Florida Department of Revenue v. Piccadilly Cafeterias, Inc.: Bankruptcy Transfer-Tax Exemption Requires Sale Pursuant to Confirmed Plan
June 18, 2008
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