Any money realized by proceedings under this chapter shall be applied as follows:
(1) First, against the expenses of the proceedings.
(2) The amount, if any, remaining after payment of the expenses shall be applied against the liability in respect of which the levy was made or the sale was conducted.
(3) Any surplus proceeds remaining after this shall, upon application and satisfactory proof in support, be credited or refunded by the tax administrator to the person or persons legally entitled.