ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.05. Auctioneer.
(1) An auctioneer is engaged in a business which is subject to sales
tax where as a course of business he makes sales at retail of his own tangible
personal property or makes sales at retail of tangible personal property
owned by others which is consigned to him for sale.
(2) For the purpose of administering the sales tax law, it is deemed
that the auctioneer will have the property on consignment when he receives
payment for the property sold, issues his bill of sale or invoice, and
pays the owner for the property sold with his check or other remittance.
An auctioneer does not become liable for sales tax when selling tangible
personal property not owned by him where the owner has commissioned the
auctioneer to make such sales in the name of the owner and for him in the
operation of a business licensed under the sales tax law.
(3) The sales tax will apply upon the gross receipts derived from sales
of all tangible personal property sold by persons regularly engaged in
conducting auction sales, regardless of how such tangible personal property
may have been acquired or by whom it may be owned, except the sale of tangible
personal property which normally would not be subject to tax such as a
wholesale sale. (Section 40-23-1(a)(6)) (Adopted March 9, 1961, amended
June 2, 1961, amended August 16, 1974, readopted through APA effective
October 1, 1982)
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