Why is the transfer of real estate used for income purposes be considered a bulk sale?
The bulk sale statute as enacted in 2007 as well as prior to 2007 never exempted real estate. The 2007 amendment, among other changes, required the collection of not just sales tax, but of all State taxes. Accordingly, this broadened the scope to all the taxes the Division administers that were not covered by the original statute in the sales and use tax law, including gross income tax on gains from the sale of real estate. Since there was no penalty (such as a fine) for not filing a notice of sale, transfer, or assignment in bulk, other than the transfer of tax liability prior to the change, if an entity owning real estate did not have sales or business personal property tax obligations (as an owner of commercial real estate often would), the Division could not seek collection of tax on income gain from the sale of residential real property, even where that property included income producing assets. Therefore, the 2007 change in the law now requires the purchaser of income producing p
