Ohio Code 5735.34 – Sale or discontinuing business
(A) If any motor fuel dealer sells that motor fuel dealer’s entire business or discontinues operating that business, the taxes and any interest and penalties imposed under this chapter that arose prior to the date of sale or discontinuation become due and payable immediately. Within fifteen days after the date of the sale or discontinuation of the business, the motor fuel dealer shall make a final return and provide written notification to the tax commissioner of the sale or discontinuation and the name and contact information of the purchaser, if applicable. The purchaser of the business shall withhold a sufficient amount of the purchase money to cover the amount of such taxes, interest, and penalties due and unpaid until the seller produces a receipt from the tax commissioner showing that the taxes, interest, and penalties have been paid, or until the seller produces a certificate indicating that no taxes, interest, and penalties are due.
Terms Used In Ohio Code 5735.34
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Motor fuel: means gasoline, diesel fuel, kerosene, compressed natural gas, or any other liquid motor fuel, including, but not limited to, liquid petroleum gas or liquid natural gas, but excluding substances prepackaged and sold in containers of five gallons or less. See Ohio Code 5735.01
- Motor fuel dealer: means any person who satisfies any of the following:
(a) The person imports from another state or foreign country or acquires motor fuel by any means into a terminal in this state;
(b) The person imports motor fuel from another state or foreign country in bulk lot vehicles for subsequent sale and distribution in this state from bulk lot vehicles;
(c) The person refines motor fuel in this state;
(d) The person acquires motor fuel from a motor fuel dealer for subsequent sale and distribution by that person in this state from bulk lot vehicles;
(e) The person possesses an unrevoked permissive motor fuel dealer's license. See Ohio Code 5735.01
- Person: includes individuals, partnerships, firms, associations, corporations, receivers, trustees in bankruptcy, estates, joint-stock companies, joint ventures, the state and its political subdivisions, and any combination of persons of any form. See Ohio Code 5735.01
- receipt: means distributed or sold for use or used to generate power for the operation of motor vehicles upon the public highways or upon waters within the boundaries of this state. See Ohio Code 5735.01
(B) If the purchaser of the business fails to withhold the purchase money required to be withheld under this section, the purchaser of the business is personally liable for the payment of the taxes, interest, and penalties accrued and unpaid during the operation of the business by the seller, but only to the extent of the consideration offered for the entire business.
(C) For purposes of this section, “entire business” means substantially all of the seller’s assets determined without regard to any then existing mortgages, liens, security interests or other encumbrances attaching to those assets. A person is considered to have sold the entire business only if the person ceases to qualify as a motor fuel dealer and has relinquished or the tax commissioner has canceled the person’s motor fuel dealer’s license.