TITLE 4: ECONOMIC RESOURCES
DIVISION 1: REVENUE AND TAXATION
§ 1881. Application of Proceeds of Levy. (a) Collection of Liability. Any money realized by proceedings under this chapter (whether by seizure, by surrender under section 1873 of this Division, or by sale of seized property) or by sale of property redeemed by the Commonwealth (if the interest of the Commonwealth in such property was a lien arising under the provisions of this Division) shall be applied as follows: (1) Expense of Levy and Sale. First, against the expenses of the proceedings; (2) Specific Tax Liability on Seized Property. If the property seized and sold is subject to a tax imposed by any Commonwealth law which has not been paid, the amount remaining after applying paragraph (1) shall then be applied against such tax liability (and, if such tax was not previously assessed, it shall then be assessed); (3) Liability of Delinquent Taxpayer. The amount, if any, remaining after applying paragraphs (1) and (2) shall then be applied against the liability in respect of which the levy was made or the sale was conducted. (b) Surplus Proceeds. Any surplus proceeds remaining after the application of subsection (a) shall, upon application and satisfactory proof in support thereof, be credited or refunded by the Secretary to the person or persons legally entitled thereto. Source: PL 14-35, § 4 (1880), modified. Commission Comment: In the subsection (a) above, the Commission changed the section number originally referenced in PL 14-35 to the proper renumbered section number pursuant to its authority by 1 CMC § 3806(c).