Successor Liability
If you purchased a business
the purchaser can be held liable for payment on past due taxes pursuant
to
Tax Code Section: 5-10-595 Collection of taxes when there is succession
in and/or cessation of business. The purchaser should require proof
that the taxes have been paid by having the former owner produce a
Certificate of Compliance from the Tax Audit & Collections Department.
If past taxes are due at the time of the sale, the purchaser shall
withhold from the purchase money an amount sufficient to cover the taxes
required to be paid, and interest or penalties due and payable, until
the former owner produces a receipt from the Tax Collector showing all
City tax has been paid or a certificate of compliance stating that no
amount is due as then shown by the records of the Tax Collector.
Tax Audit & Collections
P.O. Box 1466
Mesa, AZ 85211-1466
Fax 480-644-2687
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