The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-12-12
ENNEFFECTbUT .
DORMANT IF STATE
! ACQU|RESPR0PERTY
Morris Renders Opinion on Tax
Liens When Questioned
by ByerIy

When the state acquires property
subject to a tax lien. the lien is not
destroyed, Attorney General James
Morris said in IN opinion furnished
to w. E. Byerly. state land commits
sioner.
The lien, however. Mr.. Morris
stated. is rendered wholly unenforci-
bic land during the time that the
property is held by the state, IL Is MY
opinion that, tax liens cannot be en-
forced against 1t regardless of when
they have been acquired. The lien
exists in a dormant and unenforcible
condition.
Should the state pass title 20 the
property to an individual or corpora
ton not entitled to exemptions, the
restraint Is removed from the lien.
It then becomes active and enforce
bic.
Such a dormant tax lien, although
not enforcible against the property
while 1t is owned by the state. never
theless. reduces the sale value Of the
property to the extent Of the lien. 1t
is my opinion that your department
has legal authority to pay Oft such
tax liens, II 1t so desires. I: then be-
comes q question of business judg-
ment rather than a legal question as
to whether or not YOU should pay
taxes that have become a lien prior
to the date Of expiration Of the period
Of redemption"
Opinion Was Requested (.
Mr.. Byerly requested an opinion
bearing on the following questions:
ID Taxes which were assessed but
old not become a lien prior to the
Gate Of expiration Of the period Of
redemption.
co Taxes which became a lien
prior to the date Of expiration Of the
period Of redemption. .
Between April l and Dec. 81, prop
erty is in the process Of being taxed"
Mr.. Morris said. The tax lien Is In
process Of creation and when at any
time during that period the state ac-
quires property by foreclosure. as you
have suggested, the p~erfecting Of this
tax lien is Immediately stopped.
When title passes to the state. no
further steps can legally be taken In
placing a tax lien against the prop
erty and the state is not liable for
such taxes"
A different problem Is presented,
Mi. Morris said, rs to property the
title to which is acquired after Dec,
81. This property is subject to q lien
that has already attached, and It is
then, when the state acquires prop
erty subject to a tax lien, that the
lien Is not destroyed.
MI. Morris said that it vas his
opinion that the legislature intended
that real estate taxes should become
a lien on and after Dec. 81 OF the year
for which they are levied.
State Property Exempt
Under Section 176 Of the constitu-
ton" he said, property Of the state
Is absolutely exempt from taxation,
1T Is my opinion that this exemption
extends to property which the state
acquires through foreclosure OF, mort
cages given to your department ever
though the year OF redemption ex-
pireS after April ! (the date Of assess
ment) and prior to Dec. 81 Ci1e date
when taxes become a lien)."
MI. Byerly, In requesting al. opin-
ion, stated that during 1880 his de-
partment became possessed of q num-
Der OF tracts Of land through mort
gage foreclosure. sheriff's deeds for
which were issued during every
month Of the year.
las a consequence" Mr.. Byerly
said, Il am confronted with the prob
lem as to what land I shall pay 1890
taxes on and what I shall not pay on.
The state of North DAKOTA of
course wants to pay whatever taxes
may be due. On the other hand, I
would have no justification in av-
thorizing payment OF taxes for which