Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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C

170.0000 COLLECTION OF TAX BY BOARD

Annotation 170.0008.900

(a) IN GENERAL

170.0008.900 Levies Directed Toward Sales Tax Reimbursement. A taxpayer sold and assigned its accounts receivable to a third party. Uniform Commercial Code filings were filed with the Secretary of State on April 8, 1993.

A tax liability was established against the taxpayer in 1991, but no liability was recorded in the Secretary of State's office until June 1995. The Board's staff wishes to levy against the taxpayer's customer for the portion of the receivables representing sales tax reimbursement.

Payment of sales tax reimbursement by a customer is governed solely by the terms of the sales contract. The rights of the purchaser of the receivables are the same for the sales tax reimbursement as it is for any other payment due under the contract of sale. Since the purchaser of accounts receivable has perfected its right prior to the state tax lien, no portion of the receivables is subject to a Board levy. 11/20/95.