In Re Microage Corp.

UNDER ADVISEMENT MEMORANDUM DECISION RE: DEBTORS’ OBJECTION TO CLAIMS OF ARIZONA DEP’T OF REVENUE AND MOTION FOR DETERMINATION OF DEBTORS’ RIGHT TO TAX REFUND

CHARLES G. CASE, II, Bankruptcy Judge.

I. The Issue

This case squarely presents whether this Court can constitutionally require the State of Arizona (“State”) to litigate Debt- or’s entitlement to a disputed tax refund in bankruptcy court or whether it is immune from such proceeding. The following issues have been addressed by the parties: 1) whether the States ceded sovereign immunity to the federal government under the “plan” of the…