Sec. 12-424. Payment on termination of business and successor's liability.
Sec. 12-424. Payment on termination of business and successor's liability.
(1) Withholding by purchaser. If any person liable for any amount under this chapter
sells out his or her business or stock of goods or quits the business, such person's successors or assigns shall withhold sufficient of the purchase price to cover such amount until
the former owner produces a receipt from the commissioner showing that it has been
paid or a certificate stating that no amount is due.
(2) Liability of purchaser; release. If the purchaser of a business or stock of goods
fails to withhold the purchase price as required, such purchaser becomes personally
liable for the payment of the amount required to be withheld by the purchaser to the
extent of the purchase price, valued in money. Within sixty days after receiving a written
request from the purchaser for a certificate, the commissioner shall either issue the
certificate or mail notice to the purchaser at said purchaser's address as it appears on
the records of the commissioner of the amount that must be paid as a condition of issuing
the certificate. Failure of the commissioner to mail the notice shall release the purchaser
from any further obligation to withhold the purchase price as above provided. The time
within which the obligation of the successor may be enforced shall start to run at the
time the person sells out his or her business or stock of goods or quits the business or
at the time that the assessment against such person becomes final, whichever event
occurs later.
(1949 Rev., S. 2108; P.A. 85-316, S. 5, 7; P.A. 00-174, S. 16, 83.)
History: P.A. 85-316 made technical change in Subsec. (2); P.A. 00-174 replaced references to "retailer" with "person"
with regard to liability under this section, provided that the obligation under this section may commence with the person's
quitting the business and made technical changes for purposes of gender neutrality, effective October 1, 2000, and applicable
to sales of a business or stock of goods occurring on or after that date.
Cited. 44 CS 361.