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BTLG Table of Contents > Sales and Use Tax Annotations > S > 535.0000 Successor's Liability > Annotation 535.0060.325

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535.0000 Successor's Liability—Regulation 1702

Annotation 535.0060.325

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535.0060.325 Purchase of Inventory Subject to Senior Security Interest. The Board imposed successor's liability on a company because it purchased the inventory of Corporation A without providing for payment of the outstanding sales tax liability. The fact that the inventory may have been subject to a senior security interest is irrelevant. The Board is not imposing a superior lien on the inventory sold which would require the purchaser (company) to pay the Board rather than the holder of the senior lien when inventory is sold. Rather, the liability is imposed on the purchaser for taxes due by the seller, Corporation A, pursuant to section 6811. The fact that there was no cash left from the purchase price to withhold does not relieve the purchaser from liability under section 6811. 4/22/96.