In re Bowers, 506 B.R. 249

Debtors owed delinquent real estate taxes; Plymouth Park purchased two Summit County tax lien certificates (Nov. 3, 2010): one with a negotiated 0.25% rate and one with an 18% rate.
Debtors filed Chapter 13; their plan proposed paying 0.25% on the first certificate and 18% on the second. Plymouth Park filed a proof of claim demanding 18% on both and objected to plan confirmation.
Plymouth Park argued its claim was a "tax claim" under 11 U.S.C. § 511(a) and that O.R.C. § 5721.38(B) requires an 18% redemption interest rate applicable to the Chapter 13 treatment.
Debtors argued state law governs under § 511 but that the applicable statutory scheme (O.R.C. § 5721.37) tolls the foreclosure period during bankruptcy and requires interest to accrue at the certificate rate (0.25%) while the bankruptcy case is open; they also argued § 5721.38(B) applies only to lump-sum redemptions, not plan payments.
Bankruptcy Court held (and the Panel accepts) that the claim is a tax claim under § 511, that Ohio law controls, and that O.R.C. § 5721.37(A)(3)(c) governs during the bankruptcy tolling period so the certificate rate (0.25%) applies to Plymouth Park’s first certificate while the bankruptcy is open.

Issue	Plymouth Park's Argument	Debtors' Argument	Held
Whether Ohio law sets interest on the tax certificate in the Chapter 13 plan at 18% or the negotiated certificate rate	§ 5721.38(B) mandates 18% redemption interest applicable to the claim	§ 511 incorporates state law but § 5721.37 tolling + § 5721.37(A)(3)(c) mean interest accrues at the certificate rate (0.25%) during bankruptcy; § 5721.38(B) is for lump-sum redemptions only	Court held § 5721.37 governs during tolling; certificate rate (0.25%) applies while bankruptcy case is open; § 5721.38(B) not controlling in this context

Midland Asphalt Corp. v. United States, 489 U.S. 794 (1989) (finality standard for appeals)
Till v. SCS Credit Corp., 541 U.S. 465 (2004) (prime-plus approach for cramdown interest rates in Chapter 13)
RadLAX Gateway Hotel, LLC v. Amalgamated Bank, 132 S.Ct. 2065 (2012) (specific statutory provisions prevail over general ones)
Morton v. Mancari, 417 U.S. 535 (1974) (statutes should be given effect together when possible)
Perrysburg Twp. v. Rossford, 103 Ohio St.3d 79 (2004) (Ohio statutory interpretation: give effect to words used)
Dickson v. Countrywide Home Loans (In re Dickson), 655 F.3d 585 (6th Cir. 2011) (de novo review of bankruptcy court’s legal conclusions)
In re Cortner, 400 B.R. 608 (Bankr. S.D. Ohio 2009) (tax-certificate interest accrues during bankruptcy unless Title 11 provides otherwise)