The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-02-01
held by tho state treasurer as trustc,

held by tho state treasurer rs trustee
for the state.
"This opinion discloscs that the
State Of North Dakota is liable for
all taxes accrued and delinquent up
to the time that it received sheriff's
decd. It exempts, however, such land
from further taxation SO long as it
is owned by the state.
"Bcforc< these deeds can be filed,
It will be necessary to have all taxes
against the land paid. Under the
Bond act passed in 1923 (chapter
21g-1923) all taxes accruing and past
due on lands held under mortgages
by the state of North Dakota, and
which were either under foreclosure
or held by deed, were to be cancelled
and abatcd. A suit was started in
Burlcigh county to test out the 1929
law. The district court held that all
taxes accruing after sheriff's deed
was obtained would be abated but
that the taxes unpaid before the deed
was issued would have to be paid by
the state. A cross appeal was taken
from this decision by the Bank of
North Dakota and the county of
Burlcigh, and the decision of the SUI
prcme court this week gustains the
decision Of the district court.
"Ths leaves the State Of North
Dakota facing the problems Of how
to take care of these taxes in order
to protect the land which it has OBJ
tanned on these foreclosures. Since
the decision Of the lower court, VIC
have served an injunction on all
county auditors restraining them
from disposing of the lands affected
where deeds had been called for by
the holders of the tax certificates.
Now that the supreme court decision
has been handed down, undoubtedly
action will be commenced Immediate
~ to force us to dissolve the injunc-
tions and pay the taxes. and if this
is not done, the state will lose title
to such lands on tax deeds.
| Revolving Fund Needed
"Up to this time the Bank of
North Dakota has protected the
states property where tax certifi-
Gates were held by individuals and
where we could not restrain the au-
ditor from selling the property. We
have invested in these taxes, up ia
this time, $4,000 and the man.
agcmcnt feels that we have about all
|. the money invested in such taxes that
we can safely advance. As you know
the bank has no available funds, ex.
cept it's deposits. most of which is
public money, and must not be in.
. vested in any "froxen assets" such Al
} lands. Such funds can only safely be
invested in quick liquid securities
that can readily be turned into cash
As the amount required to take care
Of all these delinquent taxes will rur
into big money, we feel that the leg
islature should be asked to provide {
revolving fund sufficient to tak'
care Of it. The amount immediatel,
necessary, and which must be takci
d care Of at once, will amount to ap
: proximately 100000 in addition t.
y what already has been paid, and tina
the amount will possibly increas'
:, rather than diminish, as the paymen
: of these taxes cum only be taken car
t OF through sales of land and profit
i from the crops raised on said lands
: We further feel that the state itscl
Il will not lose any money, as the in
r, come from sales of land and crop
g should about hold this fund eve
il and eventually retire it entirely.
: 1--WE therefore suggest to your com
mission that the governor presen
this matter to the legislature by spe
d cial message and that the industrial
IS commission use it's best efforts t
n have law passed to provide funds t
d take care of this unfortunate situa
q ton.
n ave might add, further, that tn
% legislature passed an act in 1928 TO
IS the purpose of taking care of thi
= past due tax situation, and that j
% 1925 an attempt was made in the leg
\ islature to repeal the law. However
: when properly explained, the bill
;. were withdrawn SO that as matte
:. Of fact, two legislative sessions hav
- seen the necessity of taking care Q
ls this tax situation, but the metho
;, provided has been annullcd by tn
- ,upreme courts decision"
- GREEN'S Second Letter
: The second letter follows:
- Complying with your request fo
:, additional information regarding tn
= amount of money which will be RI
q quircd to pay the past due taxes o
= lands on which the state holds mort
= cages and which arc now under fore
= !, closure, or deed, beg to advise a
=, follows:
u "Taxes covering the years 191!
'e 1920. 1921, 1922, 1923, 1924, and 192
"a on forcclosed loans held by the stat
II Of North Dakota, arc approximate
,, $4,000; $4,000 of this amount hi
ID been paid by the Bank Of North d,
'r kota in order to protect the state
ot interests. OF this amount approx
y matcly 81 per cent of the certificate
he and subsequent tax payments is hel
by individuals, or, in other word
"a $4,000. The balance Of g. per cel
IN Of the total amount or $338,O0O
ID held by counties. Basing our col
* illusions on past experience we est
e. mate that under ordinary conditions
p will require an additional 100000
take care Of the taxes for the bic'
mum period Of 1925 and 1927, al
using the same estimates as abov
&c $4,000 of this would be held by il
to dlviduals and $4,000 by countie
III Tic amount necessary as stated
r our letter Of January 10, 1927,
Il II A.. A.~S,sA AS.aS