JD Design Group, Inc. v. Graham

BENHAM, Justice.

This appeal concerns the liability of the purchaser of a business for unpaid sales taxes owed by the prior owner of the business. Joseph W. Ward formed JD Design Group, Inc. to operate a flower shop. JD Design bought most of the assets of an existing business, Parker’s Flower Shoppe, and JD Design’s sole shareholder Ward bought the real estate on which the business was operated, following which JD Design operated a florist business on that site. Although Parker stated in the asset purchase agreement that all taxes due had been paid, and although there were no tax liens…