Newport v. Tennessee, Department of Revenue (In re Boat Land Co.)

MEMORANDUM

KEITH M. LUNDIN, Bankruptcy Judge.

The question presented is whether the Chapter 7 trustee’s avoidance power under *4811 U.S.C. § 545(2) defeats the State of Tennessee’s perfected tax lien on personal property. The state’s lien prevails. The following are findings of fact and conclusions of law. Fed.R.Bankr.P. 7052.

I

Boat Land Company, Inc. is a Tennessee Corporation that engaged in business in Davidson County, Tennessee. Boat Land failed to pay sales and franchise taxes. On March 11, 1990 the Commissioner of Revenue filed a Notice of State Tax Lien against Boat Land with the Register of…