(A) Tax procedure when business sold or closed.
(1) The sales tax imposed pursuant to § 4-3-3 of this chapter, shall be a first and prior lien upon the tangible personal property and business fixtures of or used by any retailer under lease, title retaining contract or other contract arrangement, excepting stock of goods sold or for sale in the ordinary course of business, and shall take precedence on all such property over other liens or claims of whatsoever kind or nature.
(2) Any retailer who sells out his or her business or stock of goods, or quits business, shall be required to make out the return as provided in this chapter within ten days after the date such person sold his or her business or stock of goods, or quit business, and his or her successor in business shall be required to withhold sufficient purchase money to cover the amount of said taxes due and unpaid until such time as the former owner produces a receipt from the Finance Director showing that the taxes have been paid or a certificate that no taxes are due.
(3) If the purchaser of a business or stock of goods fails to withhold the purchase money as provided in subsection (A)(2) of this section and the taxes are due and unpaid after the ten-day period allowed, such person, as well as the vendor, shall be personally liable for the payment of the taxes unpaid by the former owner. Likewise, anyone who takes any stock of goods or business fixtures of or used by any retailer under lease, title retaining contract or other contract arrangement, by purchase, foreclosure sale, or otherwise, takes the same subject to the lien for any delinquent sales taxes owned by such retailer and shall be liable for payment of all delinquent sales taxes of such prior owner, not, however, exceeding the value of property so taken or acquired.
(B) Tax procedure for bankruptcy, receivership, assignment. Whenever the business or property owner of any taxpayer subject to this chapter shall be placed in receivership, bankruptcy or assignment for the benefit of creditors, or seized under distraint for property taxes, all taxes, penalties and interest imposed by this chapter and for which said retailer is in any way liable under the terms of this chapter shall be a prior and preferred claim against all the property of said taxpayer, except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor or purchaser whose rights shall have attached prior to the filing of the notice as provided in § 4-3-5-1(C)(2) of this chapter on the property of the taxpayer, other than the goods, stock in trade, and business fixtures of such taxpayer. No sheriff, receiver, assignee or other officer shall sell the property of any person subject to this chapter under process or order of any court without first ascertaining from the Finance Director the amount of any taxes due and payable under this chapter, and if there are any such taxes due, owing, or unpaid, it is the duty of such officer to first pay the amount of said taxes out of the proceeds of said sale before making payment of any monies to any judgment creditor or other claims of whatsoever kind or nature, except the costs of the proceedings and other preexisting claims or liens as provided in this section. For the purposes of this subsection, “taxpayer” includes “retailer”.
(Ord. 45(1991) § 1; 1997 Code)