Fillable Form 50-290 - "Going Out Of Business Sale" Permit Application (Page 2 of 2) in pdf

P r o p e r t y T a x

“ G o i n g O u t o f B u s i n e s s S a l e ” P e r m i t A p p l i c a t i o n

Form 50-290

Texas Business and Commerce Code

Chapter 17. Deceptive Trade Practices

Subchapter F. Going Out of Business Sales

§ 17.81. Definition

§ 17.85. Deadline for Orders

In this chapter “going out of business sale” means an offer to sell to the

A person may not sell an item at a going out of business sale if the

public, or the sale to the public of, goods, wares, and merchandise on

person ordered the item after the beginning date of the sale.

the implied or direct representation by written or oral advertising that

§ 17.86. Sale Inventory

the sale is in anticipation of the termination of all of the operations of

Before the end of each 30-day period during the going out of business

a business at all of its locations in a county and in all of the counties

sale the permit holder shall file with the chief appraiser a sale inven-

immediately adjacent to that county.

tory containing a complete and detailed list of the goods, wares, and

§ 17.82. Prohibited Conduct

merchandise listed in the original inventory that have not been sold

(a) A person may not conduct a sale advertised with the phrase “going

before the date that the sale inventory is filed. A sale inventory must

out of business,” “closing out,” “shutting doors forever,” or “bank-

list items offered on the beginning date of the sale separately from the

ruptcy sale”; the word “foreclosure” or “bankruptcy”; or a similar

items added to the sale inventory after that date.

phrase or word indicating that an enterprise is ceasing business

§ 17.87. Final Inventory

unless the business is closing all of its operations in a county and

Within 30 days after the day that the going out of business sale ends,

in all of the counties immediately adjacent to that county and fol-

the permit holder shall file with the chief appraiser a final inventory.

lows the procedures required by this subchapter.

The final inventory must include:

(b) A person may not fraudulently represent that the person is con-

(1) the name and address of the permit holder;

ducting a going out of business sale.

(2) a statement of the disposition of the items listed in the original

§ 17.83. Original Inventory

inventory that were not sold during the going out of business sale

(a) To conduct a going out of business sale, a person must file an

and the name and address of any person purchasing those items

original inventory with the chief appraiser of the appraisal district

after the ending date of the sale; and

in which the person’s principal place of business in the state is

(3) a description of the place where the sale was held.

located. The original inventory must be accompanied by a filing fee

§ 17.88. Disposition of Sale Items

of $20.

After a permit expires, the permit holder may not sell at retail an item

(b) The original inventory must include:

offered at the sale covered by the permit.

(1) the name and address of the owner of the goods, wares, or

merchandise to be sold;

§ 17.89. Later Sales

(2) the name and address of the owner of the defunct business,

A person may not conduct a going out of business sale beginning

the former stock in trade of which is to be offered for sale, and

within two years after the ending date of the most recent going out of

the full name of the defunct business;

business sale conducted by the person.

(3) a description of the place where the liquidation sale is to be

held;

§ 17.90. Form of Inventory

(4) a statement of the beginning and ending dates of the sale;

An inventory filed under this subchapter must be in the form of a sworn

(5) a complete and detailed inventory of the goods, wares, and

affidavit.

merchandise to be offered on the beginning date of the sale

§ 17.91. Exceptions

and the total cost of those items; and

This subchapter does not apply to:

(6) a complete and detailed list of the goods, wares, and merchan-

(1) a sale conducted by a public officer as part of the officer’s official

dise to be added to the inventory after the beginning date of the

duties;

sale and the total cost of those items.

(2) a sale for which an accounting must be made to a court of law;

§ 17.835. Notice of Filing of Original Inventory

(3) a sale conducted pursuant to an order of a court; or

Not later than the fifth business day after the date on which a person

(4) a foreclosure sale pursuant to a deed of trust or other lien.

files an original inventory under Section 17.83, the chief appraiser

§ 17.92. Penalty

shall send notice of the filing to the comptroller, the county clerk of the

(a) A person commits an offense if the person:

county in which the person’s principal place of business in the state is

(1) conducts a sale in violation of Section 17.82 of this code;

located, and the tax collector for each of the taxing units that tax the

(2) conducts a going out of business sale without a valid permit

property described in the original inventory.

issued under Section 17.84 of this code;

§ 17.84. Permit

(3) sells an item at a going out of business sale in violation of Sec-

(a) After receiving an original inventory, the chief appraiser shall issue

tion 17.85 of this code;

to the applicant a permit for a going out of business sale. The

(4) fails to file an inventory required by Section 17.86 or 17.87 of

permit is valid for 120 days after the day that it is issued and is not

this code; or

renewable.

(5) sells an item at retail in violation of Section 17.88 of this code.

(b) The permit holder must post the permit in a conspicuous place at

(b) An offense under this section is a Class A misdemeanor.

the location of the going out of business sale.

§ 17.93. Injunction

shall deliver a copy of the permit to the person publishing or broad-

The attorney general may bring an action to enjoin a violation of this

casting the advertisement.

subchapter.

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Page 2 • 50-290 • 06-12/2

Form 50-290 - "Going Out Of Business Sale" Permit Application Page 2

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