Final answer:
It is typically true that the state Board of Equalization issues a Certificate of Clearance when all sales taxes have been paid in the sale of a business, to safeguard both buyer and seller.
Step-by-step explanation:
In the context of a business sale, the statement that the state Board of Equalization will issue a Certificate of Clearance to indicate that all sales taxes have been paid is typically true.
This certificate is important for both the buyer and seller to ensure that the sales tax liabilities of the business being sold have been settled before the completion of the sale. This practice helps to protect the buyer from being held responsible for any unpaid sales taxes that were the obligation of the previous owner.
The payment of sales taxes is a critical aspect for any business operation. States depend on the revenue generated from these taxes to fund various government services. Sales taxes are imposed as a percentage of the retail sale price of goods and some services. Certain items may be exempt from sales tax, and rates can vary significantly across different jurisdictions.