Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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O

395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595

Annotation 395.2163

(j) MERGERS AND REORGANIZATIONS

(2) Reorganizations

395.2163 Corporate Reorganization. A group of shareholders of Corporation A will sell all of their shares in the corporation for cash and notes receivable. Corporation A will then create a new subsidiary, B, and transfer a portion of its real property assets in exchange for stock. The stock of B will then be transferred to another group of Corporation A stockholders in exchange for shares in Corporation A held by this group. Since none of the transactions involve the transfer of tangible personal property, no sales or use tax liability arises. 1/31/95