Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595
(b) ACTIVITIES REQUIRING PERMIT—PROPERTY HELD OR USED IN
395.0388 Service Center Equipment. A taxpayer operates a computer sales business at one location for which a seller's permit is held. It also operates a service center in a separate city for which a seller's permit is not held since this location provides warranty maintenance service for disk drives, a nontaxable activity. The service center is being discontinued and the equipment is being sold.
The service center was not entirely a separate endeavor from activities for which the taxpayer holds its seller's permit since the activities conducted at the service center were the warranty maintenance service for disk drives sold by the taxpayer. Also, the taxpayer accounts for activities at the sales location and service center on a consolidated basis. Accordingly, the taxpayer held the assets on a unified business for which taxpayer was required to hold a seller's permit. Thus, tax applies to the sale of the service center assets. 3/2/87.