# Transferee tax liability

A term used when buying bed and breakfast.

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

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. For a small inn that 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.

Part of: Buying a Bed and Breakfast (https://searchspheresource.com/guides/buying-a-bed-and-breakfast)

Source: https://searchspheresource.com/guides/buying-a-bed-and-breakfast/terms/transferee-tax-liability
Not dated: The same editorial definitions as the glossary, inside a trade.

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