DeChiaro v. New York State Tax Commission

JON 0. NEWMAN, Circuit Judge:

This appeal raises the narrow issue whether liability for a sales tax, which is required by state law to be collected by a seller from his customers, is governed by the “excise” tax or the “trust fund” tax provisions of the Bankruptcy Code. Peter and Susan DeChiaro, the debtors, appeal from a judgment of the District Court for the Northern District of New York (Roger J. Miner, Judge) affirming a decision of the Bankruptcy Court that ruled their sales tax liability to be governed by the “trust fund” tax provision and hence not dischargeable. We affirm.

The Code…