Texas Comptroller of Public Accounts
Form
50-290
Page 2
Texas Business and Commerce Code
Chapter 17. Deceptive Trade Practices
Subchapter F. Going Out of Business Sales
§ 17.81. Denition
In this chapter “going out of business sale” means an offer to sell to the
public, or the sale to the public of, goods, wares, and merchandise on
the implied or direct representation by written or oral advertising that
the sale is in anticipation of the termination of all of the operations of
a business at all of its locations in a county and in all of the counties
immediately adjacent to that county.
§ 17.82. Prohibited Conduct
(a) A person may not conduct a sale advertised with the phrase “going
out of business,” “closing out,” “shutting doors forever,” or “bank-
ruptcy sale”; the word “foreclosure” or “b
ankruptcy”; or a similar
phrase or word indicating that an enterprise is ceasing business
unless the business is closing all of its operations in a county and
in all of the counties immediately adjacent to that county and fol-
lows the procedures required by this subchapter.
(b) A person may not fraudulently represent that the person is con-
ducting a going out of business sale.
§ 17.83. Original Inventory
(a) To conduct a going out of business sale, a person must le an
original inventory with the chief appraiser of the appraisal district
in which the person’s principal place of bus
iness in the state is
located. The original inventory must be accompanied by a ling fee
of $20.
(b) The original inventory must include:
(1) the name and address of the owner of the goods, wares, or
merchandise to be sold;
(2) the name and address of the owner of the defunct business,
the former stock in trade of which is to be offered for sale, and
the full name of the defunct business;
(3) a description of the place where the liquidation sale is to be
held;
(4) a statement of the beginning and ending dates of the sale;
(5) a complete and detailed inventory of the goods, wares, and
merchandise to be offered on the beginning date of the sale
and the total cost of those items; and
(6) a complete and detailed list of the goods, wares, and merchan
dise to be added to the inventory after the beginning date of the
-
sale and the total cost of those items.
§ 17.835. Notice of Filing of Original Inventory
Not later than the fth business day after the date on which a person
les an original inventory under Section 17.83, the chief appraiser
shall send notice of the ling to the comptroller, the county clerk of the
county in which the person’s principal place of business in the state is
located, and the tax collector for each of the taxing units that tax the
property described in the original inventory.
§ 17.84. Permit
(a) After receiving an original inventory, the chief appraiser shall issue
to the applicant a permit for a going out of business sale. The
permit is valid for 120 days after the day that it is i
ssued and is not
renewable.
(b) The permit holder must post the permit in a conspicuous place at
the location of the going out of business sale.
(c) Before advertising a going out of business sale, the permit holder
shall deliver a copy of the permit to the person publishing or broad-
casting the advertisement.
§ 17.85. Deadline for Orders
A person may not sell an item at a going out of business sale if the
person ordered the item after the beginning date of the sale.
§ 17.86. Sale Inventory
Before the end of each 30-day period during the going out of busi-
ness sale the permit holder shall le with the chief appraiser a sale
inventory containing a complete and detailed list of the goods, wares,
and merchandise listed in the original inventory that have not been
sold before the date that the sale inventory is led. A sale inventory
must list items offered on the beginning date of the sale separately
from the items added to the sale inventory after that date.
§ 17.87. Final Inventory
Within 30 days after the day that the going out of business sale ends,
the permit holder shall le with the chief appraiser a nal inventory.
The nal inventory must include:
(1) the name and address of the permit holder;
(2) a statement of the disposition of the items listed in the original
inventory that were not sold during the going out of business sale
and the name and address of any person purchasing those items
after the ending date of the sale; and
(3) a description of the place where the sale was held.
§ 17.88. Disposition of Sale Items
After a permit expires, the permit holder may not sell at retail an item
offered at the sale covered by the permit.
§ 17.89. Later Sales
A person may not conduct a going out of business sale beginning
within two years after the ending date of the most recent going out of
business sale conducted by the person.
§ 17.90. Form of Inventory
An inventory led under this subchapter must be in the form of a
sworn affidavit.
§ 17.91. Exceptions
This subchapter does not apply to:
(1) a sale conducted by a public officer as part of the officer’s official
duties;
(2) a sale for which an accounting must be made to a court of law;
(3) a sale conducted pursuant to an order of a court; or
(4) a foreclosure sale pursuant to a deed of trust or other lien.
§ 17.92. Penalty
(a) A person commits an offense if the person:
(1) conducts a sale in violation of Section 17.82 of this code;
(2) conducts a going out of business sale without a valid permit
issued under Section 17.84 of this code;
(3) sells an item at a going out of business sale in violation of
Section 17.85 of this code;
(4) fails to le an inventory required by Section 17.86 or 17.87 of
this code; or
(5) sells an item at retail in violation of Section 17.88 of this code.
(b) An offense under this section is a Class A misdemeanor.
(c) Each day of violation constitutes a separate offense.
§ 17.93. Injunction
The attorney general may bring an action to enjoin a violation of this
subchapter.
For more information, visit our website: comptroller.texas.gov/taxes/property-tax
50-290 • 03-17/3
