Texfab, that was well said in a we are responsible for our actions society. Unfortuanately, we live in a society of I pay my taxes they owe me. Hell, you don't even have to pay taxes and still be owed.
This situation has been discussed morally, as well as legally. Morally is was wrong to let that home burn. Legally, the owner was ordered to pay a fee. He did not, so legally they had to make a immoral decision. Let it burn. Sad that our neighbors can't help their neighbors without worrying about the legal consequenses.