Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595
(k) DISSOLUTION; LIQUIDATION; DISTRIBUTION OF ASSETS
395.2300 Liquidation as a Use. A corporation is required to pay the use tax under section 6094 when it transfers by way of a liquidating dividend to its sole shareholder property purchased tax free for resale and the shareholder does not hold the property for resale in the regular course of business. The corporation has not resold the property in the regular course of its business, and therefore has made use of it as use is defined in section 6009. 7/20/59; 12/13/82; 2/24/83.