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BTLG Table of Contents > Sales and Use Tax Annotations > O > 395.0000 Occasional Sales > Annotation 395.1100

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O

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395.0000 Occasional Sales—Sale of a Business—Business Reorganization—Regulation 1595

Annotation 395.1100

(f) Sale of a Business Generally

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395.1100 Discontinuance of Business—Sales after. A sale is made of furniture and fixtures held or used in an activity requiring the holding of a seller's permit, upon the exercise of an option in a lease agreement, the exercise of the option occurring within a year after the date of sale of the business.

Assuming that the lease represents a true option agreement, and is not in lieu of a sale, a sale does not occur until the exercise of the option. If the agreement to sell was entered into by a retailer required to hold a seller's permit, however, the tax applies to the sale. 5/25/51.