This case came before the court upon Montgomery County, Maryland's (the "Movant") Motion for Allowance and Payment of Personal Property Taxes as an Administrative Expense (the "Motion"). Finding that the taxing authority held an unliquidated tax claim on the petition date, the Court concluded that the tax was not incurred post-petition and therefore cannot be allowed as an administrative expense.
Alternatively, the Motion states that to the extent that the claim is not allowable as an administrative expense, it should be entitled to priority as a tax claim under 11 U.S.C. § 507(a)(8). However, the Movant also asserts that pursuant to Section 14-804 of the Tax-Property Article of the Annotated Code of Maryland, the tax claim is secured by a statutory lien upon the personal property assessed for the tax. As 11 U.S.C. § 507(a)(8) only provides priority treatment to ”unsecured claims” of governmental units, if the tax claim is in fact a secured claim, then it is not entitled to an unsecured priority. Therefore, the alternative treatment under Section 507(a)(8) was denied.