Before the passage of HB 1294, the definition of a change of ownership (CHOW) differed according to the type of ownership structure. The following were considered CHOWs:
- for partnerships: dissolution of the partnership or substitution of a partner
- for sole proprietors: transfer of the title to the business, but if the individual decided to form a corporation with the owner as the single shareholder, it was not a CHOW.
- for corporations: any transaction that involved a change in at least 75 percent of the ownership
- for a limited liability company (LLC): a transfer of 50 percent or more of the ownership or dissolution and conversion to another entity type accompanied by a change in principals.
- for all types of ownership structure: transfer of at least 50 percent of the direct or indirect ownership to one or more new owners.