Document: 377 U.S. 351 84 S.Ct. 1267 12 L.Ed.2d 370 UNITED STATES, Petitioner,v.STATE OF VERMONT et al. No. 509. Argued April 21, 1964. Decided June 1, Daniel M. Friedman, Washington, D.C., for petitioner. Charles E. Gibson, Jr., St. Johnsbury, Vt., respondents. Mr. Justice STEWART delivered the opinion of Court. 1 This case involves a conflict between two liens upon property solvent Vermont taxpayer—a federal tax lien arising under provisions 26 U.S.C. §§ 6321 and 63221 an antecedent state based on law worded in terms virtually identical to those statutes. 2 On October 1958, State made assessment demand Cutting & Trimming, Inc., withheld income taxes $1,628.15. The applicable statute, modeled comparable enactments, provides that if employer required withhold fails pay same after demand, 'the amount, including interest such together with any costs they may accrue addition thereto, shall be favor all rights property, whether real or personal, belonging employer,' '(s)uch arise at time is by commissioner continue until liability sum, costs, satisfied becomes unenforceable.'2 3 More than three months later, February 9, 1959, Commissioner Internal Revenue against Trimming $5,365.96 due Federal Unemployment Tax Act. Under 6322, this amount became 'a United States person,' which arose 'at so assessed unenforceable reason lapse time.'3 4 May instituted suit court joining as defendant Chittenden Trust Company, Burlington bank which, result writ served 25, disclosed it had hand sums owing Trimming. 23, judgment was entered Company. 5 In 1961, brought present action District Court foreclose held Vermont's answer alleged gave its priority over lien. cross-motions pleadings, priority, directed Company apply moneys first payment principal lien, balance States. 206 F.Supp. 951. 6 Appeals affirmed, reasoning that, Court's decision v. New Britain, 347 81, 74 367, 98 L.Ed. 520, '(i)t would seem general 6322 thus sufficiently 'choate' prevail later specific local almost identically statute must also enough prime equally lien,' 317 F.2d 446, 452. Accordingly, appellate applied 'cardinal rule' laid down Chief Marshall Rankin Schatzell Scott, Wheat. (25 U.S.) 177, 179, 592 (1827): 'The principle believed universal prior gives claim, entitled satisfaction, out subject binds * *." Id., 450. Because importance question administration revenue laws, we granted certiorari. 375 940, 351, 11 271. For reasons follow, affirm Appeals. 7 Both parties urge here governed 367. case, involving conflicting municipal statutory liens, each contested depend attached choate.' 86, 370. determining choateness involved, 'accepted(ed) (state court's) holding specificity City's since pieces water rent due,' but went stress 'liens perfected sense there nothing more done have choate lien—when identity lienor, are established. and, above indicated, perfected.' 84, 369. claim fact completely 'perfected' Britain. Opposing urges different standards even where, here, statutes every material respect. argument, short, order obtain cannot, like attach taxpayer's rather, specifically identified portions property. 8 requirement competing take stems from Security Savings Bank, 340 47, 71 111, 95 53. There, attachment no right proceed unless obtained within years extension provided junior arisen date ground '(n)umerous contingencies might prevent ever becoming awarded recorded. Thus contingent inchoate—merely lis pendens notice perfect exists.' 50, 113. rationale has been where garnishment Liverpool London Globe Ins. Co., 348 215, 75 247, 99 268,4 defects require according series cases mechanics' liens.5 9 setting decision, however, state: 10 'In kindred matter, i.e., Rev.Stat. § 3466, never sufficient defeat merely show effective protect lienor others Government, taking subsequent steps enforcing it. If purpose insure prompt certain collection delinquents fulfilled, similar rule here.' U.S., 51, S.Ct., Relying statement, us read establishing proposition not only exists', explicit R.S. 3466 claims situations insolvency.6 particularly, suggested issue did meet 'specificity' funds already come into existence. argument discriminate insolvent debtor 3466. Section face permits exception whatsoever command '(w)henever person indebted debts satisfied.' applies insolvent's taxes, secured Gilbert Associates, 345 361, 73 701, 97 1071, without questioning identified, definite, accorded subsequently that: 13 type requires reducing possession, theory longer possession debtor. taxpayer divested Town either title possession. Town, therefore, general, unperfected lien.' 366, 704.7 14 commissioner's clearly standard, nor, far goes, Company.8 But Britain '(t)he possession', makes quite clear States' existing 6322.9 'When insolvent, Congress expressly given indebtedness States, otherwise, Revised Statutes, 31 191. circumstance, protected revenues imposing absolute (citing 701; Waddill, Holland Flinn, 323 353, 65 304, 89 294). Where failed provide although free pursue whole debtor's wherever situated.' 85, 15 It undisputed State's meets test established.' Moreover, unlike subordinate arose,10 true here11 force judgment, paid when due, administrative officials seize satisfy debt.' Bull 295 260, 55 695, 699, 79 1421.12 16 these reasons, hold provisions. affirmed. 17 Affirmed. provides: 'If liable neglects refuses (including interest, additional tax, assessable penalty, thereto) person.' 'Unless another fixed law, imposed section time.' 32 V.S.A. 5765. See note supra. Notice filed 2, pursuant 6323, '(a) Invalidity notice. Except otherwise subsection (c), valid mortgagee, pledgee, purchaser, creditor thereof Secretary his delegate—* *.' No comes four classifications 6323 accords filed. Consequently, put one side Pioneer American 374 83 1651, 770; R. F. Ball Construction 355 587, 78 442, 510, Scovil, 218, 244, 271, concerned security interests envisaged provision created. 363—365, 703—704, 1071. also, Acri, 211, 239, 264 (attachment lien). Hulley, 358 66, 117, 106; Vorreiter, 15, 19, 23; White Bear Brewing 350 1010, 76 646, 100 871; Colotta, 808, 82, 725. Statutes 'Whenever whenever estate deceased debtor, hands executors administrators, insufficient deceased, satisfied; hereby established extend well having debts, voluntary assignment thereof, effects absconding, concealed, absent process act bankruptcy committed.' Illinois ex rel. Gordon Campbell, 329 362, 375—376, 67 340, 347—348, 91 348; 359—360, 307—308. Indeed, repeatedly reserved can overcome sp cific 365, 704; 370, 345; 355—356, 305—306; Texas, 314 480, 484—486, 62 350, 352—353, 86 356; York Maclay, 288 290, 294, 53 323, 324, 77 754; Spokane County 279 80, 95, 49 321, 325, 621. Crest Finance Co. 368 347, 82 384, 342. notes 5, supra, accompanying text. F.2d, 448, n. 2. were characterized summarily enforceable. Brief 92, 1953 Term, p. 27, 13.

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