Barbee v. Oklahoma Tax Commission

WILLIAMS, Circuit Judge.

The question for determination is whether claim filed with the trustee in bankruptcy of an insolvent vendor for unpaid sales tax levied under the Oklahoma Consumers’ Tax Law, Chapter 66, Article 7, Session Laws 1935, for allowance is entitled to preference in payment over the claims of his general creditors.

Objection to its allowance as a preferred claim was made by the trustee, with the contention that the state had no greater right to priority out of the assets of the insolvent debtor’s estate than any other general creditor.

The referee denied right to priority,…