91 Kan. 820 | Kan. | 1914
The opinion of the court was delivered by
The plaintiff sued to enjoin the collection of a tax on three land contracts. The first was a bond for a deed which recited that the plaintiff and wife were held and firmly bound to one J. H. Duston in the sum of $54,000; that the parties of the first part had agreed to convey to Duston certain described lands for $25,000 to be paid, $1200 cash in hand, $3000 on furnishing abstract showing perfect title, $2000 March 1 of each year from 1911 to 1915, inclusive, and $11,000 on or before March 1, 1919, all deferred payments to draw
The plaintiff argues that these instruments evidence mere options; that as he can not enforce them they do not show an indebtedness and therefore are not taxable. True, it was stipulated that he was to have no enforceable right against Duston “for any balance that might be unpaid” by him, but this does not show that he had no enforceable rights of any kind by virtue of the bond. Suppose Duston should stop paying and refuse to vacate, then Golden could put him off and keep all that had been paid, while until the payments ceased he would have an arrangement by which the taxes would be paid, more principal and interest would be coming due, and insurance would be maintained for his benefit. The situation is so nearly identical with that presented in Mc-Gregor v. Ireland, 86 Kan. 426, 121 Pac. 358, that much of the language there used would be applicable here. While the plaintiff may possess no right to proceed against Duston for a debt, he has the right to receive the payments of principal and interest, and the benefit of the payment of the taxes and insurance, and as he retains the title to the land until sufficient payments shall have been made to require a deed and a mortgage back, each payment increases the security and lessens the likelihood of Duston’s abandoning the contract and the land. In short, the plaintiff, by virtue of the bond, owns the right to receive all future payments, the right to retain those already made, and the right to dispossess Duston upon default. - What such a contract may at any given time be worth must depend on many things which the taxing officers should consider, but
The other contracts are even more clearly taxable than the one already discussed.
The judgment is therefore affirmed.