Lantana Corp, a home builder, specializing in Tucson in-fill developments, has had to fill Chapter 11 bankruptcy protection due to a state sales tax dispute.

As reported today in the Arizona Daily Star, Lantana Corp attorney, Michael McGrath said, "We are in a dispute with the Arizona Department of Revenue over sales tax liability we believe is fully paid... The department believes different."

Chapter 11 bankruptcy filings are often used to protect a company while disputing a creditor's claim, such as the Arizona Department of Revenue. A Chapter 11 bankruptcy allows the company to continue operations, while the dispute is settled.

Lantana did not want the dispute to affect its ability to sell 19 homes - three in escrow and 16 others currently under construction in five Tucson subdivisions.

For more information on this story, go to AZStarNet.