§ 3118. Bulk sales; transferee liability

(a) Whenever a licensee (transferor) required to collect and remit the tax required by this subchapter shall make any sale, transfer, lease, or assignment (transfer) in bulk of any part or the whole of the assets of a business, otherwise than in the ordinary course of the business, the purchaser, transferee, lessee, or assignee (transferee) shall, at least 10 days before taking possession of the subject of the transfer or before payment therefor if earlier, notify the Commissioner in writing of the proposed transfer and of the price, and date thereof; and whether or not the transferor has represented to, or has informed the transferee that the transferor owes any tax, interest, or penalties required by this subchapter and whether or not the transferee has knowledge that such taxes, interest, or penalties are owed, and whether any taxes, interest, or penalties are in fact owed.

(b) Whenever the transferee shall fail to give notice to the Commissioner as required by subsection (a) of this section, or whenever the Commissioner shall inform the transferee that a possible claim for tax, interest, or penalty exists, any sums of money, property, or choses in action, or other consideration, which the transferee is required to transfer over to or for the transferor shall be subject to a first priority right and lien for any taxes, interest, or penalty theretofore or thereafter determined to be due from the transferor to the State, and the transferee is forbidden to transfer the consideration to or for the transferor to the extent of the amount of the state's claim.

(c) For failure to comply with this section, the transferee shall be personally liable to the State for the amount of the State's claim theretofore or thereafter determined to be due to the State from the transferor and the liability may be assessed and enforced against the transferee in the same manner as provided for by this chapter against the transferor. (Added 1999, No. 154 (Adj. Sess.), § 43.)