§ 6-1.428. Transferee and Successor Liability.

(a)

The liability at law or in equity of a successor, transferee or alter ego of any taxpayer or other person determined to be liable for any tax, interest or additional cost subject to this ordinance, imposed upon a taxpayer shall be determined, collected and paid in the same manner and subject to the same provisions and limitations as in the case of a deficiency determination pursuant to Section 6-1.409. Nothing in this subsection shall be construed to limit the rights or procedures available to the Tax Collector to collect from any successor, transferee or alter ego, at law or in equity, as may be provided under California statutory or decisional law.

(b)

No person shall purchase or acquire an interest in a business subject to any tax imposed under this Code without first obtaining either a receipt from the Tax Collector showing that all of the seller's taxes on the business have been paid, or a certificate stating that no amount is due. For purposes of this section, "purchase" shall include any other voluntary transfer for consideration of a business, except for purchase of stock of a publicly-traded company.

(c)

The Tax Collector shall issue such a receipt or certificate, or a notice of the amount that must be paid as a condition of issuing the certificate, to the buyer within thirty (30) days after receiving a written request. However, failure of the Tax Collector to timely mail the notice will not release the buyer from his or her obligations under this section, except to the extent of penalties and interest in the event that the Tax Collector enforces the buyer's obligation in a civil action authorized pursuant to this Code.

(d)

If the buyer purchases or acquires an interest in a business owing any taxes, interest or penalties imposed under this Code, the buyer shall withhold from the purchase price a sufficient amount to satisfy said taxes, interest and penalties.

(e)

If the buyer purchases or acquires an interest in a business in violation of this section, the buyer shall become personally liable for the amount of taxes, interest and penalties owed on the business.

(f)

The buyer's obligations shall accrue at the time the business is purchased or the interest acquired, or at the time the Tax Collector determines the seller's final liability, whichever is later.

(Added by Ord. 3266-C.S., § 2, effective 9-26-02)