Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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S

495.0000 SALE

Annotation 495.0440

(a) IN GENERAL—DEFINITION

495.0440 Rescission. A contract rescinding the purchase of business assets and calling for the return of the property to the original seller is not a sale. This is true even though the sale which is rescinded is a taxable retail sale for which the seller cannot claim a returned merchandise deduction because the full purchase price was not refunded. Rescission attempts to return the parties to the status quo and it may be necessary in a given case to allow the seller to retain a portion of the purchase price because of damages done to the business by the buyer. 9/8/65.