Any person required to pay the tax imposed by this chapter and who sells or transfers his or her business of leasing motor vehicles or a major part of the assets of such business, other than a sale of assets (including inventory) in the ordinary and usual course of such business, is required to file a notice of such intended sale or transfer with the division at least forty- five (45) days prior to the date of such sale or transfer, setting forth the name of the seller or transferor, purchaser or transferee, a description of the property or business sold, the amount of the purchase or transfer price and such other information as the Commissioner may reasonably request. Within thirty (30) days after such sale or transfer, such seller or transferor shall file any remittance returns and pay any tax due and not paid up to the date of sale or transfer. At least forty-five (45) days before the sale or transfer referred to above takes place, the purchaser or transferee shall also file a notice of intended sale or transfer with the division, setting forth the same information as required in the seller’s or transferor’s notice and further requesting that the division perform an audit of the seller’s or transferor’s books and records or do whatever else is necessary to determine how much tax is due up to the date of sale or transfer. The purchaser’s or transferee’s notice may be made in conjunction with the seller’s or transferor’s notice. If the purchaser or transferee fails to file the notice as required herein, the purchaser or transferee shall be personally liable to the division for the amount of tax, interest and penalty owed by the seller or transferor to the division up to the amount of the reasonable value of the property acquired by the purchaser or transferee. If a notice is filed, the division shall notify both the seller (or transferor) and the purchaser (or transferee) of the amount to be withheld from the purchase or transfer price to cover all taxes, interest and penalties due under this chapter and unpaid up to the date of sale or transfer. The purchaser or transferee shall withhold this amount from the purchase or transfer price or if payment of money or property is not involved, he or she shall withhold the performance that constitutes consideration for the sale or transfer, until the seller or transferor produces a receipt from the division showing that such tax, interest and penalty had been paid or a certificate from the division showing no tax is due. The purchaser or transferee is relieved of any duty to withhold from the purchase or transfer price and shall have no liability for tax, interest or penalty due hereunder from the seller or transferor, if the division fails to notify the purchaser or transferee of such amount claimed due at least five (5) days before the date of such sale or transfer. If the purchaser or transferee is notified by the division of the amount to be withheld for the purchase or transfer price and does withhold such amount, the purchaser’s or transferee’s liability for any tax, interest or penalty hereunder shall be limited to the amount withheld. If the purchaser or transferee fails to withhold from the purchase or transfer price the amount requested by the division, the purchaser or transferee shall be liable for any tax, interest or penalty due in excess of any amount withheld, but not exceeding the amount of the reasonable value of the property acquired by him or her. The purchaser or transferee shall pay over to the division any amount withheld hereunder upon notification of the refusal of the seller or transferor to pay any tax, interest or penalty due hereunder and upon notification of the division’s claim against the purchaser or transferee for any such month. Nothing in this section shall be construed to relieve the seller or transferor of his or her liability for tax, interest and penalty due from him or her, except that any payments received from the purchaser or transferee as provided herein shall reduce such liability payable to the division.
(Ord. No. 532-91. Passed 3-18-91, eff. 3-22-91)