Merv E. Hilpipre Auction Co. v. Solon State Bank

SCHULTZ, Justice.

Solon State Bank, a perfected secured creditor, appeals from a district court ruling giving Johnson County priority to aúction proceeds for taxes assessed on manufacturing equipment for fiscal years 1980-81 and 1981-82. We hold that the county has priority to the proceeds in the amount of its taxes for fiscal year 1980-81 while the bank has priority to the remaining proceeds.

Long Metal Products, Inc., was a manufacturing concern operating in Johnson County, Iowa. As shown by a deed recorded on April 2, 1981, Long sold the land and buildings where the firm was located to 218…