Skip to main content
Home

Main navigation

  • NC Bankruptcy Cases
    • Eastern District
    • Middle District
    • Western District
  • NC Courts
    • 4th Circuit Court of Appeals
    • NC Court of Appeals
    • NC Business Court
    • NC Supreme Court Cases
  • Federal Cases
  • Law Reviews & Studies
    • Book Reviews
  • NC Legislative History
  • Student Loan Debt
User account menu
  • Log in

Breadcrumb

  1. Home
  2. Blogs

Bankr. E.D.N.C.: In re Mammoth Grading, Inc.- Objection to Assessed Amount of Property Taxes

Profile picture for user Ed Boltz
By Ed Boltz, 22 May, 2013
Summary: The Debtor had since 1998 complied with the requirements of N.C.G.S. § 105-306 to list for taxes the personal property owned in Wake County. The Debtor was required to file such a disclosure between January 1st and 31st of 2009, but failed to do so, instead filing bankruptcy on February 18, 2009. On September 30, 2009, Wake County subsequently sent the Debtor a notice that it had assessed taxes at a “discovered value” of 125% of the value from the previous year and that the Debtor had, pursuant to N.C.G.S. § 105-312(d), thirty (30) days to contest this value. Neither the Debtor nor the Chapter 7 Trustee challenged this assessment. Eventually, Wake County filed a Proof of Claim asserting priority taxes of f $47,884.36, which represents the original amount plus interest. The Trustee objected to this amount, asserting that Wake County could not just “make up” property valued at 125% of the previous year, instead characterizing this “as both a penalty and a failure to comply with the statutory directive to use the ‘best information available’ in the process of conducting a tentative appraisal.” The bankruptcy court held that 11 U.S.C. § 505(a)(1) provides bankruptcy courts with the authority to “determine the amount or legality of any tax, any fine or penalty relating to a tax, or any addition to tax, whether or not previously assessed, whether or not paid, and whether or not contested before and adjudicated by a judicial or administrative tribunal of competent jurisdiction.” This power is, however, subject to the limitations in 11 U.S.C. § 505(a)(2), including the prohibiting the bankruptcy court from determining “the amount or legality of any amount arising in connection with an ad valorem tax on real or personal property of the estate, if the applicable period for contesting or redetermining that amount under applicable nonbankruptcy law has expired.” Accordingly, the determination by Wake County could not be reviewed. The bankruptcy court also considered whether the extension of time allowed under 11 U.S.C. § 108 would apply, but found that the two year extension would only have allowed an objection until February 11, 2011, when the objection was not filed for nearly another two years in February 2013. Without ruling on the issues, the bankruptcy court, citing In re Read, 692 F.3d 1185, 1190 (11th Cir. 2012), questioned whether § 108 would apply. For a copy of the opinion, please see:

Blog comments

Blog tags
Proof of Claim
Category
North Carolina Bankruptcy Cases
Eastern District

About Us

Mountain View The purpose of the NC Bankruptcy Expert blog is to provide legal professionals with a consolidated resource for updates and case summaries about issues and decisions affecting bankruptcy, foreclosures, mortgages, and debt collection.

 
Lawyer Edward Boltz | Top Attorney Chapter 7

NC Bankruptcy Expert FREE Consultation

We Offer A Free Bankruptcy Consultation which has helped over 70,000 North Carolina families. We serve the entire state of North Carolina.

Proud Member of:












Categories

  • 4th Circuit Court of Appeals
  • Book Reviews
  • District Courts
  • Eastern District
  • Ed Boltz: Bankruptcy Attorney
  • Federal Cases
  • Forms
  • Home
  • Law Reviews & Studies
  • Middle District
  • Mortgage Modification Mediation Documents
  • NC Business Court
  • NC Court of Appeals
  • NC Courts
  • NC Supreme Court Cases
  • News
  • North Carolina Bankruptcy Cases
  • North Carolina District Court Cases
  • North Carolina Exemptions Legislative History
  • Student Loan Debt
  • Student Loan Options and Chapter 13 Bankruptcy
  • Western District
RSS feed
v. 1.2.2, © 2013-2025 ncbankruptcyexpert.com, all rights reserved. Follow @edboltz