Justia Tax Law Opinion Summaries

Appellants Wsbaldo Valdez and Linda Vargas owned property in joint tenancy and neglected to pay the 2005 property taxes. In 2006, Appellee Mae Ouellette purchased the property at a tax sale and later applied for a tax deed. She served notice on Vargas but not on Valdez. In 2008, Ouellette received a tax deed. Valdez and Vargas filed a petition to quiet title, for ejectment, and damages. They then filed a motion for partial summary judgment asserting the tax deed was void for failure to serve Valdez, and Valdez could redeem the entire property. In Ouellette's counter-motion for summary judgment and response to Appellee's motion for partial summary judgment, her two main assertions were: (1) Valdez and Vargas were either an unincorporated association or a partnership and service on Vargas was good service on Valdez; and (2) the service on Vargas was at least valid and the tax deed was effective as to her interest, thereby severing the joint tenancy. Ouellette argued she and Valdez were tenants in common. The trial court held that service on Valdez was ineffective but agreed with Ouellette that Valdez could not redeem the entire property, and Valdez and Ouellette were tenants in common. The Oklahoma Court of Civil Appeals affirmed. Upon review, the Supreme Court held that service of a notice for application of tax deed is mandatory and must be made on all parties according to the applicable statute. Failure to make such service will render any issued tax deed void in its entirety. Accordingly, Valdez had the right to redeem the entire property. The Court reversed the trial court's decision.

Plaintiff-Appellant Michael Thomas filed suit in district court seeking a declaratory judgment that H.B.1804, the Oklahoma Taxpayer and Citizens Protection Act of 2007, was unconstitutional. Plaintiff sued Brad Henry, Governor of Oklahoma, and the Board of County Commissioners of Tulsa County. Defendants filed a motion to dismiss, claiming that Plaintiff lacked standing to sue. The trial judge denied the defendants' motion to dismiss. Plaintiff filed a motion for summary judgment. The trial judge partially granted the motion for summary judgment, finding that part of the Act violated the single-subject rule. The trial judge severed that portion from the remainder of H.B.1804 and held that the remainder of H.B.1804 did not violate the Oklahoma constitutional provisions urged by the plaintiff. Plaintiff appealed and Defendant filed a counter-appeal, arguing that the trial court lacked jurisdiction because the plaintiff lacked taxpayer standing to challenge the Act. Upon careful consideration of the arguments by both sides, and of the applicable legal authority, the Supreme Court agreed with the trial court's assessment that H.B.1804 does not otherwise violate the Oklahoma constitutional provisions as urged by Plaintiff. The Court declined "to concern itself with a statute's propriety, desirability, wisdom or its practicality as a working proposition; such questions are plainly and definitely established by fundamental law as functions of the legislative branch of government." The Court affirmed the trial court's holding for all but one section of H.B.1804, and remanded the case for further consideration.