sales tax on purchase

[marty]

Does anyone know the status on paying california sales tax on the purchase of an existing facility? My CPA says I can get a bulk sales permit allowing me to avoid paying the tax on purchase amount allocated to the equipment but I don't know how to approach this.

[Duane]

Check with your county's auditor office. They should be able to assist you in what needs to be done.

[neal]

There is sales tax on the equipment in California. You pay it when you get your sellers permit from the state

[marty]

Thanks Neal. How confident are you about this? Both my CPA and broker (PWS) have told me no sales tax is necessary on a mat purchase. Obviously, I'd like to avoid this tax as it is hefty if at all possible.

[neal]

I sold several business in the past 20 years and always paid tax on the equipment in California. Just call the state board of equalzition and ask. You dont have to give them any info to find out.