DIYbanter - View Single Post - Anyone have a price & quality opinion on this jointer....

dpb

On 18-Oct-17 7:50 PM, wrote:
....

Sales tax on auction items? I have been to a few farm auctions, and
there is no sales tax. The buyer's premium is possible. But sales
tax on a used item?

NE law--

"An auction is a sale of land, property, or services to the highest
bidder. An auctioneer is a person authorized to sell property and
services at auction for a commission or fee."

"Auctioneers are retailers and must obtain a Nebraska Sales Tax Permit.
Auctioneers are required to collect and remit the appropriate sales tax
on all sales, unless a specific exemption applies. The auctioneer must
retain documentation in his or her business records supporting all
non-taxed sales."

....

"Farm Auctions. Household goods, personal effects, tools, miscellaneous
items, and farm machinery and equipment sold at a farm sale conducted,
supervised, or aided by an auctioneer are taxable.
Agricultural machinery and equipment that is used directly in the
cultivating or harvesting of a crop, the raising or caring of animal
life, or the collecting or processing of an agricultural product on the
farm or ranch is exempt from tax with a completed Nebraska Resale or
Exempt Sale Certificate, Form 13, from the buyer. For additional
information regarding this exemption and types of qualifying machinery
and equipment please see the Agricultural Machinery and Equipment
Information Guide.

When the auctioneer makes sales of qualified agricultural machinery and
equipment, he/she is acting like a farm implement dealer and must charge
the sales tax on machinery and equipment at farm auctions unless the
buyer completes a Form 13."

I know no other state in the area surrounding us and including KS that
doesn't have essentially identical law. KS is a little "more simpler"
for farm use declaration in that the purchaser can have an exempt
certificate on file rather than having to have specific certificate in
hand. But, in theory, anything other than the specifically-exempted
production equipment is taxable if the auction is conducted by auctioneer.

Individual one-on-one sales are _not_ covered and are exempt.

States will make every effort to tax any and all financial activity
wherever and however it takes place that they have any hope whatever of
collecting.

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