The Sales and Use Tax Law is relevant to the transfer of a retail business which sells tangible personal property. Of particular importance are:

• A “clearance receipt” confirming payment of state and local sales taxes so that the buyer is protected from “successor’s liability”;
• Releases or subordination agreements covering sales tax liens against real or personal property; and
• The tax liability on that portion of the sale price allocated to the personal property to be used in the business.

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