67-5-513 - Sale or termination of business. - Tennessee Statutes

67-5-513. Sale or termination of business.

(a)  If any individual operating for the purpose of making a profit as a business or profession, partnership, joint venture, corporation, manufacturer or other legal entity having personal property, tangible or intangible, assessable by the county assessor or other authority, shall sell the business or terminate it, the individual shall notify the assessor and trustee and make payment within fifteen (15) days after the date of selling or terminating the business, of any taxes, interest and penalties due and owing and the taxes of the current year in accordance with the assessment records, which shall be based on the last assessment and rate fixed, according to law, and the trustee shall accept payment of the amount determined to be owing.

(b)  (1)  The successor, successors or assigns shall be required to withhold a sufficient amount of the purchase money to cover the amount on the assessment records for the current year determined as set forth in subsection (a), and any amount of such taxes, interest and penalties due and unpaid, until such former owner shall produce a certificate from the assessor stating that such former owner does or does not appear on the assessor's assessment records for the current year and a receipt from the trustee and municipal collector showing that all taxes, interest and penalties have been paid, or a certificate stating that no taxes, interest or penalties are due.

     (2)  If the purchaser of a business fails to withhold the purchase money as provided in subdivision (b)(1), the purchaser shall not be an innocent purchaser and shall be personally liable, together with the prior owner, for the payment of all personalty taxes, interest and penalties accruing and unpaid on account of the operation of the business by any former owner, owners or assigns, and for any assessment for the current year based on the last made assessment and the tax rate fixed according to law, and the trustee shall accept tender of the amount determined to be owing.

[Acts 1981, ch. 463, § 1; T.C.A., § 67-1723.]