Bulk sales laws are the regulations applicable to a bulk sale, which may contain special rules and procedures that buyers and sellers must follow when a bulk sale transaction takes place.
Although bulk sales laws have largely been superseded in most States by Article 6 of the Uniform Commercial Code (UCC), some states may still have in place some bulk sale notification requirements. Following those requirements may ensure that the buyer is not held personally liable for any of the seller’s unpaid sales or use taxes. For example, in the State of New York, the seller must give all prospective buyers a copy of the notice contained in Form TP-153. Additionally, the buyer must notify the Tax Department of a pending bulk sale by filing Form AU-196.10.
[Last updated in December of 2021 by the Wex Definitions Team]
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