In Re: The Carroll County 2013 Tax Sale: Twin Lakes Regional Sewer District v. Richard C. Ray and Patricia A. Alford
21 N.E.3d 832
Ind.2014Background
- Twin Lakes Regional Sewer District (non-municipal) services Carroll and White counties and collected delinquent sewer fees via liens.
- Richard Ray and Patricia Alford each owed sewer fees and penalties, with liens perfected and certified to the Carroll County Auditor for tax collection.
- A joint tax sale listing was prepared for Ray’s and Alford’s properties to satisfy the unpaid sewer debts.
- Before the tax sale, Ray and Alford petitioned to remove their properties under Indiana Code 13-26-14-4, arguing the district’s lien was the only lien.
- The trial court removed both properties from the tax sale list, concluding the district could not foreclose under 13-26-14-4 when it held the only liens.
- The District appealed under Appellate Rule 56(A), and the Indiana Supreme Court granted transfer to interpret the statute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the lien foreclosure prohibition in IC 13-26-14-4 apply to tax sales? | Ray/Alford: prohibition bars foreclosure when the lien is the sole one. | Twin Lakes: prohibition only applies to traditional foreclosure, not tax sales. | No; prohibition does not apply to tax sales. |
Key Cases Cited
- McCollum v. Uhl, 128 Ind. 304, 27 N.E. 152 (1891) (history of tax foreclosure language; obiter dicta not controlling here)
- Pinnacle Properties Dev. Grp., LLC v. City of Jeffersonville, 893 N.E.2d 726 (Ind. 2008) (statutory interpretation of local government financing and liens)