Tenn. Comp. R. & Regs. 1320-04-02-.08 - TRANSFER OF OWNERSHIP OF BUSINESS

(1)

(a) Any person who purchases or otherwise obtains ownership of a business engaged in sales of alcoholic beverages for consumption on the premises shall not make sales of alcoholic beverages prior to receiving a license from the Alcoholic Beverage Commission and registering for sales and alcoholic beverage taxes with the Department.

(b) Any person who purchases or otherwise obtains ownership of a business engaged in sales of alcoholic beverages for consumption on the premises and who makes sales of alcoholic beverages will be held liable for tax on those sales, notwithstanding that such person has failed to properly obtain an alcoholic beverage license and/or tax registration or has operated illegally under another person's license and/or tax registration.

(2)

(a) Any person who sells, transfers or otherwise terminates his ownership of a business engaged in sales of alcoholic beverages for consumption on the premises shall provide notice of such sale, transfer or termination to the Department within fifteen days of the date of such sale, transfer or termination. For the purpose of this rule, "notice" means direct written notice to the Department of Revenue as part of the final alcoholic beverage tax return and final sales tax return of the business and surrender of the alcoholic beverage license to the Alcoholic Beverage Commission.

(b) Any person who upon sale or transfer of his business allows or permits the new owner or operator to remit tax, make wholesale purchases or conduct business in any manner using the seller's or transferor's alcoholic beverage license or tax registration shall be jointly and severally liable with the owner or operator for any unpaid taxes accrued by virtue of sales of alcoholic beverages for consumption on the premises during the period of such operation.

(c) Any person who fails to provide notice to the Department as required by this rule with the result that the business continues to operate under the seller's or transferor's alcoholic beverage license and/or tax registration shall be presumed to have allowed or permitted such operation.

Notes

Tenn. Comp. R. & Regs. 1320-04-02-.08

Original rule filed January 31, 1992; effective March 16, 1992.

Authority: T.C.A. §§ 57-4-201, 57-4-301, 57-4-303, and 67-1-102.