Sec.12-2-9. Request by a purchser for a clearance certificate pertaining to taxes imposed by chapter 219

(a) In general. Any person who purchases the business or stock of goods of a retailer is requried under section 12-424 (1) to withhold a sufficient amount of the purchase price to cover the liability of such retailer for the taxes imposed under chapter 219 (the sales and use taxes). The purchaser shall turn over such amount if and only if such retailer furnishes either a receipt from the commissioner showing that such liability has been paid or a certificate (the clearance certificate) from the commissioner stating that no taxes imposed under chapter 219 are due. Section 12-424 (2) allows the purchaser to request a clearance certificate. A condition precedent to the issuance of a clearance certificate is the payment of the liability of such retailer for the taxes imposed under chapter 219. Subsection (b) of this section describes the required content of the request by such purchaser for a clearance certificate from the commissioner. Subsection (c) of this section describes the procedure which must be followed in making a request for a clearance certificate. Subsection (d) of this section describes the procedure which must be followed by the commissioner in dealing with a request for a clearance certificate.

(b) Required contents of request. The required contents of the request for a clearance certificate include –

(1) the name and address of the purchaser;

(2) the tax registration number, if any, assigned to the purchaser by the commissioner;

(3) the name and address of the retailer;

(4) the tax registration number assigned to the retailer by the commissioner;

(5) the purchase price, including the fair market value of any consideration other than money, paid or transferred directly or indirectly to the retailer by the purchaser, incdluding the amount of any liability to which property purchased by the purchaser from the retailer is subject, and the amount of any liability of the retailer to the purchaser offset against the purchase price;

(6) a copy of the purchase agreement and any attachments thereto.

The notice of transfer required by section 42a-6-106 (Uniform Commercial Code —Bulk Transfers) shall not constitute a request for a clearance certificate, even if the commissioner is a creditor of the transferor and the transferee gives notice of the transfer to the commissioner in the manner provided in section 42a-6-106.

(c) Procedure to be followed in making a request for a clearance certificate. The request for a clearance certificate shall be served by registered or certified mail in a plain cover, envelope or other appropriate wrapper, postage prepaid, to the following address: Department of Revenue Services, 92 Farmington Avenue, Hartford, Connecticut 06105, Attn: Division Chief, Office Services Subdivision, Audit Division. The caption "REQUEST FOR CLEARANCE CERTIFICATE" must appear on the cover, envelope or wrapper.

(d) Procedure to be followed by the commissioner in dealing with a request for a clearance certificate. The officer who is specified in subsection (c) of this section shall determine whether the request meets the requirements of subsections (b) and (c) of this section. If the request fails to meet such requirements, such officer shall send notice of such failure to the person who made such request. In such event, such person will be deemed not to have made a request for a clearance certificate. If the request meets the requirements of subsections (b) and (c) of this section, such officer shall send notice of the amount which must be paid as a condition precedent to the issuance of a clearance certificate or, if no amount must be paid, shall send a clearance certificate. If the notice of the amount which must be paid is not sent within sixty days of the receipt of the request for a clearance certificate, the purchaser shall not be liable for any unpaid taxes imposed under chapter 219 on the retailer. The notice of the amount which must be paid will be deemed to have been sent on the date shown by the post office cancellation mark stamped upon the cover, envelope or other wrapper.

(Effective December 19, 1984)