The 77th Legislature amended the state's deceptive trade practices laws to provide for issuance of the permit by the appraisal district in which the business that is closing is located. A person may not conduct a sale advertised with the phrase 'going out of business,' 'closing out,' 'shutting doors forever,' 'bankruptcy,' or similar words or phrases indicating that a business is ceasing operations unless it is closing all of its operations in a county and in all of the counties immediately adjacent.
The purpose of the statute is to protect consumers from being victimized by fictitious sales conducted by persons who have no intention of closing their business.
The law provides that to conduct a going out of business sale, a person must file a sworn permit application and original inventory with the chief appraiser of the county in which the business is located, and pay a $20 filing fee.
SCAD's chief appraiser will then issue a non-renewable permit for the sale, which is valid for 120 days from the date of issuance.
The law requires the business owner to file a supplemental inventory with the appraisal district every 30 days, and a final inventory at the end of the 120-day period. After a permit expires, the permit holder may not sell at retail an item offered at the sale covered by the permit.
Violations of the statute constitute a Class A misdemeanor, punishable by a fine not to exceed $4,000 and or confinement in jail for no more than a year, with each day of violation constituting a separate offense.
Additional information may be obtained by calling the appraisal district's office at 903-510-8600.
Click to view and download the Going Out of Business Permit