Section 66 Concept of a Statutory ?Successor?

• Library: Tax Law 2009

“To be a successor one must be a purchaser of the business property in question.” Bates v. Dir. of Revenue, 691 S.W.2d 273, 276 (Mo. banc 1985). A purchaser of an insubstantial portion of the vendor’s business or inventory is not a successor. “The intent of the statute is that the purported successor purchase all or substantially all of the business or stock of goods from the party who is liable for the tax, or from a successor thereto.” Air Mgmt. Supply, Inc. v. Dir. of Revenue, No. 97-000771 RV, 1998 WL 219792 (Mo. Admin. Hearing Comm’n, Apr. 23, 1998) (purchaser did not purchase sufficient assets to come within § 144.150, now RSMo 2000). But see Surrey’s on the Plaza, Inc. v. Dir. of Revenue, 128 S.W.3d 508 (Mo. banc 2004) (substantially all of the business of one of a corporation’s several businesses was sold, thereby activating § 144.150). Accordingly, a purchaser...