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
(i) TRANSFERS AND CONTRIBUTIONS TO NEW CORPORATION OR PARTNERSHIP
395.1881 Commencing Corporation—Assumption of Liabilities Measurable Consideration. Liabilities such as pension funds, tax withholdings, real estate mortgage, and capitalized leases which are not directly related to tangible personal property transferred are considered part of the assumed liabilities in calculating the measure of tax on the sale within Regulation 1595(b)(4). However, if the liabilities are those that will be incurred after the sale for benefits that will be received after the sale (contingent liabilities), those amounts are not assumed liabilities and would not be used in calculating the measure of tax. 11/15/90.