Citations
- 88 Ohio App. 268
Full opinion text
Wiseman, J.
This is an appeal on questions of law from a judgment of the Common Pleas Court of Montgomery County.
The sole question before the court is whether delinquent personal property taxes owing to the treasurer of Montgomery county prior to the appointment of a receiver are without preference and are in the same class as claims of general creditors.
The trial court, in an order of distribution, ruled that delinquent personal property tax claims should be prorated with the claims of general creditors. -The, appellant, treasurer of Montgomery county, contends* that the judgmenqt of the trial court is contrary to law in that under several sections of the Code and the? case law in Ohio the claim for delinquent taxes accruing prior to the appointment of a receiver has £ preference over the claims of general creditors.
Section 8339, General Code, in part provides :
“In all cases when property of an employer is placed in the hands of an assignee, receiver or trustee,, claims due for labor performed within the period of three months prior to the time such assignee, receiver or trustee is appointed, shall first be paid out of the trust fund, in preference to all other claims against such employer, except claims for taxes and the cost of administering the trust.” (Emphasis ours.)
Section 11138, General Code, provides:
“Taxes of every description assessed against the assignor upon personal property held by him before his assignment must be paid by the assignee or, trustee out of the proceeds of the property assigned in preference to any other claims against the assignor. Every person who has performed labor as an operative in the service of. the assignor, within twelve months preceding the assignment, shall be entitled to receive out of the trust funds, before the paying of other creditors, the full amount of wages due for such labor, not exceeding three hundred dollars.” (Emphasis added.)
It will be observed that under the first sentence of ;the latter section taxes are paid out of the proceeds