Louis Brandeis

“ No good reason is suggested why liens for state taxes should be deemed to have been excluded from the scope of this general power to sell free from incumbrances. Section 64 of the Bankruptcy Act (11 USCA § 104) grants to the court express authority to determine 'the amount or legality' of any tax. To transfer the lien from the property to the proceeds of its sale is the exercise of a lesser power; and legislation conferring it is obviously constitutional. Realization upon the lien created by the state law must yield to the requirements of bankruptcy administration. ”

“ The treasurer contends that the judgment of the bankruptcy court authorizing and confirming the sale free from the tax lien is a nullity, because the court was without power to sell property of the bankrupt free from the existing lien for taxes; and also because it did not acquire jurisdiction over the State in that proceeding.
First. The present Bankruptcy Act (July 1, 1898, 30 Stat. 544, c. 541 (11 USCA § 1 et seq.) ) , unlike the Act of 1867, [1] contains no provision which in terms confers upon bankruptcy courts the power to sell property of the bankrupt free from incumbrances. ”

“ Section 5671 of the Ohio General Code provides: 'The lien of the state for taxes levied for all purposes, in each year, shall attach to all real property subject to such taxes on the day preceding the second Monday of April, annually, and continue until such taxes, with any penalties accruing thereon, are paid.' The bankruptcy court, having held two mortgages executed by the bankrupt to be prior in lien to the taxes, applied all of the proceeds of the sale toward the satisfaction of one of them ”