Auctions - Auctioneers, agents, and public auctions

Every auctioneer or agent acting for an unknown or undisclosed principal, entrusted with the possession of any bill of lading, customhouse, or warehouseman's receipt for delivery of any tangible personal property for the purpose of sale, is the owner. Upon the sale of such property, the individual is required to file a return and pay sales tax. This rule applies to lienholders, such as storagemen, pawnbrokers, mechanics, and artisans. Auctioneers are retailers if they conduct a sale at which tangible personal property owned by any other retailer is sold. Sales of property submitted to the auction by nonretailers are casual sales and are not subject to sales or use tax. Sales of goods not taxable as a casual sale are taxable if made through consignment auctions or multiparty auctions unless the principals and their specific consigned property are disclosed on all promotional material. Casual sales of consigned goods not part of any promotional material are exempt from tax if a verbal disclosure of the owner is made at the time of the sale, and if the auction is not promoted as a consignment sale. Community sales and auction houses are retail establishments, the gross receipts of which are subject to sales tax. If the auctioneer is employed by the operator of a public auction, the operator is liable for the payment of sales tax. A public auction held to dispose of tangible personal property of an individual is a casual sale, the receipts of which are not taxable.