Sec. 12-294. Transfer of license. Successor tax liability.
Sec. 12-294. Transfer of license. Successor tax liability. (a) If a distributor or
dealer removes his or her business from one location to another during the period in
which the license is in force, the commissioner shall transfer the license to the new
location without an additional fee.
(b) (1) If any distributor liable for any amount due under this chapter sells out his
or her business or stock of goods or quits the business, such distributor's successors or
assigns shall withhold a sufficient amount of the purchase price to pay the amount due
under this chapter from the distributor until the distributor provides to such successor
or assignee a receipt from the commissioner showing that such amount has been paid
or a certificate stating that no amount is due.
(2) If any such successor or assignee fails to withhold the purchase price as required,
such successor or assignee shall be personally liable for the payment of the amount
required to be withheld by such successor or assignee to the extent of the purchase price,
valued in money.
(c) (1) No later than the sixtieth day after the latest of the dates specified in subdivision (2) of this subsection, the commissioner shall either issue the certificate stating that
no amount is due or mail notice of the amount that must be paid as a condition of
issuing the certificate. Such notice shall be mailed to such successor or assignee at such
successor's or assignee's address as it appears on the records of the commissioner.
(2) For purposes of subdivision (1) of this subsection, the latest of the following
dates shall apply: (A) The date the commissioner receives a written request from the
successor or assignee for a certificate; (B) the date of the sale of the business or stock
of goods; or (C) the date the former owner's records are made available for audit.
(d) Failure of the commissioner to mail the notice referred to in subsection (c) of this
section shall release the successor or assignee from any further obligation to withhold the
purchase price as provided in subsection (b) of this section. The period within which
the obligation of the successor or assignee may be enforced shall commence on the date
the person sells out his or her business or stock of goods or quits the business or on the
date that the assessment against such person becomes final, whichever event occurs
later, and shall end three years after such date.
(e) The certificate provided for in subsection (c) of this section may be issued after
the payment of all amounts due under this chapter, according to the records of the department as of the date of the certificate, or after the payment of the amounts is secured to
the satisfaction of the commissioner.
(f) The obligation of the successor or assignee shall be enforced by serving a notice
of successor liability on the successor or assignee. The notice shall be served in the
manner prescribed under section 12-309 for service of a notice of assessment, not later
than three years after the date the commissioner is notified by the successor or assignee
of the purchase of the business or stock of goods. The successor or assignee may protest
the assessment in the manner provided in section 12-311. Sixty days after the date on
which a notice of assessment is mailed, an assessment shall become final except for
any amount as to which the successor or assignee has filed a written protest with the
commissioner, as provided in section 12-311.
(1949 Rev., S. 1977; P.A. 03-225, S. 5.)
History: P.A. 03-225 designated existing provisions as Subsec. (a), making a technical change therein, and added
Subsecs. (b) to (f), inclusive, re successor tax liability, effective July 1, 2003.