Going Out of Business SalesChief Appraiser Assigned Permit and Reporting Duties
Effective September 1, 2001, chief appraisers received some new duties under Texas law. They are now responsible for issuing permits and reporting persons that conduct a "going out of business" sale.
House Bill (H. B.) 394 amended the Business and Commerce Code Sections 17.83 through 17.87. Those sections require a person who is going out of business to file inventories of unsold items with the chief appraiser, rather than the county clerk.
A person who conducts a "going out of business" sale must file an original inventory with the chief appraiser for the county in which the person's principal place of business is located, along with a $20 filing fee. An inventory filed must be in the form of a sworn affidavit.
The original inventory must include:
- name and address of the owner of the goods, wares, or merchandise to be sold;
- name and address of the owner of the defunct business, the former stock in trade of which is to be offered for sale, and the full name of the defunct business;
- description of the place where the liquidation sale is to be held;
- statement of the beginning and ending dates of the sale;
- complete and detailed inventory of the goods, wares, and merchandise to be offered on the beginning date of the sale and the total cost of those items; and
- complete and detailed list of the goods, wares, and merchandise to be added to the inventory after the beginning date of the sale and the total cost of those items.
Within five business days of this filing, the chief appraiser sends notice to the state comptroller, county clerk, and tax collector of each taxing unit taxing the property. The chief appraiser (rather than the county clerk) will issue a "going out of business" permit. The permit is valid for 120 days after the day that it is issued and is not renewable.
In sending the notice to the State Comptroller, the chief appraiser should address the notice to Enforcement Division, Comptroller of Public Accounts, Capital Station, Austin, Texas 78774-0001.
The permit holder files 30-day and final inventory lists with the chief appraiser. Before each 30-day period during the going out of business sale, the permit holder shall file with the chief appraiser a sale inventory containing a complete and detailed list of the original inventory that has not been sold before the date that the sale inventory is filed. A sale inventory must list items offered on the beginning date of the sale separately from the items added to the sale inventory after that date.
Thirty days after the day that the going out of business sale ends, the permit holder shall file with the chief appraiser a final inventory. The final inventory must include:
- name and address of the permit holder;
- statement of the disposition of the items listed in the original inventory that were not sold during going out of business sale and name and address of any person purchasing those items after the ending date of the sale; and
- description of the place where the sale was held.
A person may not conduct a going out of business sale beginning within two years after the ending date of the most recent going out of business sale conducted by the person.
A person commits a Class A misdemeanor for violating these provisions of Subchapter F, Chapter 17, Texas Business and Commerce Code.
To assist the chief appraiser in these duties, the Comptroller has prescribed two model forms. The "Going Out of Business Sale" Permit Application (Comptroller Form No. 50-290). The back of this form has the text of Subchapter F, Going Out of Business Sale, from Chapter 17, Texas Business and Commerce Code.The person requesting the permit submits this completed form, a $20 filing fee, and a detailed inventory of the goods, ware, and merchandise to be sold. An inventory filed must be in the form of a sworn affidavit.
The chief appraiser then issues a Going Out of Business Sale Permit (Comptroller Form No. 50-291).
This permit is not required for sales conducted by a public officer as part of the officer's official duties, required by a court of law, or a foreclosure sale pursuant to a deed of trust or other lien.
For more information or a copy of these forms, contact the Property Tax Division's Technical Assistance at email@example.com or call 1-800-252-9121. In Austin, call 512/305-9999.