Taxes assessed but penalties denied for purchase of vehicle believed to be in liquidation.

Petitioner appealed a Notice of Proposed Assessment for Sales and Use Tax issued by the Department of Revenue.  A casual sale exemption applies where a company in liquidation sells personal property used in the operation of its business.  Believing a landscaping company to be in liquidation, Petitioner purchased a 2004 Ford truck from the company.  However, the company was not in fact liquidating assets.  Because Petitioner withheld taxes in the legitimate belief that the sale was conducted as part of a bona fide liquidation of business, Judge Beaudrot affirmed the Department’s tax assessment but denied the imposition of a penalty.