An auction is the buying and selling of goods through a bidding system. An auctioneer is a person who manages an auction by offering items for bid, taking bids, and then selling the items to the highest bidder. Auctioneers are retailers in the business of selling tangible personal property. Auctioneers act as intermediaries between buyers and sellers; they might not have the title to the goods sold.
When a buyer purchases goods at an auction, the sale is between the buyer and the auctioneer. The buyer makes payment to the auctioneer. If there’s a problem with the sale, the buyer will contact the auctioneer to resolve the issue.
Idaho state law requires auctioneers, agents, brokers, distributors, and factors who facilitate the sale of tangible personal property to collect and remit tax on retail sales unless a valid exemption exists. They must collect sales tax even if Idaho law wouldn’t require the property owner to collect the tax.
- Example: An auctioneer sells a vehicle owned by the federal government. The federal government is exempt from collecting tax. Idaho law still requires the auctioneer to collect tax because the auctioneer is making the sale.
Most auctioneers charge a buyer’s fee (generally 10% – 15% of the sale). Buyers pay this fee to get the tangible personal property they purchased in the auction. Buyer’s fees are taxable.
Out-of-state sales
Sales tax doesn’t apply to sales of tangible personal property that the seller delivers outside Idaho using a common carrier, U.S. mail, or seller’s delivery service.
The seller must keep records to support the sales tax exemption. This includes shipping bills of lading, postal receipts, or invoices that show the out-of-state destination with supporting documents.
If the buyer picks up the tangible personal property in Idaho or pays a third party to pick up the property and deliver it outside Idaho, the sale is subject to Idaho sales tax. That’s because the transfer of title has occurred in Idaho.
Out-of-state purchases
Use tax applies when an Idaho buyer purchases goods outside of Idaho that they use or store in Idaho. Learn more on our Use Tax page.