Auction sales; application of exemption

Sec. 35. (a) An auction that meets all of the following conditions is casual sale and is therefore not subject to sales tax:

(1) The sale must be on premises owned or provided by the owner of the tangible personal property being sold and not the

auctioneer.

(2) The tangible personal property must not have been purchased for resale nor consigned by a third party for

sales.

(b) Auctions which do not meet the above conditions are subject to sales tax.

(c) In the event that certain tangible personal property being sold at a particular auction sale meets the above conditions but other property

fails to meet such conditions sales tax must be collected on the sale of all property failing to meet the conditions.

(d) If such a taxable sale is conducted by a licensed auctioneer, the auctioneer is a retail merchant with respect to the property being sold

and is responsible for the collection of the sales tax thereon.

(e) If such a sale is conducted by the owner or consignee (or his agent other than a licensed auctioneer), the owner, (consignee) becomes

a retail merchant and must collect sales tax on the property being sold.

(f) Before conducting a taxable sale as defined above, a licensed auctioneer or owner (consignee) must obtain a Registered Retail Merchant

Certificate from the Department of Revenue.