Oregon2
[65-1 USTC
¶9378]In the Matter of Gust
Elis
Johnson, Bankrupt
U.
S. District Court,
Dist.
Ore.
, No. B64-2545,
4/6/65
[1954 Code Secs. 6321 and 6323]
Tax liens: Priority:
Oregon
personal property tax.--The government's lien for taxes, which arose
on
August 16, 1963
, was superior to the
Oregon
county personal property tax lien, which did not become choate until
October 14, 1963
. Although
Oregon
personal property was assessed on January 1, 1963, the amount of the tax
was not known until October 14, 1963.
Sidney I.
Lezak, United States Attorney, Jack Collins, Assistant United States
Attorney, Eli Blumenfeld, Regional Counsel Attorney, John D. Picco,
Staff Assistant to the Regional Counsel, Internal Revenue Service,
Portland, Ore., for U. S. George Van Hoomissen, District Attorney, 723
Pittock Block, 921 S. W. Washington St., Portland, Ore., Charles S.
Evans, 1401 N. E. 68th Ave., Portland, Ore., for County of Multnomah.
Findings
of Fact, Conclusions of Law and Order Establishing Priority of Tax
Claims
JOHNSON, JR.,
Referee:
This matter
having come on for hearing on March 29, 1965, before the Honorable
Folger Johnson, Jr., Referee in Bankruptcy, at Portland, Oregon, upon
the joint petition of the United States Government and the County of
Multnomah, State of Oregon, for a determination as to when the amount of
the county personal property tax was established and became choate under
the rule in United States v. City of New Britain [54-1 USTC ¶9191],
347 U. S. 81 (1954) and for an order establishing the tax priorities
involved herein;
The United
States appearing by its attorneys, Sidney I. Lezak, United States
Attorney, Jack Collins, Assistant United States Attorney, John D. Picco,
Staff Assistant to the Regional Counsel, Internal Revenue Service, and
Eli Blumenfeld, Regional Counsel Attorney, Internal Revenue Service, and
being represented in Court by John D. Picco and Eli Blumenfeld;
The
County
of
Multnomah
,
Oregon
, appearing by its attorneys, George Van Hoomissen, District Attorney,
and Charles S. Evans, Deputy District Attorney, and being represented in
Court by Charles S. Evans;
A partial
stipulation of facts having been executed by counsel for the parties
appearing at the hearing and having been admitted into evidence by the
Court, certain exhibits also having been stipulated and received into
evidence by the Court, and witnesses having been sworn and having
testified;
The Court
having considered the partial stipulation of facts, the stipulated
exhibits, the testimony offered at the hearing, and the opening and
closing statements of Counsel;
And the Court
being fully advised in the premises, does now make the following
findings of fact and conclusions of law.
Findings
of Fact
1. The
United States of America
made an assessment against the bankrupt on
August 16, 1963
, for unpaid income taxes in the amount of $1,227.45, plus interest,
which assessment has not been satisfied.
2.
Multnomah County
,
Oregon
, imposed a personal property tax on the bankrupt's personal property
for taxable year 1963-64 in the amount of $252.37, including interest,
which tax has not been satisfied; said property being the identical
personal property in the bankrupt's estate.
3.
Multnomah
County
asserts a specific lien with the identity of the lienor and the property
subject to the lien being established.
4. Pursuant to
Oregon Revised Statutes section 308.250, all personal property in
Multnomah
County
was assessed on
January 1, 1963
.
5. The
assessment roll for
Multnomah
County
, containing the appraisal values of property within the County, was
closed on
May 1, 1963
.
6. All taxing
districts in
Multnomah
County
submitted their levies, pursuant to Oregon Revised Statutes section
310.060, to the property tax assessor by
July 15, 1963
.
7. The millage
rate applied to the appraised values was determined by the assessor on
August 15, 1963
.
8. The millage
rate and the appraised values of the property in Multnomah County were
submitted to the data processing center on August 15, 1963 and on the
same date said center returned to the assessor a prelist with a
computation of the property tax for each individual in Multnomah County
subject to property tax and whose property was assessed on January 1,
1963.
9. During the
period from
August 15, 1963
to
October 14, 1963
, the assessor was engaged in checking the accuracy of the computation
by the data processing machine and in posting the property tax to the
ledger sheet of each individual taxpayer in
Multnomah
County
.
10. In
compliance with Oregon Revised Statutes section 311.105, on
October 14, 1963
, Multnomah County Tax Assessor certified to the county clerk that the
assessment roll was accurate.
11. On
October 14, 1963
, the county clerk issued a warrant which was attached to the assessment
roll authorizing the Tax Collector to collect the taxes set forth in
said assessment roll, all in compliance with Oregon Revised Statutes
sections 311.110 and 311.115.
Conclusions
of Law
12. Pursuant
to section 6321 of the Internal Revenue Code of 1954, the
United States of America
has a lien on the property of the bankrupt, which lien arose on
August 16, 1963
.
13. Under the
test set forth in the United States v. City of New Britain [54-1
USTC ¶9191], 347 U. S. 81 (1954), Multnomah County's property tax lien
does not become choate until the identity of the lienor, the subject of
the lien and the amount of the lien are all established.
14. In
accordance with the rule set forth in United States v. Security Trust
and Savings Bank [50-2 USTC ¶9492], 340 U. S. 47 (1950), the state
statutory personal property lien date of January 1, 1963 cannot be the
date that the lien of Multnomah County becomes choate since the amount
of the property tax was not known at that time and the concept of
relation-back does not apply against the United States Government.
15. The amount
of
Multnomah
County
's property tax for the 1963-64 year was established on
October 14, 1963
when the
County
Assessor
engaged in his final act of certifying to the accuracy of the assessment
roll.
16.
Multnomah
County
's property tax lien became choate on
October 14, 1963
, when the last element, the amount of the property tax, was established
under the test set forth in the
United States
v. City of
New Britain
, supra.
17. The income
tax lien of the
United States
which arose on
August 16, 1963
, is superior to the
Multnomah
County
1963-64 property tax lien which became choate on
October 14, 1963
.
Order
ACCORDINGLY,
IT IS ORDERED that the parties involved herein be given the following
tax priorities:
1.
United States
(Including interest from August
16, 1963 to
August 11, 1964
, the
date of bankruptcy) .................. $1,227.45
2.
Multnomah
County
(Including interest to August 11,
1964) ................................ $ 252.37
and that the claim of the
United States
be paid first, balance if any to be then applied in satisfaction of the
claim of
Multnomah
County
.
