Update to Taxation of Sales by Auctioneers

P.A. 102-0634 removed auctioneers from the definition of marketplace facilitator as of August 27, 2021 (however, internet auction listing services remain marketplace facilitators under this legislation). Auctioneers remain subject to sales tax, but auctioneers now incur Retailers’ Occupation Tax at the rate in effect at the location where the selling occurs (origin rate) and must follow the disclosed/undisclosed principle rules set out in 86 Ill. Adm. Code 130.1915. This is the same practice auctioneers were to use prior to January 1, 2021. I’ve attached the Department’s recent bulletin on the changes for auctioneers and a copy of 130.1915. No credit or refund would be available.

The only difference in the taxation of sales by auctioneers occurred from January 1, 2021 through August 26, 2021 when they were to act as marketplace facilitators and remit sales tax according to the marketplace facilitator rules. That Public Act was effective August 27, 2021 and had no impact on the status of auctioneers from January 1, 2021 through August 26, 2021. During that time, auctioneers were required to collect and remit tax in accordance with the marketplace facilitator rules. But, as of August 27, 2021, auctioneers simply reverted back to their prior practices of collecting and remitting sales tax that were in effect before January 1, 2021. Therefore, no overpayments of sales tax would have occurred based on auctioneers acting as marketplace facilitators during that time and no refunds would be owed.

Auctioneers have always been and continue to be subject to sales tax in Illinois (except for sales made when acting on behalf of a disclosed principal pursuant to 130.1915(a)(2)).

Alexis Overstreet
Associate Counsel
Legal Services Office - Sales & Excise Tax Division Illinois Department of Revenue
101 West Jefferson Street
Springfield, Illinois 62794

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