Firm Memoranda

Florida Department of Revenue v. Piccadilly Cafeterias, Inc.: Bankruptcy Transfer-Tax Exemption Requires Sale Pursuant to Confirmed Plan

Date: 06/18/08

On June 16, 2008, in Florida Department of Revenue v. Piccadilly Cafeterias, Inc.,1 the United States Supreme Court (Thomas, J.) reversed a lower-court decision exempting a sale of assets by a debtor in bankruptcy from the imposition and collection of transfer taxes, even though the sale was closed prior to the confirmation of a plan of reorganization,2 and held that the bankruptcy transfer-tax exemption applies only to sales undertaken pursuant to a plan that has already been confirmed by the bankruptcy court.3

Florida Department of Revenue v. Piccadilly Cafeterias, Inc.: Bankruptcy Transfer-Tax Exemption Requires Sale Pursuant to Confirmed Plan (pdf | 53.01 K)