Auction Houses and Sales Tax

[Fred]

Originally Posted by BobC

3. The "seller's permit thingy" is more often than not called a sales tax exemption certificate. A buyer/customer who meets one of the allowable exceptions/reasons in the particular state they are in for not having to pay sales or use tax can fill one out and give it to the seller, and the seller doesn't have to charge and collect sales tax on that item from them then.

BobC,

Thank you for that information. If an auction house is collecting the sales tax then how do we know it's actually sending it to the state to which I reside? I know that's probably a pretty stupid question but adding an extra 6-10% to the bottom line could be easily accomplished.

Now about item #3. I think it's horseshit that people with resale permits can get by without paying sales tax because it puts them at an advantage (uneven playing field of sorts) with the rest of the bidders. To me, either everyone is subjected to it or nobody should have to pay it. This is an auction, yes, it's a sale but not a "traditional" sale.