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House approves bill requiring sales-tax notice to new business buyers
Summary
House Bill 115 passed Jan. 26, 1995; it requires the State Tax Commission to provide notice on new sales-tax-account applications that purchasers of an existing business may assume prior sales-tax liabilities. Sponsor Armand Evans said the measure does not change liability, only increases notification.
House Bill 115 passed the Utah House on Jan. 26, 1995. The measure requires the State Tax Commission to notify applicants for a new sales-tax account that they may be liable for unpaid sales taxes of a previous business owner when they buy an existing business.
Representative Armand Evans, sponsor, said the bill does not change the legal liability that buyers assume when purchasing a business; rather, it asks the tax commission to place a notice on the application for a new sales tax number to alert buyers to check records. Evans said the commission supported the approach and no fiscal note was required.
Members pressed the sponsor on edge cases such as abandoned storage units, whether the commission would disclose amounts due, and whether the notice would help when the commission’s records are out of date. The sponsor and supporters said the measure is a modest, unobtrusive step to send a ‘red flag’ to prospective owners so they ask the appropriate questions before finalizing a purchase.
Floor debate concluded, summation was waived, and the House recorded a vote of 68 yes, 0 no; HB 115 will be transmitted to the Senate.
