2.8.i The Majority Rule

• Jurisdiction: United States

i. Excise taxes

Typically includes sales and use taxes. Dischargeable if the triggering event ("transaction") is over three years old. § 507(a)(8)(C).

These taxes may be discharged "when stale," that is if imposed on a transaction occurring more than three years prior to the bankruptcy filing. See: In re Tapp, 16 B.R. 315 (Alaska, 1981); 11 U.S.C. § 507 (a)(8)(E). And see discussion of sales tax dischargeability at ¶ 2.7(g); In re Torres, 143 B.R. 183 (Bankr. N.D. Ill. 1992); Shaw v. Georgia (Bankr. N.D. Ga. 2014).

An excise tax is defined by New Neighborhoods v. West Virginia Worker's Comp. Fund, 886 F.2d 714 (4th Cir. 1989) as "an indirect tax, one not directly imposed upon persons or property ... and is one that is imposed on the performance of an act, the engaging in any occupation, or the en-joyment or a privilege."

The court...