A-14344, MARCH 17, 1927, 6 COMP. GEN. 587

A-14344: Mar 17, 1927

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ARE PROPERLY PAYABLE FROM ANY UNOBLIGATED BALANCE IN THE APPROPRIATION . LANDS AND OTHER PROPERTY OF THE UNITED STATES" FOR THE FISCAL YEAR IN WHICH THE LANDS WERE ACQUIRED BY THE GOVERNMENT. THE TAXES IN QUESTION WERE ASSESSED FOR THE CALENDAR YEARS 1924 AND 1925 AND THE SALE BY WHICH THE UNITED STATES BECAME THE OWNER TOOK PLACE IN AUGUST. THE LANDS WERE NOT SUBJECT TO TAXATION BY THE STATE AFTER THE TITLE THERETO HAD PASSED TO THE FEDERAL GOVERNMENT. THEY WERE. ANY TAXES ACCRUING PRIOR TO THE TRANSFER TO THE UNITED STATES ARE. THE ENTIRE YEAR'S TAXES FOR 1925 ARE PAYABLE BY THE UNITED STATES NOTWITHSTANDING IT ACQUIRED TITLE BEFORE THE YEAR HAD EXPIRED. IT IS NOTED. THAT IT IS PROPOSED TO CHARGE THE UNITED STATES 10 PERCENT INTEREST ON THE TAXES WHETHER FOR THE YEAR 1924 OR 1925.

A-14344, MARCH 17, 1927, 6 COMP. GEN. 587

TAXES, STATE TAX ON REAL ESTATE - INTEREST STATE OR COUNTY TAXES ACCRUED ON LANDS BID IN BY THE UNITED STATES IN PART SATISFACTION OF A JUDGMENT AGAINST THE OWNER, ARE PROPERLY PAYABLE FROM ANY UNOBLIGATED BALANCE IN THE APPROPRIATION ,LANDS AND OTHER PROPERTY OF THE UNITED STATES" FOR THE FISCAL YEAR IN WHICH THE LANDS WERE ACQUIRED BY THE GOVERNMENT. INTEREST DOES NOT LEGALLY ACCRUE ON UNPAID TAXES ON LANDS BID IN BY THE UNITED STATES IN PART SATISFACTION OF A JUDGMENT AGAINST THE OWNER AFTER TITLE HAS PASSED TO THE UNITED STATES.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, MARCH 17, 1927:

THERE HAS BEEN RECEIVED YOUR LETTER OF MARCH 1, 1927, REQUESTING DECISION WHETHER THE TAXES ACCRUED UPON LANDS BID IN BY THE UNITED STATES IN PART SATISFACTION OF A JUDGMENT AGAINST THE OWNER, CALVIN A. BOEN, MAY BE PAID BY THE UNITED STATES FROM ANY BALANCES REMAINING IN THE APPROPRIATION "LANDS AND OTHER PROPERTY OF THE UNITED STATES.' THE TAXES IN QUESTION WERE ASSESSED FOR THE CALENDAR YEARS 1924 AND 1925 AND THE SALE BY WHICH THE UNITED STATES BECAME THE OWNER TOOK PLACE IN AUGUST, 1925. THE LANDS WERE NOT SUBJECT TO TAXATION BY THE STATE AFTER THE TITLE THERETO HAD PASSED TO THE FEDERAL GOVERNMENT. THEY WERE, HOWEVER, SUBJECT TO TAXATION PRIOR TO THAT TIME AND ANY TAXES UNPAID AT THE TIME OF THE TRANSFER TO THE UNITED STATES, UNDER THE CIRCUMSTANCES IN THIS CASE, CONSTITUTED A LIEN AGAINST THE LAND AND THE FEDERAL GOVERNMENT ACQUIRED THE TITLE SUBJECT TO SUCH LIEN. ANY TAXES ACCRUING PRIOR TO THE TRANSFER TO THE UNITED STATES ARE, THEREFORE, PROPERLY PAYABLE FROM ANY UNOBLIGATED BALANCES IN THE APPROPRIATION NAMED ABOVE FOR THE FISCAL YEAR 1926, ACTS OF JANUARY 22, 1925, 43 STAT. 782, AND JULY 3, 1926, 44 STAT. 875, 1 COMP. DEC. 301 AND 356.

AS IT APPEARS THAT UNDER THE ARKANSAS LAW THE LIEN FOR THE ENTIRE YEAR'S TAXES ATTACHES TO THE LAND IN THE MONTH OF JUNE IN THE YEAR IN WHICH ASSESSED, THE ENTIRE YEAR'S TAXES FOR 1925 ARE PAYABLE BY THE UNITED STATES NOTWITHSTANDING IT ACQUIRED TITLE BEFORE THE YEAR HAD EXPIRED. FOSTER V. DULUTH, 48 L.R.A. (N.S.) 707. IT IS NOTED, HOWEVER, THAT IT IS PROPOSED TO CHARGE THE UNITED STATES 10 PERCENT INTEREST ON THE TAXES WHETHER FOR THE YEAR 1924 OR 1925. AS THE UNITED STATES ACQUIRED TITLE TO THE LAND IN AUGUST, 1926, NO INTEREST CHARGES WOULD APPEAR TO BE DUE UPON THE 1925 TAXES AS THEY WERE NOT IN ARREARS WHEN THE TITLE PASSED TO THE FEDERAL GOVERNMENT. INTEREST UPON THE 1924 TAXES WOULD ONLY ACCRUE UP TO AUGUST 15, 1925. ANY INTEREST AFTER THAT TIME WOULD CONSTITUTE INTEREST UPON A CLAIM AGAINST THE UNITED STATES OR THE TAXATION OF PROPERTY BELONGING TO THE UNITED STATES, BOTH OF WHICH ARE UNAUTHORIZED. VAN BROCKLIN V. TENNESSEE, 117 U.S. 161. YOUR SUBMISSION IS ANSWERED ACCORDINGLY.