Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Use Fuel Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 3. Use Fuel Tax

Chapter 5. Collection of Tax.

Article 4.5. Successor Withholding and Liability1

Section 9022

9022. Successor liability; certificate of tax clearance. (a) If the purchaser of a business or stock of goods fails to withhold the purchase price as required, he or she becomes personally liable for the payment of the amount required to be withheld by him or her to the extent of the purchase price valued in money.

(b) (1) Within 60 days after the latest of the dates specified in paragraph (2), the board shall either issue the certificate or mail notice to the purchaser at his or her address as it appears on the records of the board of the amount that must be paid as a condition of issuing the certificate.

(2) For purposes of paragraph (1), the latest of the following dates shall apply:

(A) The date the board receives a written request from the purchaser for a certificate.

(B) The date of the sale of the business or stock of goods.

(C) The date the former owner's records are made available for audit.

(c) Failure of the board to mail the notice referred to in subdivision (b) shall release the purchaser from any further obligation to withhold from the purchase price under this article. The last date upon which the obligation of the successor may be enforced shall be not later than three years after the date the board is notified of the purchase of the business or stock of goods.

History—Stats. 1991, Ch. 236, in effect July 29, 1991, added "from the" after "withhold" in the first sentence of subdivision (c); substituted "last date upon" for "time within" after "The", substituted "be not later…purchase of the" for "begin to run at the time the person sells out his or her", and deleted "or at the time that the determination against the person becomes final, whichever event occurs the later" after "of goods" in the second sentence of subdivision (c).

1 Article 4.5 was added by Stats. 1986, Ch. 1361, effective January 1, 1987.