The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-11-19
STATES BANK
FREE0F TAXES
ON LAND TAKEN
Is Not Required, BY Law, to
Pay Taxes When it Fore
closes on Land
COUNTY ESTS
Commissioners Refuse to Ap.
ply the Law in Burleigh
County as Asked

Request for application of law
which would cost the county a con-
siderable sum of money in taxes has
been met with refusal by the board
of county commissioners, and may
lead to a test of the validity of one
section of the law affecting real
estate loans made by the Bank of
North Dakota.
The Bank of North Dakota, after
foreclosing on six pieces of land in
Burleigh county on which farm
loans were past due and unpaid, re-
quested the county commissioners to
abate the taxes against the land so
that the Bank could obtain sher-
iff's deed. The commissioners re-
fused, although they say the law is
plain on this point.
The matter, instead, was referred
to States Attorney E. S. Allen, who
says the county will contest the
application Of the law on the ground
that it is contrary to public policy.
The Bank Of North Dakota has
been forced to foreclose on some
pieces Of farm land on which loans
were past due, and on which con-
siderable amount of taxes also was
due. The law provides that the tax
es shall be abated, part of Sec
tion 8, chapter 292, laws Of 1928,
reading: Any taxes then remaining
unpaid thereon shall be cancelled
and abated by the Board of County
Commissioners of the County where
in such land is situated. Any land,
title to which is acquired through
foreclosure, may be sold by the
State Treasurer as such Trustee,
through the Bank of North Dakota,
acting as his Agent, for the best
price and terms obtainable. All
proceeds of such sales shall accrue
to the Real Estate Bond Payment
Fund"
Others Must Pay
A private loan firm, if it fore
closed on piece of land, would have
to pay up the back taxes before it
got title, States Attorney Allen said.
This also is true of the State Board
of University and School Lands.
However, with the Bank of North
Dakota, it gets the land without the
back taxes being paid. In the six
foreclosures in this county, the
county would lose 1000 in taxes, he
said.
Since the law provides that if the
land is subsequently sold the sale
price shall 60 into the Real Estate
Bond Fund the net result of the law,
in the above case, would be that
Burleigh county would be contribut-
ing $4,000 to this bond fund.
One objection which may be rails
:. cd to the law is, that it is not in
\accord with policy generally con-
templatcd in the laws establishing
North Dakota state industries that
they shall pay their own way, since
by this method taxes belonging to
the county are diverted to the
Bank of North Dakota and the Bank
is given an advantage not possessed
either by private loan firms or by
the State Board Of University and
School Lands, which also makes
farm loans.
County Loses
States Attorney Allen said that,
in way, the revenue from taxes
on the county may be anticipated
by the county commissioners. This
is contemplated in the law permit
ting them to issue certificates of
indebtedness in anticipation Of tax
collections, he said. The law giving
the Bank of North Dakota the right
to acquire land without paying tax
es is against public policy, he said,
because it makes it difficult for
the counties to function. Carried
to the extreme, he said, it would be
possible to deprive the county OF
most of its revenue.
The supreme court, the states at
torney asserted, had held that the
Bank of North Dakota is not the
state, and under this decision, Mr..
Allen said, it's business should be
conducted the same as any other
loan company, with respect to fore
closures.