Daily capital journal. (Salem, Oregon) 1903-1919, 1914-08-27
THE TAX MIDDLE
NOT YET SETTLED
Injunction Issued Against Collecting
Penalty-Parties to Suit and Attor-
ney as Legislators Voted for the Bill.

The office of County Treasurer Moore
was seeking legal advice this morning
as the result of an injunction granted
by County Judge Bushey against the
collection of the l per cent month
penalty on the second halle of taxes.
Today a number of taxpayers called to
pay the last half of their taxes, which
becomes delinquent on September l,
and faced an ultimatum from Tax Col
lector George Paulus.
~ can collect your taxes with the
interest added, and l won't collect them
without it," was the way Mr.. Paulus
pc: Il, and then entered into negotia-
tions with the taxpayer As Septem-
Der I is close at hand the injunction
suit at this particular time makes it
trying matter for the county treasurer
and the taxpayers as no taxpayer wants
TO pay a penalty on taxes which can
not be collected until tne courts have
taken action. Likewise the tax col
lector, who is acting within his interpre-
tation of the law, does not wish to re-
init the interest which now amounts
to 5 per cent and be short that amount
should the courts decide that the PEN
atty could be collected.
approximately $1,000 in interest has
already been collected. The taxes due
have not been footed up since tae last
turn over was made to the county treas
urer and the penalties on half taxes
and the full amounts are not kept sep
arately, so it is impossible to compute
the amount the county would lose with
out going over the entire set of books.
The suit was brought by H. D. Pat
ton and E. C. Patton against ]. G.
Moore, as county treasurer of Marion
county. The injunction granted by
Judge Bushey on the complaint filed
this morning says that the county treas.
urer shall be enjoined from collecting
any penalties whatsoever from the
plaintiffs and from any other taxpayer
in Marion county where One-half Of the
taxes have been paid and where the re-
naming half shall be paid before Sep
tember /.
The complaint states that tae plain.
tiffs were assessed $30S.76 and paid
Sl54.3S in April. They offered the re-
naming Sl54.3S on August 26 and de.
manded a receipt in full for their taxes
but were refused. As result they de-
sired to test the law and because it was
ineOnvenient to bring all of the tax.
payers of Marion county into court
took it upon themselves to test the law.
This law was passed at the last session
Of the legislature changing the old law
so that penalty of l per cent month
might be added on taxes of which one
half were paid in April. The measure
was house bill 4l4, and H. d. Patton,
the plaintiff in this suit, voted for the
bill when it came up for final passage.
James G. Heltzel, the attorney VINO is
handling the suit, also voted for the
bill along with the other four repre-
sentatives from Marion county.
Mr.. Heltzel this morning said that it
was not the contention shat the legisla-
ture could not pass laws regulating
taxes, but this suit was brought on the
ground that the legislature could not
pass any measure which, in the Ian
guage of the complaint, was "wholly
unnecessary, exorbitant, oppressive, il
legal unjust, usorious and void.v Mr..
Heltzel said that he considered the law
and unjust.
This penalty on the second half has
never been paid in Multnomah county,
where Judge Cleeton ruled that it was
Illegal A number of other counties
have followed the example of .his eoun-
ty. Attorney General Crawford said
this morning tnat he had had few in.
lulries on this question but that it was
matter to be handled by the county
sttorneys and had referred all com
to this official for opin-
ons.