The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-08-26
Section IL provides that no law
impairing the obligations Of con-.
tracts shall be passed,

! lmpalrlng the Obligations OF con.
tracts shall be passed.
Section IT'S provides that no tax
shall be levied except in pursuance
Of law, and every law imposing a
tax shall state distinctly the object
! Of the same to which only it shall
be applied.
Section ZIG provides that laws
shall be passed taxing by uniform rule
all property according to its true
value in money, but that property
OF the United States and State shall
be exempt. ....
Section l76 provides that the pow
er Of taxation shall never be sur
rendered or suspended by any grant
or contract to which the state or
county or other municipal corpora
tons shall be party.
Section l79 provides that property
shall be assessed in the county. city,
township, town, village or district
in which it is situated.
1t seems to be conceded that if
the land had been sold at the annu-
al delinquent tax sales to individu-
ais instead of to the county, the
bank would now have to pay the
taxes.
In other words, take two tracts
OF land, both mortgaged to the Bank
Of North Dakota. One tract is sold
to an individual and the other to
the county. The bank would be COM
PEELED to repay the individual the
taxes, penalty and interest, but
where it is sold to the county, the
taxes must be abated and neither
the county, township or school dis
trict is entitled to its revenue. In
my opinion this method is not tax
ing property by uniform rule as
provided by the constitution.
II the law is as contended by the
state then taxing districts where the
Bank Of North Dakota holds mort
cages cannot anticipate their reve-
nue.. 1t is then uncertain whether
or not the land is taxable, even when
occupied or held by the mortgagor.
1t all depends upon whether or not
the mortgagor pays the taxes, or if
sold whether purchased by an indi-
vidual or the county
There is no way that a school dis
trict, township or county can compel
the mOrtgagor to pay the taxes and
If the bank neglects to do it, it
simply means that the taxes remain
unpaid.
Taxes have always been held to
be first liens on real estate and
mortgages inferior to taxes, but if
the contention of the state is cor
rect, then the mortgage is the first
hen and the taxes subsequent lien.
II the states contention was right,
1T would not even be necessary to
have taxes on land paid when a
mortgage is taken, since the mort
gage under its theory becomes the
first lien and in case it becomes
necessary to foreclose, the taxes
must be abated.
In view Of the fact that the legis
lature in the same act; in fact, in
the same section of the act, pro-
vided that mortgage must be fore
crossed IN one year in case of de-
fault in the payments or conditions
OF the mortgage, it is reasonable to
assume it did not intend to cancel
or abate taxes for more than the
current year.
IN question was passed, the county,
township or school district had
vested interest in the taxes for the
o"o III my OpIulOI, II the
law is constitution, it does not act
! will hold that the taxes for 1920,
1921. 1922 and 1923 must be paid
by the bank. excepting the hail in
demnity tax which has been held
not to be a lien.
The bank obtained the deed before
the 1924 taxes became lien and
therefore. as to that years taxes, II
will hold it is not enforceable
against the bank.
1t is my opinion that since this
is now the property of the
state of North Dakota, it is not tax
able, and that the taxes for the year
must be abated.
An order may be prepared ac-
Dated at Bismarck, N. OAK, Aug.
II, 1925.