A. Acquisition Of Business: The City tax shall be remitted on the price paid for tangible personal property which is acquired with the purchase of a business. The tax shall be based on the price paid for tangible personal property as recorded in the bill of sale or agreement and constituting a part of the total transaction at the time of the sale or transfer, provided the valuation is as great or greater than the fair market value of the tangible personal property. Where the transfer of ownership is a package deal made by a lump sum transaction, the tax shall be paid on the book value of tangible personal property set up by the consumer for income tax depreciation purposes, or on the fair-market value if no determination for income tax purposes has been made. When a business is taken over, by foreclosure or otherwise, in return for the assumption of outstanding indebtedness owed by former owners, the tax shall be paid on the fair-market value of all taxable tangible personal property acquired by the new owner.
B. Purchaser Liable For Prior Owner's Unpaid Tax: The seller of a business, having outstanding City sales or use tax liability, must compute and pay the tax due at the time of the sale of the business. If the seller fails to pay the tax as required, the purchaser shall be liable for any unpaid tax of a predecessor.
C. Agent Of Seller And Seller Liable For Tax: The purchaser shall report the tax on the City use tax return. The seller or the seller's agent shall be held liable for sales and use tax remittance on the sale of a business in the event the purchaser fails to remit the use tax due on the purchase.
D. Return And Withholding Taxes: Any person who shall sell out a business or stock of goods or shall quit doing business shall be required to make out a return as provided in this City Tax Code within ten (10) days after the date that person completes the sale of the business or stock of goods, or quits business, and any successor in business, if any, shall be required to withhold a sufficient amount of the purchase money to cover the amount of the sales and use taxes due and unpaid until the time as the former owner shall produce a receipt from the Director showing that the taxes have been paid, or a certificate that no taxes are due. (1968 Code §3-81; Ord. 76-168; Ord. 91-161; Ord. 01-42)