When is selling a Business or Business Assets subject to sales tax?
The sale of business assets consisting of tangible personal property is subject to sales tax if you hold or are required to hold a seller’s permit at the time of sale, except that the sale is exempt if all the following conditions are met: The sale is of personal property (other than inventory held for sale) previously used by the seller to conduct its trade or business at a location. The sale occurs after the seller ceased operating the business at that location. A sale meeting the above two conditions is exempt from sales and use taxes even though the seller holds a seller’s permit for one or more locations. The sale of business or business assets which are subject to tax include: Selling surplus assets of a continuing business. Sales of motor vehicles, boats, snowmobiles, mobile homes not exceeding 45 feet in length, trailers, semi-trailers, all-terrain vehicles, or aircraft.
