Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013

Sales and Use Tax Annotations

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535.0000 SUCCESSOR'S LIABILITY—Regulation 1702

Annotation 535.0002

535.0002 Assets Associated with a Business. Under the terms of a contract, B assigned its existing leases of premises, furniture and fixtures, trade name, customer lists, and goodwill together with the right to negotiate new leases to A. A did not acquire any inventory or accounts receivable from B. A stated that in actuality it did not utilize all of the assets assigned to it by B. Nevertheless, A is the successor to B. The accounts receivable and inventory are not essential elements of a business. A acquired all of the essential elements of the business from B and is liable as a successor to B under Revenue and Taxation Code sections 6811 and 6812. 6/5/75.