Suit hopes to stop counties from taking more than due for delinquent property taxes
Published 5:00 pm Wednesday, June 24, 2020
BEND — A possible class-action civil rights lawsuit was filed this week in Deschutes County Circuit Court that would prevent all Oregon counties from taking more than the amount owed in delinquent property taxes.
According to the lawsuit, filed Tuesday, Oregon law currently allows counties to foreclose on properties for delinquent taxes, sell the property and keep all the proceeds, regardless if it’s more than the amount owed.
“We think that this is an issue of fundamental fairness as well as constitutional law,” said Matthew Hurst, an attorney for the plaintiffs. “There’s a point where you cross the line between getting back what you’re owed and taking something that’s not yours.”
One of the plaintiffs is Tarressa Hutchinson, 19, of Mesa, Arizona.
According to the suit, Hutchinson’s mother, Brande Johnson, died in 2007 owning a 50% interest in a unit at Bend Cascade View Estates on Bachelor Lane in Bend. She had no will and no spouse, and her entire estate passed to her daughter, a minor at the time.
No taxes were paid on the property between 2008 and 2012, when the county filed to foreclose.
When the county auctioned the property in May of last year, the total accrued in property taxes and fees was $4,172.
The property sold for $89,000, meaning ${span}84,828 {/span}remained as surplus, though the county had spent $19,000 preparing the property for sale.
“Rather than return the surplus to Ms. Hutchinson … Deschutes County deposited it in various county funds to be used for county projects,” the lawsuit states.
The county’s attorney did not immediately return a message seeking comment.
The other plaintiff, Timothy Waterman, owned property in Lane County. His property, an undeveloped lot on Clearwater Lane, was taken by the county after $2,033 accrued in property taxes and fines. The property sold for $58,000 in 2017, with the county keeping the $55,967 difference as profit, according to the lawsuit.
The suit was filed with the hope a judge will certify the plaintiffs as a “class” of people, and others can be added to the suit.
Hurst said it’s not yet known how many people have been affected by this issue.
“It could turn out to be a modest class. It could be quite a large class,” Hurst said. “It’s difficult to say what’s been going on and what they’ve done. We don’t know.”
Hurst said recent rulings of the U.S. Supreme Court have strengthened property rights and provided a better understanding of what the living document protects.
Reform has taken hold in some states. Courts in Vermont, New Hampshire and Mississippi have struck down similar system, and the Michigan Supreme Court is currently considering doing so.