The Bulk Sale Statute protects a purchaser from inheriting tax debt from a seller. Bulk sale is the sale of an individual’s or company’s business assets, in whole or in part outside of the ordinary course of business. Business assets may include but are not limited to real property. It is the responsibility of the Purchaser to notify the Bulk Sale Division at least 10 business days in advance of the sale. This allows the state to determine an escrow for potential tax obligations that the seller may have.
- A complete application should include a C9600 form along with the following:
- Valid New Jersey tax ID numbers for both the seller and purchaser;
- A specific closing date, which must be at least 10 business days after submission;
- Proper mailing addresses for both parties and/or their attorneys;
- Signatures of the purchaser or the purchaser's attorney;
- A copy of the executed contract of sale, court order, or assignment agreement clearly showing the sales price and all the terms and conditions of the transfer.
After the state’s receipt of the completed C9600 forms along with the required documentation, the state will send an escrow letter advising both parties of a required escrow if any. A seller can subsequently submit a TTD form in an effort to reduce or eliminate the amount of the escrow.
- It is recommended that all forms be submitted as early in the closing process as possible, to avoid any delays.