Opinion ID: 2639442
Heading Depth: 2
Heading Rank: 2

Heading: the tax and property disputes

Text: ¶ 4 After purchasing Vance Springs, the Fraternity deeded it to the Immanuel Foundation, a non-profit association set up to hold the Fraternity's property. [1] The Fraternity then filed a document with the Beaver County (the County) Recorder's Office declaring that it was a religious organization exempt from state taxation. County officials promptly informed the Fraternity that its declaration was ineffective and that it needed to apply for tax exempt status formally before property taxes could be waived. [2] The Fraternity refused. [3] During the next several years, County officials repeatedly encouraged Fraternity leaders to either apply for tax exempt status or pay the property taxes on Vance Springs. The Fraternity did neither. ¶ 5 In 1990, the County notified the Fraternity that Vance Springs would be sold at a tax sale unless the property taxes were paid. The Fraternity refused on principle, insisting that it owed no taxes and was not required to apply for tax exempt status. In 1991, the County published notice of a tax sale and sold the Vance Springs property. After discovering a citation error [4] in the tax sale notice, however, the County rescinded the sale before the deed was finalized because the county attorney believed that the error would void any sale under Utah's forfeiture laws. ¶ 6 Over the next three years, the County renewed its efforts to resolve the tax dispute with the Fraternity, but its efforts were fruitless. The Fraternity persisted with its original tax position and filed several lawsuits in state and federal courts seeking validation, but had no success. [5] ¶ 7 In 1994, the County sold Vance Springs to Ranger Enterprises in a second tax sale for the amount of taxes due, approximately $15,000. This time the tax sale notice referred to the correct statutory citation; however, the acknowledgment portion of the tax deed cited the same erroneous code section contained in the 1991 notice. Hamilton and other Fraternity members believed that the 1994 tax sale was invalid and continued to occupy Vance Springs and to make improvements to the land. ¶ 8 In 1995, Ranger Enterprises brought a quiet title action against the Fraternity. Fraternity leaders attempted to represent the Fraternity in the suit, but the Fifth District Court prohibited them from doing so because they were non-lawyers. When the Fraternity refused to retain counsel, the court entered a default judgment against it. The district court also issued a writ of restitution that ordered Fraternity members to vacate the property and enjoined them from re-entering Vance Springs.