Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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535.0000 SUCCESSOR'S LIABILITY—Regulation 1702

Annotation 535.0080

535.0080 Withholding by Purchaser. A taxpayer was liable for unpaid sales and use taxes due from his predecessor because he purchased a used car business and failed to withhold from the purchase price the sales taxes due the state. The predecessor's used car business, which was one of the several businesses of the corporation, failed to report some of the used car sales it made. The taxpayer subsequently purchased the accounts receivable of the used car business and all the stock in trade. The car dealer also took over and operated the car lot of the business. No amount was withheld from the purchase price to pay for the tax liability of the seller, even though there were no certificates of release from the State Board of Equalization. 12/22/71.