Montana Attorney General Opinion 15-91

Opinion No. 91 Schools - School Districts - Abandon- ment--Indebtedness--Bonds--Ta..'1I:es. HELD: Where school districts are ahandoned without action by legal vot- ers or taxpayers of the abandoned dis- trict, and the territory abandoned is annexed to another district on the or- der of bhe Superintendent, or other- wise, taxes may not be levied against the property of the abandoned district to pay outstanding bonded indebted- ness of the district to which the terri- tory of the abandoned district is an- nexed. February 27, 19::\::\. You have requested my opinion on the following question: "If School DiR- trict 59 is abandoned and the territorv comprised in such district is annexe<l to District 6, does the property of the abandoned District 59 become propor- tionately liable for outstanding bonded indebtedness of the district to which it is annexed?" There is a distinction made in the de- cisions between voluntary and involun- tary abandonment of school districts as to the liability of such districts for outstanding bonded indebtedness. Some of the decisions come fl'om states that have specific statutes on the sub- ject but the general rule as given be- low is followed in most of such states. If school districts are consolidated or abandoned by act of the legislature or by petition of the legal residents of such districts, the rule generally ap- plies that in consolidated districts. un- 74 OPIXIOXS OF THE A'l'TORXEY GEXERAL less otherwise prol'ided, the consolidat- ed district takes all the property and assumes all the obligations of the dis- tricts comprising the consolidated dis- trict, In the various decisions there is an inclination to vary this rule if the security of bondholders of any dis- trict comprised in the consolidated dis- t\ict is adYersely affected. St. Louis & S. F. Ry. Co. v. County I<Jxcise Board, 286 Pac. 345 (Okla.); ~'chool District No. 60 v. Crabtree, 2fl.! Pac. 171 (Okla.); Wilson I'. School District, 207 N. W. 810 (Mich.) ; Boise ('ity National Bank v. Ind. School No. 40. 18!) Pac. 47 (Ida.); State ex re!. Tuhey, 128 N. E. 689 (Ind.); 'Yalker v. Bennett, 118 S. E. 779 (S. C.) ; Town of Mt. Pleasant Y. Beckwith, 100 U. S. 514; 25 L. Ed. 699, (S. C.); Abler Y. School District, 124 S. W. 564 (~io.) : PeOI)le Y. Bartlett, 136 N. E. 654 (II!.) : Board v. Board, 105 At!. 452 (1'1. J.) ; Ewing ·Y. Schopf, 11 Ohio App. 370. 'Yhere districts are abandoned with- out any action on the part of legal vot- ers or taxpayers of the abandoned dis- . trict and the territory abandoned is annexed to another district on the or- der of the Superintendent, or other- wise, it is the rule that taxes may not "e levied against property of the aban- !loned district to pay outstanding bond- pd indebtedness of the district to which the territory of the ahandoned district is annexed. School District Y. School District, 204 X. W. 787 (Mich.) ; ):Jjst- ler Y. Eye, 2:31 Pac. 1045 (Okla.); Board Y. Board, 248 Ill. App. 371. This rule, we think, is based on sound poliCy and would govern in your case, and our conclusion is that taxes lllay not be lel'ied against the property of School District Xo. 59 to discharge the outstanding bonded indebtednesf< of School District No. 6.