Florida Dep't of Revenue v. Piccadilly Cafeterias, Inc.

1 Analyses of this case by attorneys

  1. Buying and Selling Golf Courses in Florida

    Shutts & Bowen LLPMichael SjuggerudOctober 21, 2021

    With proper planning, bankruptcy law may facilitate the following:Elimination of Documentary Stamp Tax. If the sale of a golf course is properly structured in bankruptcy as a post-confirmation transfer, the sale of a golf course may occur free from payment of documentary stamp tax which would otherwise be payable under nonbankruptcy law. Florida Department of Revenue v. Piccadilly Cafeterias, Inc., 554 U.S. 33 (2008) (holding that the Bankruptcy Code’s stamp-tax exemption applies to transfers made pursuant to a confirmed plan).Rejection of Executory Contracts.Section 365 of the Bankruptcy Code allows the debtor to reject (terminate) executory contracts. For example, if golf course membership agreements are considered executory contracts, then the debtor may be able to reject such membership agreements.