MURRAY COUNTY v. HOMESALES, INC.
2014 OK 52
| Okla. | 2014Background
- Foreclosure actions produced sheriff's deeds; Chase bought at sheriff's sales but deeds were issued to Homesales (Chase’s subsidiary) or FNMA, not to Chase.
- Deeds state exemptions from documentary stamp tax; no documentary taxes paid.
- Counties sued to collect taxes and/or challenge exemptions under the Documentary Stamp Tax Act (DSTA).
- District court granted partial summary judgment finding no exemption, enabling tax collection; interlocutory appeal granted.
- Court holds Counties lack statutory enforcement authority but have standing to challenge exemptions; sale/consideration issues require further proof; remands for proceedings consistent with opinion.
- The ultimate holding: Counties cannot be compensated for taxes via enforcement power, but can challenge exemptions; however, no sale occurred under record, so no taxes due; remand for further factual development.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Counties have statutory enforcement authority under the DSTA | Counts rely on general sue-and-be-sued power | OTC/statutes assign enforcement to OTC, not counties | Counties lack enforcement authority under the DSTA |
| Whether Counties have standing to seek declaratory relief | Despite lack of enforcement authority, standing to challenge exemptions | No standing because no enforcement avenue | Counties have standing to pursue declaratory relief on exemptions |
| Whether post-foreclosure conveyances were sales subject to DSTA | Exemptions claimed to avoid taxes; challenged transfers may be sales | Transfers may be exempt if no sale/consideration exceeds $100 | Record insufficient to prove sale/consideration; need further proceedings |
| Whether the conveyances exceeded $100 in consideration | Consideration beyond $100 would trigger tax | No proof of >$100 consideration; exemption applies | Record fails to show >$100 consideration; merits not proven. |
Key Cases Cited
- Oklahoma Tax Comm'n v. Texaco Exploration & Prod., Inc., 131 P.3d 705 (Okla. 2005) (uniform tax procedures; OTC enforcement authority primary)
- Independent School Dist. No. 9 v. Glass, 639 P.2d 1233 (Okla. 1982) (standing to seek injunctive relief when statutory remedy inadequate)
- Jim Walter Homes, Inc. v. County Clerk of Okfuskee County, 734 P.2d 849 (Okla. Civ. App. 1986) (exchange of foreclosure judgment for sheriff's deed may constitute consideration under DSTA)
- Founders Bank and Trust Co. v. Upsher, 830 P.2d 135 (Okla. 1992) (consideration and sale concepts in tax transfers; enforceability context)
- Johnston v. Oklahoma Tax Comm'n, 497 P.2d 1295 (Okla. 1972) (definition of sale/consideration and tax implications)