Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595
(a) IN GENERAL
395.0011 Assumption of Liabilities. A corporation exchanges business assets for an assumption of liabilities. Included in the property transferred are "operating agreements" covering leases of realty and of equipment, contracts for construction, materials and supplies, contracts to render or receive services, contracts to sell or buy goods, proposals and bids, collective bargaining agreements, employee benefit plans and related agreements, and various governmental licenses and permits. None of the foregoing constitutes an assumption of liability for purposes of calculating tax liability if the liabilities relate to benefits accrued after the closing of the sale. If liabilities accrued under these agreements are related to benefits received prior to closing, the liabilities are included in the calculation. Additionally, accrued liabilities for vacation plan accruals, pension plan, salaries, and royalties payable are includable for purposes of calculating tax liabilities. 1/8/87.