Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales And Use Tax Court Decisions

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Chemed Corp. v. State Board of Equalization . . . (1987)

The Sale of Service Division Assets Is Not an Occasional Sale if It Is One of a Series of Sales

Plaintiff had three divisions that made sales requiring a seller's permit, and one medical testing services division that conducted activities which did not require a permit. Plaintiff sold all the assets of the service division in a single transaction and contended the sale was an exempt occasional sale since that service division was autonomous from the other retail divisions.

The Board assessed tax on the grounds that the sale of the service division's assets was one of a series of sales by plaintiff.

The court of appeal held in favor of the Board. It held that the Board was not required to consider only sales of equipment used in the service division in determining whether the taxpayer had made a series of sales requiring a permit. The language of the Revenue and Taxation Code defining an occasional sale provided no basis on which to segregate that sale of assets from like sales of other property used in other regions of that division or in other divisions. Chemed Corp. v. State Board of Equalization (1987) 192 Cal.App.3d 967.