Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
280.0000 GIFTS, MARKETING AIDS, PREMIUMS AND PRIZES— Regulation 1670
280.0766 Items Donated for Auction Sale. Only one tax is imposed when an automobile purchased by a dealer under a resale certificate is sold at auction through an educational television station which keeps the proceeds and (1) the television station has accepted the automobile for sale subject to return if it is not
sold, (2) there is no transfer of registration to the station, and (3) the dealer handles the registration on behalf of the purchaser and reports and pays tax on the sale.
The basis for this conclusion is that the dealer is merely donating the receipts from the sale of the vehicle. If a nonretailer donates the item, tax would apply to the sale of the item at auction. Even though the station may be acting as a trustee or agent, the station is an auctioneer and, therefore, is a retailer assuming it auctions a number of items. 5/15/68.