Sales and use taxes: successor liability.

The Sales and Use Tax Law requires, if any person liable for any amount under that law sells out his business or stock of goods or quits the business, his or her successors or assigns to withhold a sufficient amount of the purchase price to cover an amount equal to that liability until the former owner produces a receipt from the State Board of Equalization showing that it has been paid or a certificate stating that an amount is not due. That law provides that if the purchaser of a business or stock of goods fails to withhold from the purchase price as required, he or she becomes personally liable for the payment of the amount required to be withheld by him or her to the extent of the purchase price, valued in money. This bill would instead provide that the purchaser becomes personally liable for the payment of the amount required to be withheld by him or her to the extent of the purchaser price if the purchaser of a business or stock of goods intentionally fails to withhold from the purchase price.