Garrow Oil Corp. v. Bork (In re Bork)

MEMORANDUM DECISION

M. DEE McGARITY, Bankruptcy Judge.

ISSUE

The issue before the court is whether state and federal motor fuel taxes paid by a wholesaler/creditor on account of purchases made by the debtor/retailer are non-dischargeable as to the debtor. The creditor paid the taxes and included this cost on the invoices sent to the debtor for gasoline purchases. These invoices were unpaid at the time the debtor filed his voluntary chapter 7 petition, and the creditor seeks to have the tax portion found nondischargeable under 11 U.S.C. § 523(a)(1)(A).

The creditor argues that the tax portion of…