OT: explanation on how auctioneers can charge a higer sales tax % than a state's offical rate?

[Spud]

Brought this up in a thread on the Deckel forum but it's off topic in that thread.

Lately - past two years maybe - been seeing auctioneers charge sales tax % that is higher than the sales tax % for the state the machine is located in.

Two recent examples:
In this auction the sales tax is listed as 10.25%. The machine is located in Illinois. Illinois sales tax is 6.25%

Silverson High Shear Batch Mixer/Emulsifier, M# BX60, S/N 2CB2846, W/ Hydraulic Hoist & VFD Contr

Lot 4 at Day 1: Wockhardt Multi-Million Dollar 2-Day Auction: Late Model OTC Liquid Processing, Liquid Filling, Secondary Packaging, Huge Lab & Support from New Mill Capital.

www.bidspotter.com

Another example:
Auctioneer lists sales tax as 8.25% , applied to hammer price. Item located in Texas, where the sales Tax is 6.25%

Plant & Machinery, Inc. Auction Catalog - P&M Machine & Other Comp. Multi Location Auction Online Auctions | Proxibid

(6) LOCATIONS IN TEXAS & MISSISSIPPI TO BE SOLD IN ONE DAY! Late Model CNC & Manual Machine Tools; Gear Hobbers; Large Capacity Fabricating Equipment; CNC Beam Drill; Pipe Profiler; Forklifts; Trailer

www.proxibid.com

Any ideas on why the auction sales tax % is higher?

 

[Garwood]

I doubt they pay much of that sales tax they collect.

I've never paid sales tax. I send my business paperwork and pay the amount minus tax.

 

[Comatose]

Some places have a local sales tax that applies on top of the state tax. I know Ohio's sales tax rate varies from 6.5% to 8%, the state rate is 5.75.

 

[Bill D]

My Mother in the Sf bay area sales tax got as high as 10 percent. state tax was about 6 percent. county tax, bart tax, library tax, transportation/bridge/bus/ferry tax, park tax etc.
Of course in California food and drugs are tax free.
Bill D

 

[richard newman]

Some places have a local sales tax that applies on top of the state tax. I know Ohio's sales tax rate varies from 6.5% to 8%, the state rate is 5.75.

This.

Sales taxes in those 2 locations are exactly what the auctioneer stated. While I can easily believe any degree of dishonesty is possible in auctions, in this case it's accurate. Kinda sorry, I enjoy all the stories of sleazy auctioneers.

 

[Spud]

Some places have a local sales tax that applies on top of the state tax. I know Ohio's sales tax rate varies from 6.5% to 8%, the state rate is 5.75.

My Mother in the Sf bay area sales tax got as high as 10 percent. state tax was about 6 percent. county tax, bart tax, library tax, transportation/bridge/bus/ferry tax, park tax etc.
Of course in California food and drugs are tax free.
Bill D

That makes sense.

 

[Bill D]

It is a state crime to charge sales tax and not send it in to the state. Ask the state tax commissioner how they calculated their taxes for auctions. They will have to pay in any excess charged to buyers and/or refund to the buyers.
I suppose they have to declare that extra income as fraud fees to the IRS.

 

[Ries]

I doubt they pay much of that sales tax they collect.

I've never paid sales tax. I send my business paperwork and pay the amount minus tax.

You live in Oregon.
You dont have sales tax there, and you can usually get a refund if you buy something from another state if they make you pay it.
Most States, however, are pretty diligent about making businesses collect and pay sales tax.
I know I have been in business in California, and Washington, and both will shut down a business right quicklike if you dont pay sales tax.
It is true that state and local sales taxes are different from place to place- I often have to pay 2 different rates on sales, because some of my jobs legally require me to pay a different tax rate than the location of my shop.

 

[L Vanice]

Here is a breakdown of Chicago sales tax, which is probably typical of big cities in states where laws let local entities have taxing authority.

Chicago, Illinois Sales Tax Rate (2023) - Avalara

Look up 2023 sales tax rates for Chicago, Illinois, and surrounding areas. Tax rates are provided by Avalara and updated monthly.

www.avalara.com

CHICAGO TAX JURISDICTION BREAKDOWN FOR 2023

Illinois 6.25%

---

Cook County 1.75%

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Chicago 1.25%

---

Regional Transport. Authority (rta) 1%

---

Minimum combined sales tax rate value 10.25%

Accurate sales tax rates are determined by exact locations.

Larry

 

[Bill D]

My BIL said that in Michigan when he grew up around the start of school sales tax was cancelled for several weeks on blue jeans, socks, underwear, pencils, paper. He did not know about girl clothes.
Bill D