OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Honorable TO;P Yaay
CountJ Attorney
Potter couatf
Amarillo, Texan
d eapplemntal latter
inion ot this dopart-
iaent the r0u0w m faotaal Etato-
aenta, whioh we
opioton x0. 1910,
tat8 -~om&roalu,
oh -0plniOa dealing
:oa..yetl by tha lhrn*~‘s Hat-
tha united sate8 or tierloa
irotlon ‘or etato and oountf
oloalng ior'yoar osamination and in-
or the rollowing laatrument6t (1) Oon-
he Farmers Nutional Grain Corp. ~6 the
rernamat~ (a) Order approvin& suoh son-
awry Dept. or the United State8 gorem-
onraganoe from Farmer8 ESational War&XI80
to the United Statea ~vsrrunant. {Note;
Bar #s~prrrpxms of the opinion requestad herain, the
Farmera Xatlonal Grain Corp. and the Farmer6 fatLonal
Warehou~o Gorge map be oonsldared as one and tha sama
organleation, one being Q eubeidiary or tha othati).
Honorable Tom iieay, Page 13
~Bridlf, the f&at8 In this aa8e are a8 fO11OW8:
On June 12, 19.956, The Farmers NatIonal Orain Corp.
entered Into a Oontraot to oonvey to thr U. 3. govern-
mont all oi It8 aeaet8, ruoh oonveyanoe to bo mado
prior to Ootober 31, 1936, (See Sec. J of Xnrtrumont
&l), and to be eubjeot to the approval of thr Soo'.
of Trea8ury (See Sea. 19 Of 8UCh iMtrUzU.nt). It
eeonm that oertain minor ohanger were mado In the
orlglnal agamtent, a8 lr ldeno ed by ~upplemntal
agraemmt8, 00plr8 of whloh we have sot been able to
obtain. However, we unduotand that ouoh aupphmnt-:
al agreesont8 do not oontaln any provI8loari altering
the origIna agree.oant a8 to any of the 188ue8 to be
dieouased herein. h8pite the iaOt that maoh a88,t8
wore to be transferred to the government prior to
October 91, l@bd, it 8eema that the Secretar of the
hOa8UI'y dib not approve thi8 agreement unti I BoIem-
bar 7, 1986, (See Instrument #S) and that no aotual
oonvepanoe 0r th6 speolfio property In quretfon Wa8
made until February 84, 1937, (SW Instrum8nt #S).
We are aoting under the a88lLoption that the ]rarmore
National Warehouse Corp. etill retained title to
this property on Januarg 1, lQS9, when the tat lerr wae
made, that the governm8nt did not.hare title at suoh
tine, and that when the oonreyanoo Wa8 made to the
~oo*ormmnt in Tebruary of lOSO, it took M 8ubJeet
to the tax lion ior t6Xe8 lMe88ed against 8ald OOrp-
oration. I lpight add that this property wa8 not ren-
der86 for taxation by 8uoh oorporatlon, but that an
arbttruy ameement wae amde by the tax oolleotof,
and that auoh aere88sent we8 probably me,de after the
a(orunment aoquired title. Wo do not olaim that the
government l8 liable ror the tax88 la question, but
do oontenb that there 1~ a lien against suoh p%Wpertf
ror unpaid taxes for the year OS 1937.
?,he government Lo threatening to rile 8uit In
Iode& Court to clear title to this property anA
denies that the State nnd CoUnty have a lien on
same r0r 1981 taxe8, for two realroas, to-wit:
"1. It is oontended that the federal governimsnt
acquire6 equitable tltls by rlrtuo o? the oontraot to
oonvey (Iurrtrumant #l), whleh oontraot beoam rrmt-
ivo on approval of the Treaeury Department before
January 1, 1937, and that even though the government
Xonorable Tom Sear, Page 3
had laerely an oqultabla title, the property waa not
aubjeot to tixatlon by the State and County. (Not.:
The U. 8. attorney ha8 agreed to turnish authorltIe8
to the effect that property ln whloh tha tadaral gov-
emugiant has un equitable t1tl.e ia not subjaot to tar-
atloll).
"2. It is rurther a0ntandad that no lien r0s 8tata
and oountp taxra attached to this property beoause the
tax88 in question wre not daa and payable until Qot-
ober 1, 1991, (ii the oorporatlon had retained title),
&ud that under our state law, no lien 18 oraated iOr
taxes until aam8 broom du8, and that sinoa the govern-
ment aoqulrad title in February, 1997, It aoqulred
legal tit18 before any tax lien W68 ore&ad or attaohad
to thir property, and that no tax lien oould b8 at-
t;;gd to the property arter the gorernmnt aoqulred
.
We will, themtore, greatly appreolate it It you
will advise UB ELI to t& rolloWing matter8t
*l. Doe8 the oontraot merked Inrtrument #l
oonref equltablo title in thi8 property to tha
redaral goverauaent? Ii ao, doe8 the raot that the
governmentha8 equitable title exempt suoh property
fcoa llabllfty ror state and oounty taxes?
w2. At what data or time doe6 the lien tot rtata
and oountf tam8 attach to property?
"3. In four opinion, la there any akarlt to tha
Sovarnsent'8 oontantlon No. 8, whloh is set out on
Page 8. of thl8 letter?”
The dotcralnatlon of whether or not “Inrtrument
No. 1" oonsidered in oonneotlon with *InInetrumentIlo. a*,
operate8 as a transfer, a88&MIe!lt or aonrefence t3t the aquit-
abla title to the pmperty involved, to the United Statate or
Amuloa, depend8 upoa tbo rule8 or oonstructlon annouaoed by
the oowts or Texas, browse it is a rundammtal prlnolpla
that raal proputf 18 exolu8lvelf subjaot to tha
orarmaut w%thln whoaa territory it la sltuat$d ii"5eF . x% .
hc.
Bonorabie Tom Leaf, Page 4
Although legal title doea not paas to a vendee or
purchaser under a oontrctot of sale, until aotual delivery
or a deed, without retention or a vendor’s lien therein,
said vendee or pumhamer, e8paolally where he goee Into
poaee88ion, la lnveeted with squitable title from date or
aontraat, or, ln any event, iron date ha takes poaaeaalon,
and any fnorment, advantage, or enhancement to the prop-
erty Inure8 to hi8 bendit, and detriment,dapraoIatlon,
or loss thereto without fault of lithar party muat bo
borne by hln. 43 Tex. Jur. 3. 241, 242; 66 C. J. 702-708;
Peters Y. Clewnte, 46 Tex. 114; ke8on v. City of fbu8toA,
(Corn.App.) 245 S.H. 485, 225 SAY. 756; DImIt Elevator Co.
Y. Garter,70 S.W. (26) f315i Ingrem v. Control Bltulithlo
co., 51 S.W. (2d) 1067; irluorth Y. Elllaon 29 S.W. (2d)
639; Willie 6: Conner Y. Turner, 25 S.W. (2J) 642s Rirer Y.
Janeb, 9 3.W. (2-d) Q&?; Fullerton Y. Sourry CO., 14s 8.W.
971; Bled808Y. Fltt8, 105 S.W. 1142; Slaughter 0. Ooka co.,
79 S.W. 863; White Y. Cole, 29 S.W. UAS; Taylor et al v.
Barrin et al., 127 S.W. (2d) 945.
It 18 6180 nettled by the deofaione’ot the Texa8
oourta and the oplnlone or thIe Department th a t,’ lxoapt In-
sofar aa the rule loay ba varied by egreeumnt batwaen tha
oontraoting parties or by a retsntlon ot poaaaa8ion b the
vendor, the purohaaer will ordInarlly b8 liable for a L t-8
aooruia& atter the ueoutioa ot the oontraot where It la of
auoh a oharaoter as to oonstltute him the equitable owner
or the property. SS ths purohoaar, titer the oontraot la
aa6e, -goes Into po8aeeelon and enJoy the uaa o$ tha prep-
ertf, he is liable tar the taxes aCtOrUN during hlr poa8aa-
alon, notwithstanding the oontraot require8the vendor to
oonvrf by warranty doed at a tutura date. 66 C. J. 1047 -
1048; Taber Y. Stat., 86 S.W. 0Sb& Harvey Y. Provldent In-
748t0ent Co., 156 S.W. 1127; Leonard t. K8tia.U. 5 S.W. (2d)
197; Attorney General*8 opinion 0-226S.
Thus, it iollows that ii the attached instant,
designated as Ynetruaent No. 1” is or form and eubatanoe,
tenor and erireot, to vest equitable title in the real eatate
eought to be talEed, in the Far0 Credit iadmlnletratlon on the
date thereor, to-wit, Juno 12, 1956, or,, am oontanded by the
admlnlstratlon, on November 7, 1996, the data of letter oi
Trearury Department approving with ohaagee noted, raid oontraot,
which letter la deslguated a8 ~In8trument No. 2-, than 8uOh
real estate would not be 8ubjeot to State end OO~tf ad Valor-
em taxes tar the year 1937; beoauee, the equitable a8 aontra-
diatlngufshed from the legal title, being eubjeot to aase68-
mnt for taxes, and said equitable title vesting In en avowed
Honorable Tom Jeay, Y&g8 5
instrunentality or agency 01 the Federal Government, prior
to January 1, 1937, there wouid probably arise an ianunity
fros &ate and county taxation under the Constitution of
the United states and iirtlcle 7150, Revised Civil titatutes
corU6rrlag eteqtion upon land
of Texas, 1925, exjmererrsly
owned by the Fader-61 government.
However, we do not find it necessary in this
opinion to detemlne the preoim question of whether ma1
estato, to which the United %&tern hea equitablr but not
legal title on January 1st of any tax year, is aubjeot to
state and oounty ad vaiorea taxes for that year; bsoause
we are aoniinoed that nInotr~nt No. I”, whether oonaidered
alone or in oonnectlon with Qmtrament Ho. 2" does not
operate to vest equitable title to the land in question in
tha United 3tates prior to January 1, 1937, bu%, on the
aontrary, both legal and equitable title on said date rostod
in tha Faraera Xctional Grain Corporation, 80 am to be aob-
joot to Stats and oounty ad ralomm taxes for ths year 1937.
To riaoh this oonoluslon it is neoeeeary to oon-
ridor qIwtruaant Ho . 1 ”in itslntlr ety a ndfr o m
its fo ur
oorneca. H4no4, it la our deelm the3 aaid l.artrumont mnaln
aa au attaohed lxhibtt to this opinion and oowlderea as a
part hor4of, booauso it is too,lon@hy to ba oopiad h4so5,n
rorbat lm. Howovor, we deem it neorseary to rsfer to and
sometimes quote pertinent portiona oi said Instrument.
La sscticn~.theroor it is 4tat4d that th4 offer or
transfer by the Faramra Rational Grain Oorporation (herein-
after rerormd to aa the Corporation) to the Farm Cmdlt
Administration (heroinafter referrod to a8 AdPliniUtratioa)
in payment of or to relleva itself of liabllltisr as OS June
SO, 1936, oontemplatsa the transfer of awsta and the reloaee
of debts of the aubsidiarlcs ae well as the Corporation, ex-
oept suoh asoets as am expmesly reeervsd.
Section 2 provides thet all aots under the ooa-
traot shall be SrSorcted on or before October 31. 1930, but
shall be nade efi”aotlve as of the olose OS busLnesa oa June
30, 1936, and the books of the Corporation and the Qat4rmla-
atioa of prorits au6 lose44 therbirom shall be aa of that
date.
section 9 atipulatea, in part, as follows:
Honorable Tom Saay, Pago 6
XB of the close of buaimao on June 30
l036,"k aotually on or prior to Ootobsr 31, l&b,
the Corporation shall transfer all of its aasota
hold June 30, 1936, or th4 proo44aa theroof, lx o o p t
for assets retained as her4lnafter provided, to tha
Mralalatratlon, or as ordorod by the Admlaletration,
and the Uminiatration shall thereupon 04no41 or N-
lI.4~4 the Corporation of all obligations of any M-
ture whatooarer of the Corporation to the Admlal8tra-
tion except obligations erldencrd by notaa or doou-
meats bearing date on or aftor June 13, 1938, and ox-
oopt obllgatloaa Sor rhloh the Gorporatloa 8hal.l ooa-
tinua to bs liable under the t4rma of this Agr4aDmAt.~
Section 4 provides that th4 Gorporatlon shall re-
tain and oontinue to be liable for the payaoat of oortaln
daacrlbtd asaeta held and owned by the Corporation at the
oloae or buaia484 oa June 30, 1936, at a dotormlr#d prlO4,
uuong whloh aaaste wem drafts for oollootLoa, aoaoanta r4-
oelvable, depoelte, adYancea on grain, lnv4ntoriaa Of grain,
aood, oto., norships ln aommodity exohangoa, offloo turni-
,ture, rlrturie and automobiles, insureno oontraota, end
open gralo.contracts, spot or tuturoa.
soctlon 5 provides tar th4 retontloa by tha Corp-
oratloa of oortaln deaoribed property, laoludlw oertiln real
e&ate, at the option either of the Atlmlai8tration o¶?the
Corporation, expreeaea in writing before Ootobor 31, 1936.
Section 6 provides for the leaelng by the Adfalala-
tratioa at the option of the Corporation, of oortala gropor-
ties owaod by the Corporation Sor a period OS oaa y4ar Oom-
nwnolng July 1, 1936, with an optloa of ronawal for a further
period of oaa year on terms and oonditioaa to \M agreed upon
aad with an option to pur~hesa+ xaoludoain thi8 property
era certain aouutrg elovatora aad 8o.m nlnoteoo ternriaal aud
eubtorminal sl4ratore located in Terse, Oklahooma, Ohio, IO-
bra&m, Illinois, Kansas, Ylnneaota, Iowa, Waehlngton and
North Dakota.
Honorable Tom Sony, Fogs 7
section 7 providee that the Corporation, In addl-
tion to the lIabllitiea acoruing after June 30, 1936, shall
oontlnuo to be liablr and in due oourse pay the balanooa due
at June 30, 1936, on All of its lIabllltlas at that date,
inoluding the indebtrdnarce to the AdminIstratloa, whleh ahell
bo roduord by the aggragato amount of oertaIn deaorlbed ltoma,
Ineludlng not.46 and grain drafts paynbla, cuetomre* oradit
ba~anoos, aooounta peyable, aocruod grain handling ahargo
payable, aooruedllablllty for tame on aeeets retained, and
llabillty on olaiaia end open grain ooatraota. AA amount was
fixed ior roaor?oa, and it was agrood that if all llabllItlee
ror whioh roaervea are set up are not soonor settled,then
col~vlanolngwith the year 1937, the CorporatIoa shall oa
July 31 of laoh year, pay to the Saoratary or the Treasury,
ao muoh of the roaemea, If AAJT, as are no longer raqulrod
to meet the maxImum liability of the Corporation for llabll-
It&esnot yet eettlea.
section 8 provides that In addition to the.amount
the Corporation will owe to the United &ate8 of rmerioa on
aooouut of faoilltIea retained by it, the Corporation shell
on or before Ootobrr 31, 1936, pay to the Secretary of the
Treasury aa amount equal to the value of alI aseeta rotaSnod
by it under paragraph 4;9saa the sum of all llabllitio8 whloh
are herein provided. to be paid by the Corporation Ander~ pare-
graph 7, and all raaervoa provided, or #2,500,000., whloihar
amount &all bo gmatar. dootfon 0 prorldaa that “the Ad-
mInlatratlon ahall on or before October 31, 1936, loan to the
Corporation, ror worklag oapltal, an amount equal to the dif-
fstent$e between the amount paid the Secretary of the Troaaury
under the romgoiag 8ootlon aad $E,500,000., plus auoh addition-
al amxtnte, if any, ae may bo aooesaar to brlAg the total
working capital of the Corporation to s 6,GOO,OOO., as of fun4
30, 19S6,4 tha amount loAnsed to bo lvlaoaaod by a new noto sf
the &%rporatIon, dated June 30, 1936, payable quarterlr, the
unpaid principal bahxe on ouch new note to finally mature
on June 30, 1946; to eocure said note a new FundingAgreemoat
is provldod for, dated as of June 30, 1936, to euporaede the
present funding agreement but alm.l.larthereto, and providing
that upon default in payment of’ Interest or prinoipal, the
AdmiAiatrutIoa ehell hare the right without notioe to acoel-
erato the maturity of the entire lndebtednees.
Honorable Tom deaf, Page 8
Section 10 provide4 that the Corporation ahall
on or b4for4 Ootob4r 31, 19116, oau44 it4 original 4took-
holder4 to oontrlbut4 at 14a4t $3,000,000.00 to the capital
stook of surplur, aooount of th4 Corporation, ths pr44mt
outetandlng rtook and new 4tock to b4 allooated arid 18eued
on a b4el4 prorid4A therein.
Loans to etook holders for th4 puroh484 Or 4uah
4took are proribed by S4otion 11 from the A~i6tratiOn,
MA prorleion 14 m4d4 for the lxeoutloa end peymnt of
notes therefor iaaturlw as late a4 1946.
Seotlon 12 provides that ths Corporation shall.
retain one-eighth oenf per bunhe out or the marketing
proaeede or grain up to end lnoludiog fun4 30, 1936g one-
fourth osnt per bunhe to and lnolading fun4 30, 194Oi end
one-hall cent per buehel to and inaludlng June 30, 1946, ~14
retain8 to be addltlonel oollatsral for the note4 of the
regional4 to the.gMnl4ttatlon, with sp44lflo prorlelon~
for the applioation of 4uoh payments.
Seotion 14 mvld44 that the AddniStratiOn will
loen the CorporationP3,000,000.00,evrfdenoeii
by no840 ma-
tUdll6 Jtdy 51, 1939, to be paid from the $3,OO0,000.00 re-
oelted from its regional atoakholder4.
84otlon 13 provide4 that the Umlnlatratlon ahall,
a4 proqtly a4 porslbla and in 6114 00~~44, re4ommnA to th4
Seantary or Treasury the 84oeptenoe by him of .th4 eettl4iwnt
and roarraugrmnt of fh4 lnAebtadne44 of the Corporation, n44-
eseary w a4 to permlt rlnal perroreanoe of 4ll of the act4
provided to be performs4 in thl4 agreenmnt, a4 of the 4lo4r
of bueine44 on June 30, 1936, but eotually on or before Oof-
ober 31, 1936, exoept a4 to aooounting end any aAj@4tnmnt4
thet may be neoeeeery in oonneotlon therewith and any other
obligation4 or undertakings whloh by their term4 extend b4-
food that date. 8eotion 16 prorid that the llablllty on
Oapital stook oontrlbutlone au4 note thueon shall oaly br-
00144 erreotioemh4n the approval or the Seoretary of the
Trea4ury is obtained, and SacMon 19 provider that the ent ma44 upon lenA4A
property shnll be a epeoiaf lien thereon; and
all property, both real and p4reona1, belonging
to any delinquent taxpayer 4hell be liable to
seizure and sale ror the payment of all the tax-
es end panaltlee due by euoh delinquent; and such
property nay be sold for the paymnt of the taxes
and psnaltlee Au4 by such delinquent, under euoh
regulation8 a4 the Legielature &my prOTlA4.~
(jSmpheele Ours)
ArtiOle 7172, RevleeA Civil Statutes of Texas,
1925, la Aealaratory of this oonetltutlonal lien, and
prov1488:
"All taxes upon real property shall be a
lien upon euoh property until the earn4 shall
have been paid. end should the aeeeeec~ fall
to ee4eee any real estate ror any on4 or more
years, the lien shall be good for every y4ar
that he should fall to aeeeee for; and he'may,
in llatlng property ror tax48 any year there-
atter, aeeeee all the beok tuee due thereon,
aocordlng to the provisions of this title."
&tlolo 7151, K.C.8. of Texas, 1923, proTlA4e
in pert as roilowe:
*All property shall be listed for taxa-
tion between January 1 and April 3(i of eaoh
year, when required by the ameasor, with r4f-
erenoe to the quantity h414 or own44 on the
.flret day of January in the year for whloh the
property le required to be lleteA or rendaml."
No eyeoiflo tlrue being fixed in the Constitution
or 4tututae ror the attaohment of the ad valorem tax lien
on land, resort muet be ha6 to oeee law for the 4OlUtlOn
or thle oontrolllng faot.
Honorable Tom Seay, Page 14
The curly o&se of Cruger v. Clnzuth, 3 Willson, Tex.
ir. Clv. Cas. Section 24, under oonstitutlonhl and etatutory
provlslons substantially similar to the ones now govsrnlng,
ha16 a8 follows with rererenoe to the time for the aoorual
of this lien:
RUnquestloneblp under th@ provisiona or the
laws olted, appellant, being the owner of the land
on the 1st day or January, l&32, was liable person-
ally for the tars6 thereon Zor that year, though t&e
amount of suoh taxes wa8 to be subsequently asoer-
talned, and though oolleotion oould not be made
thereof before October; for the law expresely pro-
vides that the taxes shall be oharges against the
person owning the property on January 1st. From
thle it follows that appellee Mnnuth was not lla-
ble personally for the said taxes, he not having
beooma the owner of the land until after January 1,
1222. This being true, we think the lien provid&d
by the Constltutlon attaohee at the time the lla-
blllty 1s rlxed by the statute, and la an lnoumbranoe
upon the land though the amount or the taxes 18 not
then fixed an d determined. . . .
Under our eystem the tax is levied on the 1st
day of January of laoh year, and the assessment 1s
made as of that date, although the rendering or
listing and valuatlon ot the property 18 in fact
subsequently made. The evtdenoe ln thls aase shows
that the etate and oounty taxes wsre an lnoumbranoe
upon the land when oonveyed by appellant."
This deolelon is followed in the oase of Carswell
& Co.mpany '1. Habberzsttle, 87 3.W. 911, wherein the court
said:
"All property owned by a person in this state
on the 1st day or January cruet be lleted ror taxe-
tion between that date and June 1st of eaoh year;
ad, notwlthatandlng tho taxes do not bsooa due
until the 1st day of October following, he is
personally liable for the taxes. of that year, though
he sells~the property before the amount of euoh
Honorable Tom Seay, Page 16
taxes has been ascertained, an4 before the paysent
thereof becomes due. Ii not paid on or before
the 31st day of January of the suooeedlng yesr,
a penalty of 10 per oent on the entire ampunt of
suoh taxes aoorues. To meoure the payment of
taxes and penalties, the Constitution provldee
that ‘the annual assessment made upon landed
property shall be a speolal lien thereon, and
aLl property, both real end personal, belong-
ing to any delinquent taxpayer shall be liable
to seizure and sale for the pay;;lentof all the
taxes an4 penalties 4ue by such 4eiinquent.’
Article 8, 1 15. This lien attaohes and ths
taxes beoome an lnoumbranoe on the land from
the date llablllty is fixed on the owner, which
1s the 1st bay of January oi the year, although
the aluount of said taxes is not fixed and de-
termined until txolas tirW subsequent thereto. It
tollows that the tax88 due by apjellee@s lntest-
ate for the year 1900 on the land sold aypellsnts
were an lnoumbranoe on said land when oonveyed,
and remained suoh until paid off by them, ln June,
1901. Cruger v. Cinnuth, 3 Allison, Clv. Car.
Ct. App. 1 84; Almy v. Hunt, #S Ill. 451 Rundell
v. Lakey, 40 N.Y. 614.’
In the oase of Sate v. Barmer, 59 S.W. 541, the
8uprems Court of Texas, ln construing this constitutional
lien held, at first view, oontrary to the above deolslons,
in stating:
“The state olalao no personal llablllty on the
part of the detsndant, Farmer, for the taxes, but
asserts that Farmer bought it subieot to the tax
lien on the state, and seeks to onforoe the llen
upon the land itself. Artiole 7, I 15, 0r the
oonstitutlon reads as follows: *The annual assees-
ment made upon landed property shall be a spealal
llan thsreon, and all property, both real and personal,
belonging to any delinquent taxpayer shall bo liable
to seizure an4 sale for the pay.xent of all the taxes
and penalties due by suoh delinquent ; end suah prop-
erty may be sold for the payment of the taxes and
penalties 411s by such delinquent, under suoh regu-
lation as the legislature may provide.’ The lien of
the state, under the provisions of the Constitution,
Honorable Tom Seay, Page 16
arfses out or the assessment of the property,
an4 does not exist until that assessment Is
made. It 1s the assessment made annually by
the offloers of the state, un4er and in aooord-
anoe with the law, which holds a lien upon the
land. The word ‘assessment,’ as here used, evl-
dently means the sum wbloh has been ascertained
as the apportioned part of the tax to be charge6
against the partloular pleoe of property; but
under our oonstitutlon, an4 the provisions of
our statute, the word embraces more than s,lmply
the amount, and inoludes the procedure on the
part of the offlolals by whloh the property is
listed,valued, and finally the pro rata de-
olared. Clegg v. State, 42 Tex. 610; . . .v
However, the ‘issue before the court in State
.v. Farmer, supra, was the exlstenoe of this lien, under
an assessment, invalid because of a defeotlve desorlDtlon
of property, rather than the time for the attaohment-of
suoh liens. Therefore, we 4o not believe the quote4 1
uage shouf4 be extended to mean that the lien does not?:-
taoh until such t&w as all ttatutory duties of the assess-
or are performed and the anmunt of the tax rlna.lly oomputed.
The oourt was merely holding that.8 lawful and valid assess-
ment was a prerequisite to the existence of a lien but was
not passing upon the time for the aoorual thereof. That it
was not the intention of the Suprems Court to overthrow the
deolslons hereinabove discussed, holding that the lien at-
taohes as of January 1st of the tax year, rather than on.
the date of the aotual vassesament,w 1s lodloated by the
approved judgment of the Commlsslon of Appeals ln the oaso
of ~lsslon Independent Sohool District, et al v. Al?UstrOng,
222 S.K. 201, wherein sol4 oases were olted with approval,
in determining the time of attaohment of the lien to se-
oure taxes of an independent sohool district.
It 1s our oplnlon’that the Farm Credit Admlnlstra-
tlon did not eoGuire title to the land in question, either
legal or equitable until February 24, 1987, and that said
property was oharged with an4 subjeot to a oonstltutlonal
lien to secure state and oounty a4 valorem taxes for the
year 1937; an4 that said lien attached on January 1, 1937,
Honorable Tom tieay, Page 17
despite the foot that the assessment of such taxes was made
subsequent to the aoquisltlon of title by the Farm credit
Admlnlstratlon and did not beoome due an4 payable until
Ootober 1, 1937.
Trusting the foregoing fully snarers your lnqulr-
lea, ws are
Yours very truly
Al'TORNfsyQENmL OF T&ICAS
BY