Which Missouri auction sales and buyer's premiums did the Department say were taxable?

Plain-English summary

A Missouri auction company sold goods it bought from estates and storage units, sold consigned goods, sometimes conducted partial or complete estate liquidations, and charged a buyer's premium on winning bids. Missouri answered five sales-tax questions about those activities.

The Department said the company must collect state and local sales tax when it resells items bought from estates or storage units and when it sells consigned items. For the liquidations described in the ruling, the Department answered that it should not collect sales tax, citing the isolated-or-occasional-sale provision. It also said the buyer's premium on taxable sales of tangible goods in Missouri is part of the sale price and is taxable.

The ruling discusses whether an auctioneer discloses its principal, but its consignment response gives little detail about how that rule applies to this company's consignments. It should not be read as a complete rule for every consignment arrangement.

What this means for you

Auction companies

Separate goods the company owns, consigned goods, and the liquidations it conducts. Track the buyer's premium as part of a taxable sale price when the facts match this ruling. The source does not give a blanket exemption for every estate auction.

Accountants and sellers

Review who owns each item, whether a principal is disclosed, the nature of any liquidation, and how the premium is charged. The Department's ruling applies only to the applicant's stated activities.

Common questions

Must the company collect tax on goods bought from an estate or storage unit?

Yes. It is reselling those goods as principal, and the Department said to collect applicable state and local sales tax.

What about consigned goods?

The Department answered yes for this applicant, while citing the auctioneer-and-principal rule.

Did the ruling tax the described liquidations?

No. The Department applied the isolated-or-occasional-sale provision to the liquidations it addressed.

Is the buyer's premium taxable?

Yes, for the Missouri sales of tangible personal property described here. The Department treated the premium as part of the sale price.

Citations and references

• Section 536.021.10, RSMo; 12 CSR 10-1.020
• Section 144.020, RSMo
• 12 CSR 10-103.210
• Section 144.010.1(2), RSMo

Verbatim support

Yes. Applicant must collect and remit applicable state and local sales tax on sales of consigned items.

No. Applicant should not collect and remit applicable state and local sales tax on liquidations.

Because of these factors, the buyer's premium is part of the sales price.

Source

• Landing page: Missouri DOR Rulings Search
• Ruling: LR 8409

Original ruling text

September 24, 2026

Dear Applicant:

This is a letter ruling issued by the Director of Revenue under Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020, in response to your letter dated August 31, 2026.

The facts as presented in your letter ruling request are summarized as follows:

Applicant is an auction company that primarily conducts online auctions. Applicant has one location, which is in Missouri. Applicant conducts auctions whose merchandise comes from three sources: Estate/Household Buyouts, Storage Units, and Consigned Merchandise. Applicant will also occasionally conduct partial or complete liquidations of estates.  Applicant charges a "buyer's premium" based on the winning bid for all sales.

ISSUE 1 :

Must Applicant collect and remit state and local sales tax on sales of items purchased from an estate?

RESPONSE 1 :

Yes. Applicant must collect and remit applicable state and local sales tax on sales of items purchased from an estate.

Section 144.020, RSMo, imposes a sales tax on the retail sales of tangible personal property. 12 CSR 10-103.210 provides:

In general, an auctioneer who does not disclose the principal will be considered the seller of the tangible personal property and will be required to collect and remit sales tax on the gross receipts of the property sold. The principal is liable for collecting and remitting the tax if the auctioneer discloses the principal to the purchasers at the auction.

Applicant is selling items it purchased from an estate.  Here, the principal is disclosed and Applicant should collect tax on its sales of the items.  Since Applicant is the principal, it is required to collect and remit applicable state and local sales tax.

ISSUE 2:

Must Applicant collect and remit state and local sales tax on sales of items purchased from storage units?

RESPONSE 2:

Yes. Applicant must collect and remit applicable state and local sales tax on sales of items purchased from storage units.

See Response 1 .

ISSUE 3:

Must Applicant collect and remit state and local sales tax on sales of consigned items?

RESPONSE 3:

Yes. Applicant must collect and remit applicable state and local sales tax on sales of consigned items.

See Response 1 .   12 CSR 10-103.210 provides that the seller is responsible for collecting and remitting the tax regardless of whether or not the principal is disclosed.

ISSUE 4:

Must Applicant collect and remit state and local sales tax on  liquidations?

RESPONSE 4:

No. Applicant should not collect and remit applicable state and local sales tax on liquidations. Section 144.010.1(2), RSMo, provides:

The isolated or occasional sale of tangible personal property, service, substance, or thing, by a person not engaged in such business, does not constitute engaging in business within the meaning of sections 144.010 to 144.525 unless the total amount of the gross receipts from such sales, exclusive of receipts from the sale of tangible personal property by persons which property is sold in the course of the partial or complete liquidation of a household, farm or nonbusiness enterprise, exceeds three thousand dollars in any calendar year.

As a liquidation does not constitute engaging in business, Applicant is not required to collect and remit state and local sales tax on  liquidations.

ISSUE 5 :

Must Applicant collect and remit state and local sales tax on the "buyer's premium" for sales of tangible personal property inside the state of Missouri?

RESPONSE 5 :

Yes. Applicant must collect and remit applicable state and local sales tax on the "buyer's premium" for sales of tangible personal property inside the state of Missouri.

Section 144.020, RSMo, imposes a sales tax on the retail sales of tangible personal property.

Applicant charges a "buyer's premium" on all winning bids. The buyer's premium is intended by all parties to be part of the sales transaction. The seller chooses the services of Applicant to secure payment for the property being sold: there can be no sale without payment of the premium. Because of these factors, the buyer's premium is part of the sales price.

This letter ruling is binding upon the Department of Revenue with respect to the Applicant for three (3) years from the date of this letter and is subject only to statutory changes by the General Assembly and to changes in the interpretation of law by the courts or administrative tribunals.  If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change.  For this reason, the interpretation set forth above should be reviewed on a regular basis.  Please note that any change in or deviation from the facts as presented will render this ruling inapplicable.

Should additional information be needed, please contact Senior Counsel Kent Brown General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.

Sincerely,

Trish Vincent