In re Payne Corp.

OPINION

By FRIEBOLIN, Referee in Bankruptcy.

The question to be determined, in a sentence, is: Is the sales tax statute of Ohio applicable to a sale at public auction of the property of the estate by the trustee in a strict (liquidation) bankruptcy proceeding, pursuant to the order of the Bankruptcy Court?

The Ohio Tax Commission claims that the state statute is applicable and accordingly, by the public sale by the trustee of a truck, the tax upon the amount of the sale must be paid. The trustee claims that the statute does not apply.

The facts are not in dispute. In this strict bankruptcy…