Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
295.0000 GROSS RECEIPTS
(g) SERVICE CHARGES GENERALLY
295.1661 Premium Fee Charged by Auctioneer. An auctioneer holding an auction on the campus of a university added a "premium fee" of 10% of the sales price to the invoice of all property sold at the auction. While the customers were told that the fee was tax deductible as a charitable donation, the premium fee represented reimbursement to the auctioneer for charges made by the university to hold the auction on campus.
There is no provision under section 6012 to exclude such charges from taxable gross receipts. Accordingly, the amount is subject to tax. 1/30/91.