Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595

Annotation 395.0009

(a) IN GENERAL

395.0009 Assets Used in Retail Business. A taxpayer who was engaged in providing computer consulting services with sales of computer hardware and software was considered a retailer on two grounds:

(1) While the taxpayer made few sales of tangible personal property during the twelve month period immediately preceding its asset sales, it was not because the taxpayer was not in the business of selling items. It was because customers did not wish to buy hardware from taxpayer during that period. (Section 6019.)

(2) In one month the taxpayer made fourteen individual sales of hardware. This amount is considered to be a substantial number of sales. (Section 6015).

Therefore, the taxpayer's sale of assets to the successor is subject to tax. 5/22/92.