Transferee tax liability

Definition

The buyer's own liability for lodging tax the seller collected from guests and never remitted.

Why It Matters

The tax added to a guest's bill is state money from the moment it is taken, and an innkeeper who spends it has not incurred a debt. Florida then puts the exposure on the BUYER: a transferee of more than half a business is liable for the seller's unpaid tax unless the seller produces a clearance or an audit clears them, jointly and severally, capped at the greater of fair market value and the price paid, which for a small inn is the whole deal. The defense is written into the statute, which lets a buyer withhold part of the consideration and pay it to the state within thirty days of the transfer.