AI-assisted research summary: A transferee of a vending machine business must notify and register with the department within the stated time if it wants to keep using the tax option.
Notwithstanding § 67-4-309(b), the transferee of a vending machine business upon which the transferor has paid tax on an annual basis under § 67-4-506, desiring to continue to operate under the option as afforded by such section, shall, within thirty (30) days after the date of transfer, or the next following July 1, whichever is sooner, notify the department of its intent and also register the new business and each transferred vending machine with the department in the name of the transferee. In connection with the transfer, the transferee shall pay such costs and fees as provided in § 67-4-506, but no additional gross receipts tax shall be due for any remaining period for which the transferor has paid applicable gross receipts taxes. However, when any such transferee desiring to continue to exercise the option afforded in § 67-4-506 shall fail to notify the department and to register, as required, the transferee shall not be permitted to exercise such option prior to the next following July 1, until and unless there shall have been paid, in addition to the costs and fees provided in § 67-4-506, a specific penalty in the amount of one dollar ($1.00) for each transferred vending machine for each month, or any fractional part thereof, during which such failure continues following expiration of the thirty (30) days after the transfer. Furthermore, if the option to pay the tax under § 67-4-506 is not exercised as provided prior to the next July 1 following the transfer, then such transferee shall be required to pay the sales tax as provided by law for a period of not less than twelve (12) months. The transferee of a vending machine business taxable under § 67-4-506, shall notify the department of the transfer and also register each transferred vending machine with the department under § 67-4-506 as set out in subsection (a), whether or not the transferor of such machines was operating under the option referred to in subsection (a). Such notification and registration shall be made within the period specified in subsection (a), and the operation of any transferred machine beyond such period without compliance with these requirements is unlawful and the transferee shall be subject to the imposition of penalties otherwise provided for in § 67-4-220.