 National Association of Counties * Washington, D.C. Vol. 31, No. 9 * May 10, 1999 Previous story | Table of Contents | Next story House passed bankruptcy bill By Ralph Tabor
A major bankruptcy reform bill, passed by the House of Representatives last week, would give a higher priority to the payment of tax liens in bankruptcy proceedings. Under the bill, only administrative expenses incurred in Chapter 7 bankruptcy for wages, salaries or commissions would take priority over a property tax lien. The bill (H.R. 833) includes a number of tax provisions supported by NACo, the National Association of County Treasurers and Finance Officers, National League of Cities and other state and local government organizations. Bankruptcy courts also would have to follow state and local laws on property assessments, determining the amount of property taxes due and interest rates on unpaid taxes. Similar legislation (S. 625) has been approved by the Senate Judiciary Committee. The schedule in the Senate is not clear but it is expected to go to the floor later this month. The Senate floor debate could be lengthy since many amendments are likely to be proposed. Senators were urged in the committee markup to hold their amendments until the bill reaches the floor. It is not clear if President Clinton will agree to the legislation without further amendments protecting consumers and curbing the issuance of credit cards. The position of the White House is expected to be made clearer when a House-Senate conference is convened on the two bills. Both bills closely track legislation approved at the end of the last Congress by a House-Senate conference committee. The House approved the conference bill, but the Senate did not have time to consider it. |