California Dentist Office Sales Properly Drew $950,000 in Taxes

A company that sold off some of its dental practices can’t use California’s occasional sale exemption to avoid owing more than $950,000 in sales tax, a state panel ruled in a ruling released Monday.

Coast Dental Services Inc. sold the practices and associated assets in 25 sales to 15 buyers within a period of five months. The California Office of Tax Appeals rejected the company’s argument that the transactions were part of a single sale of its entire California-based dental practice.

Coast failed to demonstrate how the terms of the 25 contracts show the transactions’ interdependence or fulfill a common ...