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Unredeemed properties would be equally divided among Mr.
Dibble, Mr. Askins, and petitioner based on the properties’ bid
prices. The specific properties were divided randomly, but in a
manner ensuring that each partner got the same total value of
properties, based on their bid prices. The partner to whom an
unredeemed property was assigned would be deeded the property by
the relevant county after the redemption period had expired.
Often, after the properties had been deeded, it was the practice
of Mr. Dibble, Mr. Askins, and petitioner to exchange properties,
primarily for convenience (because, e.g., a property was closer
to a partner’s place of residence, or to equalize the value of
parcels being exchanged). Properties exchanged between the
partners were valued based on the bid prices plus any additional
taxes paid during the period the property had been held.
DAK purchased the Canal at a tax sale in October of 1986 for
a bid price of $100. The Canal was not redeemed and was assigned
to petitioner. In October 1988, the Canal was deeded4 from the
Clarendon County Tax Collector to Colonial Properties, Inc., a
corporation controlled by petitioners. Colonial Properties
deeded the property to Mr. Askins in May 1989, for total
consideration of $159. Mr. Askins subsequently exchanged the
property with Mr. Dibble, and it was deeded to Blue, Inc., a
4 This deed indicated that the taxes due for 1985, 1986, and
1987 totaled $51.39.
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