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 395.0095

(b) ACTIVITIES REQUIRING PERMIT—PROPERTY HELD OR USED IN

395.0095 Activity Requiring Seller's Permit—Sale of Assets. Taxpayer processed wood furnished by its customer, a related company, into vinyl laminated wood products which the customer sold. While the wood was furnished by its customer, the taxpayer purchased wood filler, adhesives, stains, inks and sealers ex-tax which it incorporated into the wood products.

The sale of its equipment would qualify as an occasional sale under section 6006.5(a) if it was a sale of property not held or used by the taxpayer in the course of activities for which it was required to hold a seller's permit.

Here, the taxpayer would not be required to hold a seller's permit for the processing it does because a "sale" pursuant to section 6006 (b) is only applicable when the processing is for a consumer. However, the taxpayer also is selling the wood filler, adhesives, stains, inks and sealers which it incorporates into the wood. A seller's permit is required for this activity. Accordingly, the sale of the business assets is not exempt as an occasional sale. 1/14/75.