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BASHAW v. BEAR CREEK VALLEY SANITARY AUTH.

TC 1175; SC 25547.

597 P.2d 822 (1979)

287 Or. 113

Lucy M. BASHAW, E.R. Bashaw, Robertson E. Collins, Frank A. Hopewell, Elinor A. Hopewell, Joyce Witham, Rodney A. Witham, Frank R. Alley, Edward H. Collins, and Robert W. Hague, Respondents, Department of Revenue, State of Oregon, Intervenor, v. BEAR CREEK VALLEY SANITARY AUTHORITY, Appellant.

Supreme Court of Oregon, In Banc.

Decided July 12, 1979.

Attorney(s) appearing for the Case

Manville M. Heisel, Medford, argued the cause and filed a brief for appellant.

Steven A. Zamsky of Giacomini, Jones & Zamsky, Klamath Falls, argued the cause and filed a brief for respondents.

Ira W. Jones, Senior Asst. Atty. Gen., Salem, argued the cause for intervenor. With him on the brief was James A. Redden, Atty. Gen.

LINDE, Justice.

The question to be decided is whether defendant sanitary authority must use federal grant money and other unused capital to make payments on its bond issues before it may exercise its taxing power for this purpose.

Plaintiffs, ten owners of property taxable by the Bear Creek Valley Sanitary Authority, appealed to the Oregon Tax Court pursuant to ORS 294.485 for a declaration that a proposed tax levy for fiscal year 1977-1978 of the sanitary...

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