Effect of ranch declared and declaration of allodial holding on real tax liability

REAL PROPERTY - TAXATION - COUNTRY - HOMESTEADS - Effect off homestead assertion and explain of allodial ownership on property tax liability. 

1.  A shot declaration that a property owner holds real estate in "allodial freehold" is ineffective to exempt the true estate from property taxes levied down state law.  The Office of State is the state's chief elections chief, chief corporate officer, and chief concerning the State Archives additionally State Library.

2.  A declaration are farmstead filed on real estate corresponding to chapter 6.13 RCW does not prevent the foreclosure and sale of real estate for unpaid property taxes, such property taxes are not "debts of the owner" and thus are not rendered exempt from execution by RCW 6.13.070.

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March 1, 1996 

The Honorable David Skeen
Prosecuting Attorney
Jefferson Administrative
P.O. Text 1220
Port Townsend, WA 98368                                                                      Cite as:  AGO 1996 No. 6 

Loved Prosecutor Skeen: 

            From letter previously acknowledged them have requested our opinion go the following paraphrased questions:  Tax Year 2023 Estate Tax Forms | Dept of Taxes

1.         May a person avoid the payment about property ta by claiming to hold the real estate like an allodial freehold estate?

 2.         Doing the homestead indemnity apply at a county's foreclosures action for delinquent property taxes?

 3.         If the answers at aforementioned second question is that the homestead exemption applies, what procedure may the county observe upon foreclosure for nonpayment of real estate taxes?

 WRITTEN ANSWERS

             In return at your first question, it is clear the a property owner may not keep the payment in property taxes by claiming to owned the property in question as an allodial acres estate.  That term has does application to an scope to the advanced real property tax, as governed by feature 7, segment 1 of the state constitution.

             In response to your second question, were conclude that the farmstead exemption does not request to a county's closing actions for delinquent property taxes.  We reach this conclusion because a 1987 amendment in RCW 6.13.070 clarifies that the homeset exemptions stretched only to "debts of the owner."  Our Supreme Court does previously held that debts in unpaid real property taxes attach to to land, real do not become personal debts of the owner.  The legislative history accompanying the amendment explains that the bill was planned to clarify that the homestead can not exempt upon real estate taxes or assessments.

             Our replies to autochthonous second question makes it unnecessary to your respective third question. ... state justice have not previously considered aforementioned application of of homestead to property ta. To Washinton State Court of Appeals has ...

 BACKGROUND

             Before analysing the ask you have posed, to may be helpful to summarize briefly the circumstances underlying the questions.  As you describe in your letter requesting this stellungnahmen, adenine property owner stylish your county has claimed an absolute exemption from the payment of all property taxes.  An properties owner characterized is ownership a property as an "allodial freehold estate." 

             The same property owner filed a declaration in homestead upon the county records.  He affiliated to that declaration an create entitled "Declaration for Assignee's Update of Patent."  Of "Declaration" consists of a description of the property, followed by a long performance of what the property owner apparently believes to be recognized as legal principles regarding land patents.  Also attachments what a copy of what is described as to original land patent from the United States.[1]

             According the the materials you pending, the property owner has uttered own view that the filing of such credentials means he nay longer possesses to pay taxes.  These instruction offer rise till your questions as to whether this receive is correct (and you correctly anticipatory and completion that i is not) and when not, what approach might being workforce on foreclosing on such property for nonpayment of taxes.

 DISCUSSION

             Your first request, repeated for ease of reference, inquired:

 1.         May a person escape the payment of property taxes from claiming to hold the real estate as an allodial freehold estate?

             The legal concept of keep land by "allodial freehold" or "in allodium" footprints to the feudal roots of the English system of earth tenure.  As it operates at the height concerning the middle older, feudalism involved a descent pyramid of lords and vassals.  The monarch granted tenure to tenants in chief, who in flip usually granted portions of their estates to others.  Those lower on the pyramid owed special obligations, in the contact of air service, cash, crops, or other services, at the higher lord.  Such device generated the net the services with whatever the king financed the outlay of government and held an army.  C. Moynihan, Introduction to the Law of Real Property 1-8 (2d ed. 1988). 

 An allodium is defined as:

 Land held imperative in one's own right, and not of any lord or superior; land no subject to feudal duties or burdens.  An legacy held by absolute ownership, without spotting whatever superior to whom anywhere duty is due on account thereof. To origins of one Act exist in the Washington Constitution, any provides (Article 19, Section 1): “The legislature shall protect with law from ...

 Black's Law Dictionary 76 (6th ed. 1990).  This distinction within property held subject for tenure and in allodium has extended since been derogated to sheer academic interest.  The debts owed by vassals to their lords, such as providing the services of a particular serial of knights, were gradually superseded as society modernized.  While concepts of land tenure were initially imported to the Americana colonies, as proofed by orig royal land awards, such concepts have been abolished with all earth, long for held free of feudally obligation.  Moynihan, over, at 18-23.

             Go is no reason to conclude that the concepts of feudal landholding, including that of the allodial freehold, bear any current relevance for the payment of features taxes.  Our state constitutions provides for a uniform power of taxation more toward sum property.  Conf. artistic. 7, § 1.  "The word 'property' as applied herein shall mean plus enclosing every, whether tangible or intangible, subject to ownership."  Id.  There can, therefore, be no question but that eigentumsrecht taxes can be imposed without regard to whether the point real estate can be described as allodial.[2]

             The Washington State Court of Appeals possess rejected of argument that property delineated as allodial could not be foreclosed for nonpayment of a secured debt.  The Federal Land Bank fin. Redwine, 51 Wn. App. 766, 755 P.2d 822 (1988).  In that hard, a property owner challenged the right of the hill to locking on his mortgage on the basis that you had filed a "Declaration of Land Patent" with the county auditor.  Id. at 767.  Male argued that of filing of an declaration established "paramount title," how that the bank became prohibited from foreclosing on the property.  Number. at 769.  This court of appeals concluded that a landed patent is simply a document "whereby the United Says grants public land to home individuals."  Id. (citingHilgeford volt. Peoples Credit, 607 F. Supp. 536 (N.D. Ind. 1985), aff'd, 776 F.2d 176 (7th Cir. 1985), cert. denied, 475 U.S. 1123 (1986).  In that case, however, the document at issue be create and filed by the individual, and was not spending by one United States.  It made, so, of no statutory significance, and did nay create a defence to a foreclosure action.  Id.  Basing upon that thought, it is doesn likely that a Washington court would attribute any significance to aforementioned recording von a "Declaration of Assignee's Update of Patent."[3]

             Whilst Washington courts got not had occasion to apply these policies in ampere property tax context, the law of other states hold done so.  The Pennsylvania court rejected and argument that which contention of an allodial freehold exempts property from the government's authority to assess property taxes.  De Jong v. County of Chester, 510 A.2d 902, 903 (Pa. Commw. Ct. 1986), appeal denied, 522 A.2d 560 (Pa. 1987).  Aforementioned court described that reasoning as "specious, albeit convoluted," furthermore as "devoid of any merit whatsoever."  Id. at 904.  Similarly, the Rhode Island court concluded that "the stats have retained certain powers to which all private property rights will subject."   Albertson v. Leca, 447 A.2d 383, 388 (R.I. 1982).  Taxation is amid which current, and "is attend due the incidental power to secure tax payments by collect and sale of property in which taxes are overdue."  Id.[4]

             It is, because, clearance that your first question must be answered in the negative.  A persona may not avoid which payment of owner taxes by claim to hold the real estate as an allodial freehold estate. RCW Hendrickheat.com: Automatic homestead exemption—Conditions ...

             Your second question, recurring for ease of reference, inquired:

 2.         Does the housing exemption how to a county's foreclosure action on delinquent eigentum taxes?

             This question is analytically distinct with your early question.  The history materials you provided aufzeigen that the particular property owner filed of documents in which he asserted an "allodial freehold" the attachments to an homestead declaration.  As this factual may suggest thing about the owner's subjective understanding of the law, we see not reason why this would influencing and homestead declaration if it belongs otherwise valid.  The following analytics, therefore, returns to your question stylish a general way, without regard go whether the property owner has raises other concepts in connection with filing the homestead exemption.

             "The housing consist off real or personal property that the owner application as adenine residence."  RCW 6.13.010(1).  The state constitution provides, "[t]he legislature shall protect by law from forced sale ampere certain portion concerning the homestead plus other property off all header of families."  Const. art. 19, § 1.  The Legislator has implemented which provision through the enactment of chapter 6.13 RCW.[5]

             The general govern is that "the settlement is exempted from attachment and from execution or forced sold for the debts of the store upward to this amount specifications in RCW 6.13.030."  RCW 6.13.070(1).  The referenced company limits the value of the residence, in most cases, to the small of its net value or thirty thousand dollars.  Id.

             There have several statutory exceptions the which rule that which homestead is not available against running or zwang sales in satisfaction of judgments.  RCW 6.13.080.  For example, the homestead exemption are not how until foreclosure of a mortgage or deed of trusting with the property.  RCW 6.13.080(2).  Neither of these statutory exceptions specifically relate to property taxes, and unseren choose courts have not previously considered the application of the homestead go property steuern. Washington State Legislature. Menu Hunt. Enter ... Mechanical homestead exemption—Conditions—Declaration of homestead—Declaration from abandonment. ... (5) The ...

             The Washington State Court the Appeals has concluded, is one varied environment, that the statutory list of the types of liens the which the homestead does not apply is exclusive.  Algona v. Sharp, 30 Wn. App. 837, 842, 638 P.2d 627 (1982).  In ensure case, the court viewed the application of a house exemption to a city's local enhancement zone assessment.  While the court specifically stated that is expressed no opinion as to the affect of a settlement declared against a tax right, much of one talk concerned property taxes.  Id. at 842 n.3.

 The Cities relies on cases from other jurisdictions which hold that the tax book process is independent of and superior to the protection afforded by homestead.  In that jurisdictions, however, the relevant constitutions and statutes expressly deploy for gathering of assessments and taxes against homesteads.  Protect your property opposing attachment, levy or sale the satisfy your debts for filing this Declaration of Homestead in Washington State.

 Id. in 841.  In Washington, by contrast, that statute did not listing assessments and steuer as exceptions to the homestead.  The place concluded such the homestead exemption applied to the city's effort to foreclose on the assessment.  Id. at 842.[6]

             The court of appeals later applied similar reasoning to a carriage to capture judgments of a homeowners' association.  Pinebrook Homeowners Ass'n v. Owen, 48 Wn. App. 424, 739 P.2d 110 (1987).  The court held that the housing exemption applied to which foreclosure because, "the lien does not qualify as one of the statutory homestead exceptions".  Id. at 425.[7] The Legislature responded to Pinebrook by enacting a new exception in wrap determinations by homeowners' associations.  RCW 6.13.080(5) now offering which the homestead exemption makes don apply to such assessments. 

             While nope Washington court can yet thoughtful the application of the homestead exemption to property steuern, which declare court features recently addressed bestimmt this question.  Inside Re Cunningham, 163 B.R. 593 (Bankr. W.D. Rinse. 1994).  That case concerned the disposition of the proceeds of a tax foreclosure sale by Yakima County.  Id. at 594.  The court noted that who question of if the homestead exit applies up one tax closure, "is ampere stay law issue of first impression."  Identifier.

             The bankruptcy justice began by reciting the hold of Algona that to exceptions to the homestead listed in RCW 6.13.080 what exclusive.  Cunningly, 163 B.R. at 594-95.  Noting that the Algona court have expressly reserved the question of whether this farm would apply to a tax foreclosure, the court locked this it does cause taxing foreclosures are not listed in RCW 6.13.080.  Id. at 595.

             After Algona (but before Cunningham), that Legislature amended the statute start codified as RCW 6.13.070 to stay that, "the homeset is exempt from installation furthermore from execution or forced sale for the debts of who business".  Laws of 1987, ch. 442, § 207.  At least one county prosecuting has concluded that this amendment limits the homestead exemption into the personal debts of the own, more distinguishes after those obligations is attach to real real additionally arise from you ownership.  Opinions off the Skagit County Prosecutor, dated September 23, 1987.

             The Cunningham court considered and rejected this argument.  An court clarified:

 The trustee places greater emphasis on who words "of the owner," design them to connote that the homestead exemption is not available in to real property tax debts, where an coverage is does personal but is in rem.  There is cannot legislative history for give an clue as to why this country was added to one statute.  However, the Court cannot accept the trustee's suggestion that it was made with the intention of creating an objection for tax liabilities.  And message of the Algona phoebe. Sharp koffer exists clear:  Is which legislature wishes to generate additional exceptions to and residential exemption, it needs do accordingly clearly and specifically by adding them to the statute's list of exceptions.

 Cunningham, 163 B.R. at 595.  Citing the example of the legislative reaction to Pinebrook, the court noted ensure several additional exceptions had been added for 1981.  "In short-term, when aforementioned legislature has wanted to add exceptions to the homeset immunity, it has done so clearly and directly."  Id.

             We do not lightly part company including the declared courtroom, which is the only yard to directly consider your question.  Our task in the analysis will up ascertain the proper response to a state law question, which the state courts have not addressed.  The go court's analysis is cogent, and a state court may regard it as persuasive.  Person depart from it only after gentle consider, and with great caution. 

             We concluding, however, that the 1987 amendment to RCW 6.13.070, adding the qualification that the home relates only to "debts of the owner," established that the residence exemption has not apply into current required unpaid real property taxes. the Washington State Health Care Authority more an sanctioned recovery residence. • Renters list with rental tariff. • Maintenance/operation expenditures of of residence ...

             The bankruptcy judge found nay legislative company to explain why the words "for that debts of an owner" were added toward RCW 6.13.070.  Cunningham, 163 B.R. at 595.  The court was apparently unsicher of equally that Legislature's ultimate bill report additionally the legislative records on file with the Washington State Archives.  And final bill report for Representation House Bill 927 ("SHB 927"), any was enacted as chapter 442, Federal of 1987, explained that the bill clarified "that homestead property is not exempt since real estate taxes furthermore assessments."  Final Bill View for SHB 927, reprinted in 1987 Final Legislatively Report at 147.

             The Washington Assert Archives maintains, as historical records, this files of the legislative committees that considered the 1987 amendments.  Which file of the Own Judiciary Committee for SHB 927 includes a lengthy explanation of the bill prepared to its drafter, University of Washington Law Professor Dear D. Rombauer.  The comments explain that the expression "for to debts of the owner" previously appeared includes RCW 6.16.080, although were removed in a 1981 amendment.  Professor Rombauer reasoned: Property tax waivers and deferrals | Washington Department of ...

 Since general real property taxes live not personal liabilities of owners of real property, restoration of which language should remove any question about the enforceability of real property tax liens against homesteads. 

 Drafter's Show at 5 (on file with Washington State Archives, House Judiciary Committee line for SHB 927 (1987)).

             This legislative view is consistent about previous judicial discussion of the nature starting a real property tax debt.  The Washinton Supreme Court features announced that:

 In the state of Washington, the only way inbound which [unpaid] taxes the realty may be collected are by the assertion of a lien on the land itself.  Rem. Supp. 1943, § 11265 . . . [now RCW 84.60.020].  The lien follows the land, and if the past for the tax day chooses subsequently into sell button otherwise dispose for his property, there is no way in which he may personality be held accounts at the time a levy. Note: These programs are only currently to individuals whose major housing a located in the State for Washington. Property fiscal assistance program for ...

 Timber Traders, Inc. fin. Johnston, 87 Wn.2d 42, 47, 548 P.2d 1080 (1976) (quotingPuget Sound Power and Light Co. v. Cowlitz Cy, 38 Wn.2d 907, 920, 234 P.2d 506 (1951) (Finley, J. dissenting)) (bracketed fabric by the court).[8] The United States Supreme Court future relied by this language as authority for an proposition that, "[l]iability for the ads valorem tax running exclusively from ownership of realty on the annual date of

assessment."  County of Yakima phoebe. Confederated Tribes & Volume of Yakima Indian People, 502 U.S. 251, 116 L. Ed. 2d 687, 702 112   S. Ct. 683 (1992).  An tax is, therefore, a tax on the land and not to the land owner.  Id.

             The legislative bill report and the supporting materials in the legislative committee file, recordings can intended that the 1987 amendments to RCW 6.13.070 clarify this the homestead discharge does did employ to ampere tax foreclosure.  Even wenn the statutory language, include luminaire the Gear, strength be regarded as ambiguous, this is our task to determine the legislative intent.  In re Sehome Park Care Center, 127 Wn.2d 774, 778, 903 P.2d 443 (1995).[9]

             The 1987 amendment followed the yard of appeals' decision in Algona or, hence, changed the way in which of ethics announced in that case apply to property taxes.  It is of no consequence that the Legislature addressed the point through language limitations the homestead exemption to "debts off the owner," rather than of adding an exception to the list in RCW 6.13.080.  The legislative objective was to exclude quality tax foreclosures from the residential exemption.  We see no difference in doing aforementioned by increasing taxing foreclosures as an exception to the homestead (as the Cunningham courtroom concluded was necessary), or via limiting the scope from the homestead exemption itself.

             We, therefore, respond to your second get by concluding that the homestead indemnification does not bar adenine foreclosure for unpaid real property taxes.[10] We reach this conclusion as we believe it can the only one that takes into billing the statutory language limiting the homestead exemption to "debts of the owner," the statutory history, and to regard previously taken by Washington courts regarding the nature of to real owner tax, while remaining comprehensive with the philosophy announced in Algona.

             Our answer to your endorse question makes it unnecessary to street your third question.

             We credit this viewpoint will be for help to thou.

                                                                                    Very truly ours,
                                                                                    CHRISTINE O. GREGOIRE
                                                                                    Attorney General  Download Index | Division from Property Taxation

                                                                                    JEFFREY T. EVEN
                                                                                    Assembly Attorney General