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BTLG Table of Contents > Sales and Use Tax Annotations > S > 535.0000 Successor's Liability > Annotation 535.0078

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535.0000 Successor's Liability—Regulation 1702

Annotation 535.0078

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535.0078 Successor's Liability as an Independent Liability. The provisions of the Sales and Use Tax Law do not provide that the liability of the successor is akin to a surety or that the Board must first exhaust its remedies against the seller. Rather, it is an independent liability that arises by reason of the purchase of the seller's business or stock of goods without a clearance from the Board or without withholding a sufficient portion of the purchase price to cover unpaid taxes. The underlying basis is that the purchaser should be held liable because of the acquisition of the seller's assets that were previously available to satisfy the seller's liability to the Board. 3/21/91.