Montgomery Cnty. Comm'n v. Fed. Hous. Fin. Agency, s. 13–12615
| Court | United States Courts of Appeals. United States Court of Appeals (11th Circuit) |
| Writing for the Court | MORENO, District Judge |
| Citation | 776 F.3d 1247 |
| Parties | MONTGOMERY COUNTY COMMISSION, on behalf of themselves, and all others similarly situated, Steven L. Reed, Judge of Probate for Montgomery County, Plaintiffs–Appellants, Reese McKinney, Jr., Judge of Probate for Montgomery County, Alabama, on behalf of themselves and all others similarly situated, Plaintiff, v. FEDERAL HOUSING FINANCE AGENCY, as conservator for Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, a federally chartered corporation, Federal Home Loan Mortgage Corporation, a federally chartered corporation, Defendants–Appellees. Chairman Maurice Raines, Upson County Board of County Commissioners, and on behalf of all others similarly situated, Plaintiff, Athens–Clarke County Unified Government, Athens–Clarke County Unified Government, by and through Nancy Denson, Chair of the Commission and Mayor, Athens–Clarke County Unified Government, Georgia, Clayton County, Clayton County, by and through Eldrin Bell, Chairman, Board of Commissioners, Clayton County, Georgia, Sumter County, Sumter County, by and through Randy Howard, Chairman, Board of Commissioners, Sumter County, Georgia, Augusta, Georgia, Augusta, Georgia, by and through Deke Copenhaver, Chair of the Commission and Mayor, Augusta, Georgia, Butts County, Butts County, by and through Roger McDaniel, Chairman, Board of Commissioners, Butts County, Georgia, Upson County, Upson County, by and through Maurice Raines, Chairman, Board of Commissioners, Upson County, Georgia, Plaintiffs–Appellants, v. Federal Housing Finance Agency, as Conservator for Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, A Federally Chartered Private Corporation, Federal Home Loan Mortgage Corporation, A Federally Chartered Corporation, Defendants–Appellees. Charlie Green, etc., Plaintiff, Linda Doggett, as Clerk of the Court for Lee County, Florida, and on behalf of all others similarly situated, Plaintiff–Appellant, v. Federal Housing Finance Agency, as Conservator for Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, a federally chartered corporation, a.k.a. Fannie Mae, Federal Home Loan Mortgage Corporation, a federally chartered corporation, a.k.a. Freddie Mac, Defendants–Appellees. Daniel W. Massey, as Clerk of the Superior Court of Chatham County, Georgia, individually, and on behalf of all others similarly situated, Plaintiff–Appellant, Gabrielle Summe, as Clerk of the Kenton, County, Kentucky, Interested Party–Appellant, v. Federal Housing Finance Agency, Intervenor–Appellee, Federal National Mortgage Association, a.k.a. Fannie Mae, Federal Home Loan Mortgage Corporation, Defendants–Appellees. Randolph County, a duly organized county of the State of Alabama, on behalf of itself and all others counties in the state of Alabama similarly situated, Plaintiff–Appellant, v. Federal National Mortgage Association, a federally chartered private corporation, Federal Home Loan Mortgage Corporation, a federally chartered private corporation, Federal Housing Finance Agency, as conservator for Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, Defendants–Appellees. Floyd County, Georgia, a Political Subdivision of the State of Georgia, Plaintiff–Appellant, v. Federal Housing Finance Agency, a Conservator for Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, a Federally Chartered Corporation, Federal Home Loan Mortgage Corporation, a Federally Chartered Corporation, Defendants–Appellees. |
| Docket Number | 13–13150,Nos. 13–12615,13–14094.,13–13897,13–12637,13–13267,s. 13–12615 |
| Decision Date | 16 January 2015 |
776 F.3d 1247
MONTGOMERY COUNTY COMMISSION, on behalf of themselves, and all others similarly situated, Steven L. Reed, Judge of Probate for Montgomery County, Plaintiffs–Appellants
Reese McKinney, Jr., Judge of Probate for Montgomery County, Alabama, on behalf of themselves and all others similarly situated, Plaintiff
v.
FEDERAL HOUSING FINANCE AGENCY, as conservator for Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, a federally chartered corporation, Federal Home Loan Mortgage Corporation, a federally chartered corporation, Defendants–Appellees.
Chairman Maurice Raines, Upson County Board of County Commissioners, and on behalf of all others similarly situated, Plaintiff
Athens–Clarke County Unified Government, Athens–Clarke County Unified Government, by and through Nancy Denson, Chair of the Commission and Mayor, Athens–Clarke County Unified Government, Georgia, Clayton County, Clayton County, by and through Eldrin Bell, Chairman, Board of Commissioners, Clayton County, Georgia, Sumter County, Sumter County, by and through Randy Howard, Chairman, Board of Commissioners, Sumter County, Georgia, Augusta, Georgia, Augusta, Georgia, by and through Deke Copenhaver, Chair of the Commission and Mayor, Augusta, Georgia, Butts County, Butts County, by and through Roger McDaniel, Chairman, Board of Commissioners, Butts County, Georgia, Upson County, Upson County, by and through Maurice Raines, Chairman, Board of Commissioners, Upson County, Georgia, Plaintiffs–Appellants
v.
Federal Housing Finance Agency, as Conservator for Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, A Federally Chartered Private Corporation, Federal Home Loan Mortgage Corporation, A Federally Chartered Corporation, Defendants–Appellees.
Charlie Green, etc., Plaintiff
Linda Doggett, as Clerk of the Court for Lee County, Florida, and on behalf of all others similarly situated, Plaintiff–Appellant
v.
Federal Housing Finance Agency, as Conservator for Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, a federally chartered corporation, a.k.a. Fannie Mae, Federal Home Loan Mortgage Corporation, a federally chartered corporation, a.k.a. Freddie Mac, Defendants–Appellees.
Daniel W. Massey, as Clerk of the Superior Court of Chatham County, Georgia, individually, and on behalf of all others similarly situated, Plaintiff–Appellant
Gabrielle Summe, as Clerk of the Kenton, County, Kentucky, Interested Party–Appellant
v.
Federal Housing Finance Agency, Intervenor–Appellee
Federal National Mortgage Association, a.k.a. Fannie Mae, Federal Home Loan Mortgage Corporation, Defendants–Appellees.
Randolph County, a duly organized county of the State of Alabama, on behalf of itself and all others counties in the state of Alabama similarly situated, Plaintiff–Appellant
v.
Federal National Mortgage Association, a federally chartered private corporation, Federal Home Loan Mortgage Corporation, a federally chartered private corporation, Federal Housing Finance Agency, as conservator for Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, Defendants–Appellees.
Floyd County, Georgia, a Political Subdivision of the State of Georgia, Plaintiff–Appellant
v.
Federal Housing Finance Agency, a Conservator for Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, a Federally Chartered Corporation, Federal Home Loan Mortgage Corporation, a Federally Chartered Corporation, Defendants–Appellees.
Nos. 13–12615
13–13267
13–12637
13–13897
13–13150
13–14094.
United States Court of Appeals, Eleventh Circuit.
Jan. 16, 2015.
Warren Tavares Burns, Katherine Leigh Ireland Hacker, Terrell W. Oxford, Susman Godfrey, LLP, Dallas, TX, Charles D. Gabriel, Samuel Parker Pierce, JR., Pierce–Gabriel Partners, LLC, Roswell, GA, Henry H. Hutchinson, James Northcutt Walter, JR., Capell & Howard, PC, Montgomery, AL, Carol Hambrick Lahman, Larry D. Lahman, Mitchell & Declerck, PLLC, Enid, OK, Elaine A. Ryan, Patricia Nicole Syverson, Bonnett Faitbourn Friedman & Balint, Phoenix, AZ, Howard J. Sedran, Levin Fishbein Sedran & Berman, Philadelphia, PA, Joseph J. Siprut, Siprut, PC, Chicago, IL, Stewart M. Weltman, Stewart M. Weltman LLC, Chicago, IL, for Plaintiff–Appellant.
Howard N. Cayne, Michael Alexander Johnson, Asim Varma, Arnold & Porter, LLP, Washington, DC, Wesley B. Gilchrist, Harlan Irby Prater, IV, Lightfoot Franklin & White, LLC, Birmingham, AL, Stephen E. Hart, Federal Housing Finance Agency, Washington, DC, for Defendant–Appellee.
Appeals from the United States District Court for the Middle District of Florida, the Southern District of Georgia, the Middle District of Alabama, the Middle District of Georgia, and the Northern District of Georgia. D.C. Docket No. 2:12–cv–00885–MHT–WC, D.C. Docket No. 5:12–cv–00355–MTT, D.C. Docket No. 2:12–cv–00553–JES–DNF, D.C. Docket No. 4:12–cv–00102–DHB–GRS, D.C. Docket No. 3:12–cv–00886–WKW–SRW, D.C. Docket No. 1:13–cv–00056–TWT.
Before MARTIN and ANDERSON, Circuit Judges and MORENO,* District Judge.
Opinion
MORENO, District Judge:
This consolidated appeal arises from six district court actions in this circuit. In each of the six cases, the district court ruled in favor of the Appellees, the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), and the Federal Housing Finance Agency (collectively referred to as the “federal entities”). Appellants' position in this appeal is that the state taxes normally imposed on real estate transfers apply when the federal entities transfer real property in their respective states. The federal entities have not paid the transfer taxes, citing their Congressional charter exemptions from “all taxation.” These statutory exemptions contain an exception allowing states to impose real estate taxes on the federal entities, and Appellants contend their transfer taxes fall into that exception. Appellants
also make the constitutional argument that even if the exemptions preclude the states from imposing the transfer taxes, the exemptions themselves are unconstitutional under the Commerce, Necessary and Proper and Supremacy Clauses. The district court in each case, as have several Circuit Courts of Appeal,1 found the federal entities are exempt from paying transfer taxes, and the statutes are otherwise constitutional. We agree and affirm.
I. Factual Background
A. The Federal Entities and the Statutory Charter Exemption from Taxation
During the Great Depression, Congress created Fannie Mae to “establish secondary market facilities for residential mortgages,” to “provide stability in the secondary market for residential mortgages,” and to “promote access to mortgage credit throughout the Nation.” 12 U.S.C. § 1716. Later, Congress chartered Freddie Mac for substantially the same mission, including to provide ongoing assistance to the secondary market for residential mortgages, to strengthen and support mortgages on housing for low and moderate income families, by increasing the liquidity of the market, and to promote access to mortgage credit. Id. at § 1451 et seq. These federally chartered entities purchase and securitize residential mortgages, which generates additional liquidity for mortgage lending. See id. at §§ 1452(c), 1454(a)(1), 1717(b)(1), 1719(d). During the 2008 financial crisis, Congress created the Federal Housing Finance Agency to regulate Fannie Mae and Freddie Mac, among other entities. Id. at § 4511. The Federal Housing Finance Agency is an independent federal agency, created by the Housing and Economic Recovery Act of 2008. Id. at §§ 4511, 4617 et seq. In the wake of the 2008 financial crisis, Fannie Mae and Freddie Mac were placed into the Federal Housing Finance Agency's conservatorship. Id. at § 4617. As the conservator, the Federal Housing Finance Agency has the statutory power to “operate” Fannie Mae and Freddie Mac with the statutory mission of “preserv[ing] and conserv[ing] the [ir] assets and property.” Id. at § 4617(b)(2)(B)(iv). The Federal Housing Finance Agency, as conservator, has the authority to “transfer or sell any asset or liability of the regulated entity.” Id. at § 4617(b)(2)(G).
Congress enacted statutory exemptions from taxation for all three entities. The statutes are as follows:
1. Fannie Mae's Exemption at 12 U.S.C. § 1723a(c)(2)
[Fannie Mae], including its franchise, capital, reserves, surplus, mortgages, or other security holdings, and income shall be exempt from all taxation now or hereafter imposed by any State, ... or by any county, ... except that any real property of the corporation shall be subject to State ... county ... or local taxation to the same extent as other real property is taxed.
2. Freddie Mac's Exemption at 12 U.S.C. § 1452(e)
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