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
(f) SALE OF A BUSINESS GENERALLY
395.1120 Escrow Transactions—Time of Sale. When intended purchasers of a business deposit a part of the purchase price in escrow, agree to pay the balance, take possession of the premises and begin active conduct of the business, a sale results under section 6006 because possession of the property is transferred, but the seller retains title as security for payment of the price. In such case, even if there is not a transfer of title because conditions precedent to closing of the escrow are not satisfied, there is nevertheless a sale by transfer of possession, pursuant to section 6006. 7/30/58.