Town of Avon v. Weststar Bank

Opinion by

Judge CRISWELL. *

In this interpleader action, the Town of Avon (the town) appeals the trial court’s judgment declaring that the lien and security interest of Weststar Bank (the bank) in the proceeds of a tax sale conducted by the state are superior to the tax lien of the town. We reverse.

In September 2002, the Colorado Department of Revenue seized and sold the personal property of SLH Restaurant LLC, d/b/a Cassidy’s Hole in the Wall (the taxpayer), in Avon, Colorado, to satisfy delinquent state sales and wage withholding taxes. The personal property sold for $54,753.50, and after…