Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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S

535.0000 SUCCESSOR'S LIABILITY—Regulation 1702

Annotation 535.0061.825

535.0061.825 Repossession of Collateral. A married couple sold all of its stock in a corporation which owned and operated a hardware store. The purchasers executed promissory notes, security agreements, and a pledge agreement for the purchase of the stock. The couple later assigned these documents to a revocable trust created by them.

The purchasers defaulted and the parties entered into an "Agreement for Repossession of Collateral in Satisfaction of Debt" which provided for the return of all collateral, including the shares in the Corporation, to the trust. Upon receipt by the trust, the purchaser's notes were deemed satisfied. The trust, in turn, assigned the property to the couple who applied for a seller's permit to operate the business in their names. The couple is subject to successor's liability. 3/18/97.