In the case of an asset purchase, many of the assets will be subject to a lower tax rate, but some assets, such as inventory, will be taxed as ordinary income. In an asset sale, the new owner purchases the business's physical assets.The seller retains all rights to the legal entity. This recent Georgia case is one of many that emphasizes how not filing a tax bulk sales notice in the asset sales of a business can be costly to the buyer. In an asset sale, the buyer selects specific assets and typically avoids inheriting liabilities. The entire business, or an identifiable division, must be sold. So each state's exemption must be reviewed for particular requirements that must be satisfied. Dealers may be permitted to file sales and use tax returns on a quarterly, annual or special period basis as specified below. Business owners in Georgia are required to pay taxes on the sale of their business, which varies depending on several factors.