394 P.3d 460
Wyo.2017Background
- Property in Uinta County owned/encumbered by Sagebrush Broadcasting; multiple claimants include Mark and Della Brock (Brocks), Wyoming Department of Workforce Services (Department), and the IRS.
- Brocks paid Sagebrush’s delinquent real estate taxes in 2010, obtained a Certificate of Purchase for real estate sold for taxes, and paid subsequent taxes through Oct. 2014; they seek about $22,000 (taxes, interest, costs, fees).
- The Department filed multiple liens (first in 2006) for unpaid unemployment compensation contributions, interest and fees totaling about $19,683.47 as of May 2016.
- The IRS filed a federal tax lien in 2009 but conceded that both the Brocks’ and the Department’s liens have priority over the IRS lien; the dispute between Brocks and Department was certified to the Wyoming Supreme Court.
- Statutes at issue: Wyo. Stat. Ann. § 39-13-108(d)(ii) (certificate-of-purchase lien for delinquent taxes: lien is "superior to all other liens except those created by junior tax sales or payment of subsequent taxes by another person") and Wyo. Stat. Ann. § 27-3-511(b) (state lien for unpaid unemployment contributions) with § 27-3-512 (priority language for contributions in certain proceedings).
Issues
| Issue | Plaintiff's Argument (Brocks) | Defendant's Argument (Department) | Held |
|---|---|---|---|
| Whether a certificate-of-purchase lien for delinquent taxes under § 39-13-108(d)(ii) is superior to a Department lien under § 27-3-511(b) for unpaid unemployment contributions | Brocks: § 39-13-108(d)(ii) unambiguously makes their tax-certificate lien superior to all other liens except junior tax sales or subsequent tax payments; Dept. lien is not one of those exceptions | Department: § 27-3-512 gives contributions priority over other claims (except taxes); the statutes conflict/ambiguous and should be read to give the Department priority | Held for Brocks: the certificate-of-purchase lien for taxes is superior to the Department’s lien for unpaid unemployment contributions |
Key Cases Cited
- Barlow v. Lonabaugh, 156 P.2d 289 (Wyo. 1945) (holds purchaser of county’s tax lien takes it with priority over then-existing local assessment liens absent contrary statute)
- Alamo Drainage Dist. v. Board of County Comm’rs, 148 P.2d 229 (Wyo. 1944) (distinguished; held state-held bonds had priority over county tax certificate where statute did not apply to state interests and constitutional considerations favored state school fund)
- Board of County Commissioners v. Bench Canal Drainage District, 108 P.2d 590 (Wyo. 1940) (recognizes general rule that general tax liens are superior to special assessment liens unless statute provides otherwise)