Case Summary:
Janesville Water & Wastewater, a creditor in the Debtors’ Chapter 13 case, sought priority status for its claim for unpaid utilities under 11 U.S.C. 507(a)(8). The debt was incurred up to April 22, 2005, and was not yet assessed as a tax. The Court determined that Janesville Water & Wastewater was not entitled to priority status because the claim had yet to be assessed as a tax, therefore there is no basis to claim a priority. Taxes for the unpaid utilities would not be assessed until November 16 of the year for which payment is owing, in this case November 16, 2005. 11 U.S.C. 507(a)(8)(B) grants priority to property taxes assessed before the commencement of the case, it does not grant priority to utility bills. Therefore, the claim of Janesville Water & Wastewater was not entitled to priority status.

Statute/Rule References:
11 U.S.C. 507(b) -- Priorities
Wis. Stat. § 66.0609 -- Financial Procedure; Alternative System of Approving Claims
Wis. Stat. § 66.0809 -- Municipal Public Utility Charges

Key Terms:
Priority