Case Nos. 04-71577, 04-71578, 04-71579, 04-71580, 04-71581, 04-71582, 04-71583, 04-71585, Substantively Consolidated Under Case No. 04-71577.United States Bankruptcy Court, E.D. Oklahoma.
September 27, 2005
ORDER
TOM CORNISH, Bankruptcy Judge
On the 7th day of September, 2005, the Joint Stipulation Re: Objection to Claim of Washington County (Arkansas) Tax Collector, filed by the Trustee and Washington County (Ark) Tax Collector (“Washington County”); came on for hearing. Appearances were entered by Sam Bratton, Special Claims Counsel for Trustee, Karen Walsh, Chapter 7 Trustee, and George Butler, Jr., Attorney for Washington County. After review, this Court finds that the Stipulation should be approved and is adopted by the Court.
Washington County filed a proof of claim on September 2, 2004, for a priority claim of $29,500.75. The claim consists of $14,766.92 for 2003 personal property taxes, due October 10, 2004, and $14,733.95 for personal property taxes due October 10, 2005. Washington County filed another proof of claim on October 27, 2004, in the amount of $14,643.85 for 2004 personal property taxes.
On November 22, 2004, this Court entered an order approving the sale of property of the estate, including the property subject to the Washington County personal property taxes, to CVM, Inc.
On March 18, 2005, Debtors filed an objection to the claim of Washington County. Washington County responded to the Debtors’ objection, stipulating that the 2003 taxes were paid in full and that the balance due for 2004 taxes is $14,344.18.
The Sale Order provides on page seven (7):
M. Debtor will pay all current post-petition, pre-closing operating expenses prior to Closing. The Debtor will not pay any bills for current, pre-closing operating expenses
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received after Closing from the sales proceeds or the retained cash, i.e., any “pass-through” bills not paid by the Debtor before Closing will be paid by CVM Inc.
Trustee asserts that the payment of the 2004 taxes is the responsibility of the buyer, CVM Inc., pursuant to the sale Order. Trustee argues that payment of the 2004 taxes is a current, pre-closing operating expense received after the closing which is the responsibility of the buyer. Trustee states that the 2004 taxes did not become assessable until after closing, and thus are not payable by the Debtors or the estate. This Court agrees with the Trustee, and finds that the 2004 taxes due to Washington County are the responsibility of the buyer, CVM, Inc. Therefore, the Joint Stipulation should be approved.
IT IS THEREFORE ORDERED that the Joint Stipulation Re: Objection to Claim of Washington County (Arkansas) Tax Collector is approved.
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