Daily capital journal. (Salem, Oregon) 1903-1919, 1916-12-08
IF TAX IS LEVIED
WARRANTS CAN ISSUE
Attorney Generals Opinion
Concerning Indebtedness
Clause

! In reply to tho inquiry Of j. NJ
| Dcvers, district attorney Of Lane coun.
/ ty, with reference to the authority OF
/ the county court to incur Indebtedness
under the recent constitutional indebt.
| cdncss and tax limitation amendment
and whether the constitutional limita-
ton would apply to present indebted
ness where that Indebtedness is pro
yided for in the tax levy now being
made, the attorney general has rem.
dered the following opinion. Mr..
Devers asks whether the county reach
cs its limit of Indebtedness simply be-
cause the taxes for certain fund
have not been collected, or if o certain
fund is created by special levy and
yet uncollcctcd, can the county issue
warrants against this fund. The opin'
ion follows
"The principle il well stated in the
ease of lirix V. ClatsOp county, AZ Or,
at page 230, as follows:
"Thcrc ure decisions Of able and
respectable courts holding that when,
at the time q contract presently to be-
come due, is made by county or II
municipality, fund is on hand and
appropriated to its payment, or fund
such as current taxes has been pro
yided, but is uncollected, or an appro'
of revenue producing property be-
longing to the municipality, such as
waterworks and the like, and the con
tract is expressly made payable only
out of such funds or revenue, with no
recourse on the municipality, it does
not create q debt or liability against
the corporation, within the meaning of
constitutional or charter limitations
similar to those contained in our con
stitution.'
The court cites numerous authorities
and gives examples of the application
of the rule, to which your attention is
respectfully called. The other cases
cited recognize the rule which we have
quoted above.
"Gt is, therefore, apparent that if
the tax has been levied, although not
therefrom would not be considered as
an indebtedness, especially If there is
n special fund in course of collection
from which any particular obligation
is to be paid,
"Rcferring to your last question. it
is apparent that involuntary indebted
ness, that is, indebtedness incurred or
created by counties in the perform
anco of any duties or obligations i'm
posed upon them by the constitution or
laws of the state, hereafter created are
to be included with debts voluntarily
created by the county in arriving at
the total amount to which the limita.
tion amendment applies, but that such
involuntary Indebtedness, rs defined
in the decisions Of our supreme court,
created or incurred by counties prior
to the adoption of the constitutional
amendment are not to be included in
computing the total amount to which
the limitation is applicable"
An opinion was given j. f. Stewart,
district attorney of Lincoln county, re-
garding tho question whether the
county court could audit and authorize
the payment of claims in the sum of
$GG,00O at the December session, which
says "the prohibition against creation
of indebtedness by counties in the per-
formance of duties or obligation inn
posed by law only applies to indebted
ness thereafter created and not to
debts outstanding at the time of its
adoption"