Information Release

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.

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