If you sell your business to another person, you are required to file a final sales tax return within five days after the date of sale. Further, you are required to withhold a sufficient portion of the purchase money to pay the amount of any sales taxes, penalties and interest that is due and unpaid to the Borough. Any unpaid tax liabilities of a business that has been sold at the time of sale will become personal liabilities of the new owner.
Duty to Keep Books: Investigation
As a business owner, you are required to keep and preserve suitable records of all sales, including all invoices of goods purchased for resale and any other books or accounts for a period of two years. This retention is necessary for the Borough to determine the amount of tax for the collection of which you are liable, which are open for examination at any reasonable time by the Borough.
Resale Certificates: Misuse
The Finance department shall issue resale certificates to be utilized in purchases for resale, which are exempt from sales tax due to the exception providing governing items for resale. Resale certificates are valid for a period of one year and shall be reissued annually by the Borough. Resale certificates shall be surrendered when the holder ceases doing business.
Misuse of a resale certificate is a violation subject to penalty. Misuse of a resale certificate shall constitute a misdemeanor and is punishable by a fine up to $500, plus costs of prosecution, in addition to civil action that may be pursued by the Borough.