Strong v. MacK

BARNARD, P. J.

This is an action to quiet title to two lots in the city of San Diego. The plaintiff claims under a tax deed dated July 9, 1940, which was issued after a sale pursuant to the provisions of section 3897 of the Political Code. The property had been sold to the state because of the nonpayment of the second installment of taxes for the year 1933-1934. The defendant Novotny, the former owner of the property, attacked these sales on the ground that the levy or assessment upon which they were based was void.

At the trial the plaintiff introduced his tax deed and rested. Thé defendant Novotny introduced evidence showing that in the preparation of the budget for the fiscal year 1933-1934, the auditor gave no consideration to, and made no allowance for, anticipated revenue from the payment of delinquent taxes or for revenue from stocks and bonds and solvent credits, and that the final budget submitted to the board of supervisors contained no reference to these matters. An ordinance of the board of supervisors adopting this final budget and a resolution passed by that board setting the tax rate and levying the tax for that year were then introduced in evidence. It was further shown that under the provisions of section 3627a of the Political Code solvent credits and stocks and bonds were assessed for that year at figures which under the statutory rate would produce $6,341.11 from solvent credits and $36,024.56 from stocks and bonds, or a total of $42,365.67 from these sources. It was also shown that during that fiscal year $232,081.96 in delinquent taxes was actually collected and apportioned for county purposes.

The court found in favor of the plaintiff and entered a

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judgment quieting his title, from which the defendant Novotny, sued as John Doe Twenty, has appealed.

The appellant contends that it appears from the evidence that the provisions of section 3714 of the Political Code relative to the preparation and adoption of a budget were not complied with for the year in question in that no consideration was given therein to solvent credits or to stocks and bonds which were taxable at the statutory rate, and none to anticipated collections from delinquent taxes; that the tax rate adopted was, therefore, larger than it needed to have been or would have been had these matters been included in the budget; that the prima facie effect of the respondent’s deed was thus contradicted and overcome by other evidence; and that it follows that the taxes purportedly assessed against this property for that year were illegal and void in their entirety.