court orders or Pc
tltlons to the state auditor, to ascer-
tain on what grounds such refundment
was made" said Mr.. Scott this morn
ing. Then we propose to correct all
the errors that were pointed out in the
tax proceedings and to retax such
property in absolute compliance with
the laws.
This will require expert work and
a legal knowledge on the part Of the
one doing the work, as the technical
decisions in regard to legal points
must all be thoroly understood so
that corrections may be made"
Large Sum Involved.
Mr.: Scott said that the amount of
unpaid taxes, avoided thru the oper-
atoms of the tax title law, would
mount into the hundreds Of thousands.
touching upon the point of the statute
of limitations he was of the opinion
that it would apply only to cases
Where the courts decision returning
the title to the original owner was
handed down more than six years ago.
SO far as we are able. 10 determine
the present owners of this sort Of
property will be liable for all the
taxes refunded to the tax title holder,
no matter how many years that may
be for. All that is necessary to en-
force collection will be to show that
the courts decision causing a reyer-
sion of the title was made within the
last six years. said Mr.. Scott
In a tentative way the county aud
ltor during the present regime has
put his proposed system to test and
found it practicable enough. The de-
c1slons of the court compelling tax
title holders to give up their holdings
upon the return to them of their pur-
chase price and the amount of taxes
paid is almost as old as the tax title
industry itself. Most of these decisions,
however, have been made within the
last few years, while the unpaid taxes
run back for decade or more
The success of Mr.. SCOTS proposed
hunt after these unpaid taxes will en-
rich the county treasury to an amount
approximatfng half million dollars
but it is probable that great many
property holders will resist payment
Of taxes on property for, the years it
was not in their possession.