City of Portland v. Pratt

• Decision Date: 17 March 1936
• Citation: 55 P.2d 799,153 Or. 57
• Parties: CITY OF PORTLAND v. PRATT, Sheriff, et al.
• Court: Oregon Supreme Court

55 P.2d 799

153 Or. 57

CITY OF PORTLAND v. PRATT, Sheriff, et al.

Supreme Court of Oregon

March 17, 1936

Department 1.

Appeal from Circuit Court, Multnomah County; James W. Crawford Judge.

Mandamus proceeding by the City of Portland against Martin T. Pratt sheriff and tax collector for Multnomah County, and John M Lewis, Treasurer of Multnomah County. From a peremptory order requiring the sheriff, as tax collector, to file statements showing amounts of interest collected by him since June 9 1933, on taxes levied against property within the city of Portland for 1931 and 1932, and requiring the treasurer of the county to pay to the city of Portland all amounts of interest so collected upon such city taxes, defendants appeal.

Affirmed.

Frank S. Sever, of Portland, Deputy Dist. Atty. (James R. Bain, Dist. Atty., of Portland, on the brief), for appellants.

Frank S. Grant and Willametta McElroy, both of Portland, for respondent.

KELLY Justice.

This case involves a construction of chapter 326, Oregon Laws 1933, pp. 502, 503. By the terms of this act, section 60-720, Oregon Code 1930, as amended by chapter 224, Oregon Laws 1931, p. 352, was amended so as to read as follows: "Sec. 69-720. The first quarter of all taxes levied and charged shall be paid on or before the fifteenth day of March next following, the second quarter on or before the fifteenth day of June next following, the third quarter on or before the fifteenth day of September next following, and the fourth quarter on or before the fifteenth day of December next following. Interest shall be charged and collected on any tax or quarter of a tax, not so paid, at the rate of two-thirds of 1 per cent per month or fraction of a month until paid; provided, that a rebate of 2 per cent shall be allowed on each quarter of the taxes on any separate parcel of real property, or on the personal property of any taxpayer, for each full period of three months by which the payment of such quarter precedes the due date thereof. All taxes or quarters of taxes not paid on or before the fifteenth day of December shall become delinquent. The days or dates herein specified and provided are final as to the payment of all interest charges irrespective of any such day or date falling on a Sunday or other legal holiday. All interest shall be prorated and credited to the several municipal corporations and districts sharing in such taxes. Except as to the prorating and crediting of interest as herein provided, the provisions of this section, as herein amended, shall not become effective until January 1, 1934."

The defendants contend that said chapter 326 did not become effective for any purpose until January 1, 1934. The plaintiff's theory is that the interest prorating clause became effective June 9, 1933, or, in other words, ninety days from the end of the 1933 session of the Legislature.

Defendants urge that to justify the construction, which deprives the county of the revenue it would receive from interest on delinquent city taxes collected during 1933, the intention of the Legislature to effect that result must plainly and clearly appear. We think that such an intention does so appear. We are unable to ascribe any other meaning to the phrase in the last sentence of the section expressly excepting the provision as to the prorating and crediting of interest from the provisions of the section which were not to become effective until January 1, 1934.

Defendants do not contend that the Legislature is without power to effect a diversion of the interest upon taxes from the county to the respective municipalities by and for which the taxes were levied; but argue that the quoted section comprises an entirely new system of tax collection, and that, in ascertaining the meaning of the term "such taxes," we are restricted to a consideration of this one section. We think that we should consider the former statute, the remedy sought by the amendment and the amendment itself. The former section (section 69-720, Oregon Code 1930; Gen.Laws Oregon 1929, c. 132,§ 1, p. 99, as amended by chapter 224, Oregon Laws 1931, p. 352) provided for semiannual payments of taxes on or before the 5th day of May and the 5th day of November, respectively. It also provided that all interest should be for the benefit of the county except that in case of assessments levied by an irrigation or drainage district, the penalties and interest should accrue to and be held for the benefit of the irrigation or drainage district levying the same.

The remedy sought by the amendment under consideration was to afford the taxpayer an opportunity to make quarterly, instead of semiannual, payments and to divert the interest, upon delinquent city or district taxes, from the county to the respective municipalities and districts. No new or distinctive system was introduced.

Originally the present statute upon assessment and taxation was enacted in 1907. The...