City of New Brunswick v. United States, 276 U.S. 547 (1928)

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City of New Brunswick v. United States

No. 260

Argued March 2, 1928
Decided April 9, 1928
276 U.S. 547

CERTIORARI TO THE CIRCUIT COURT OF APPEAL

FOR THE THIRD CIRCUIT

Syllabus

1. Land acquired by the United States Housing Corporation under the Act of 1918 and by the Act of 1919 directed to be sold with reservation of a first lien for unpaid purchase money was not subject to state taxation so long as the Corporation held title as an instrumentality of the United States. P. 555.

2. Purchasers of such land, by making the payment entitling them, under their contracts with the Corporation, to receive deeds subject to their obligation to execute mortgages to secure deferred payments, became the equitable owners, and the taxability of the land, a respects the Corporation, is to be determined as if both the deeds and the mortgages had been executed. Id.

3. In this situation, a city where the land is, the state law permitting, may tax the purchasers upon the entire value of the land and enforce collection by selling their interests, but it cannot sell for such taxes the interest retained by the Corporation for the benefit of the United States as security for unpaid purchase money. Id.

11 F.2d 476 reversed.

Certiorari, 275 U.S. 511, to a decree of the circuit court of appeals, which reversed a decree of the district court, 1 F.2d 741, denying an injunction to restrain sales of lots for city taxes. The suit was brought by the United States Housing Corporation, and joined in by the United States, against the city. The court below directed that the assessments for certain years be cancelled, and that sales for enforcement of the taxes be enjoined.