Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
185.0000 CONSIGNEES AND LIENORS OF TANGIBLE PERSONAL PROPERTY FOR SALE—Regulation 1569
185.0010 Consignee of Tangible Personal Property. A taxpayer contracts with customers to help them sell their pianos. Under the terms of the agreement the taxpayer will appraise the piano for a fee, recommend a suggested selling price, list the piano in the taxpayer's computer listing, and use his/her best efforts to sell the piano. For this purpose the taxpayer generally takes possession of the piano while holding it for sale.
Under the terms of the listing agreement the owner authorizes the taxpayer to sell the piano for a minimum stipulated price without further approval from the owner. In addition, the taxpayer is authorized to receive money, sign a bill of sale, and act as the owner's authorized agent in all matters pertaining to the sale. As such, the taxpayer is the retailer of the piano and the transaction is subject to sales tax unless otherwise exempt. However, where the taxpayer must, in order to make a sale, seek special approval from the owner on a matter that is outside the scope of the listing agreement (e.g., make repairs to the piano), the taxpayer is not a retailer but is acting as a broker. 7/21/92.