Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595
(j) MERGERS AND REORGANIZATIONS
395.2058 De Facto Merger. In a statutory merger, the transfer of property is by operation of law and is not regarded as a sale. Thus, no sales tax applies. (Regulation 1595(b)(3).) In a de facto merger, however, the property is not transferred by operation of law, but rather by contract in exchange for consideration. Such a transfer in a de facto merger is a sale and is subject to tax, unless prequalifying for exemption under sections 6281 or 6367. 6/24/65.