ST 1991-01 - Auctioneers - May, 1991
This information release is issued to reiterate the
Department's position regarding sales made by auctioneers.
Auctioneers are responsible for the collection and remittance
of sales tax on all sales made by them EXCEPT for:
1) Those sales where the owner of the goods sold at auction
at the owner's place of business is engaged in the business
of selling those goods (i.e. inventory), in which case, the
auctioneer is deemed to be the agent of the owner and the
owner is responsible for collection and remittance of the tax
on each taxable transaction;
2) Those casual sales of items previously acquired for the
seller's use which are sold by an auctioneer employed
directly by a person for such purposes, provided the location
of such sales is not the auctioneer's permanent place of
business. "Permanent place of business" is any location where
the auctioneer has conducted more than two auctions during a
twelve month period; or
3) Those sales where exemption from sales tax is claimed by
the purchaser and a properly executed exemption certificate
is obtained, where the identity of the purchaser is such that
the transaction is never subject to the tax, or the item sold
is never subject to the tax.
The application of the tax to the purchase of several items
by a customer at an auction depends on the auctioneer's
method of settlement. If the auctioneer collects for each
item as it is sold, the tax is computed on each individual
sale. If the auctioneer collects for several items under one
settlement, the tax may be computed on the total amount
purchased by the customer.
Auctioneers who sell motor vehicles, manufactured homes,
titled watercraft, and titled outboard motors must indicate
the selling price in the proper place on the certificate of
title at the time of sale. The sales tax will be collected by
the Clerk of Courts when the new title is obtained by the
purchaser.
Auctioneers are required to have a vendor's license for each
permanent place of business.
Vendors are required to maintain records as set forth in
Section 5739.11 of the Revised Code and 5703-9-02 of the
Administrative Code.
If you have any questions regarding this matter, you should
call us at 1-888-405-4039.
OHIO RELAY SERVICES FOR
THE HEARING OR SPEECH IMPAIRED
Phone: 1-800-750-0750