Auctioneers and Sales Tax Laws

Auctioneers are required under Mississippi Law to collect sales tax on items they sell unless the sale falls within one of the exceptions.

Exceptions are few.  Dealers with a sales tax number are not required to pay tax.  Other exceptions exist.

Due to ever changing regulations you should contact the Mississippi Sales Tax Commission for more information.

For Mississippi Laws see:

• Sales Tax Laws, Title 27, Chapter 65, Mississippi Code Annotated (27-65-1)
• Use Tax Laws, Title 27, Chapter 67, Mississippi Code Annotated (27-67-1)

See also http://www.dor.ms.gov/taxareas/sales/main.html - Mississippi Department of Revenue

Mississippi Department of Revenue Provisions

Sales of personal property (except for motor vehicles as defined above) through auctions, 
flea markets, antiques malls, or other similar establishments, are not classified as isolated, 
casual or occasional sales. 

Title 35, Part IV, Mississippi Administrative Code

Chapter 05 Auctions, Flea Markets, Antique Malls and Other Similar Establishments 
 
100 Auctions 
 
101 An Auctioneer is a person who owns tangible personal property or to whom tangible personal property has been consigned and who offers tangible personal property for sale 
at auction. 
 
102 For the purpose of an auction, gross proceeds of sales are the total amount received without any deductions for commissions. 
 
103 Auctioneers either operating from an established place of business or regularly engaged in auctions or licensed as an auctioneer with the State of Mississippi or any other state are considered to be in the business of selling tangible personal property. Sales tax is due on the gross receipts from such sales regardless of how such tangible personal property may have been acquired, or by whom it may be owned. 
 
104 Persons or entities operating from an established place of business or regularly engaged in operating Estate Sales are considered to be in the business of selling tangible personal property. Sales tax is due on the gross receipts from such Estate Sales regardless of how such tangible personal property may have been acquired, or by whom it may be owned. 
 
105 In cases where inventory items held for sale are auctioned at the closure of a business, sales taxes due from the sales of such items are reported through the sales tax account of the business and not by the auctioneer. 
 
106 An auctioneer, unless meeting the requirements for a dealer and Designated Agent, will not be responsible for collecting sales tax on motor vehicles sold through the auction. Under Miss. Code Ann. Section 27-65-201, motor vehicles sold between non-dealers are subject to a 5% casual sales tax. The county tax collector for the county, in which the motor vehicle will be registered, is responsible for collecting this tax unless a dealer is 
involved in the transaction. If a dealer is involved in the transaction, the dealer is responsible for collecting and remitting the appropriate sales tax. 
 
107 (Reserved) 
 
200 Flea Markets, Antiques Malls and Promoted Events

201 Flea Markets and Antiques Malls are businesses where nonpermanent spaces are rented to participants for the sale or exchange of secondhand articles, antiques and crafts. The participants may rent these nonpermanent spaces on a daily, weekly or monthly basis. A fee may or may not be charged to prospective buyers for admission to the area where such property is offered or displayed for sale or exchange. 
 
202 Promoted Events include, but are not limited to, community festivals, craft shows, seasonal shows, music festivals, and other similar events. These events may include multiple vendors selling tangible personal property, including food or drink. 
 
203 The owner/promoter/operator of a flea market, antique mall or promoted event is the seller and is responsible for collecting and remitting the sales tax collected by dealers, salespersons or individuals selling at such events. Any vendor who holds a retail sales tax permit should not report tax from an event under his/her number. All taxes collected from these establishments or events must be reported by the owner/promoter/operator. 
 
204 (Reserved) 
 
300 Consignment or Broker Sales 
 
301 The consignee or broker (licensed retailer or wholesaler) is liable for the sales tax on sales of tangible personal property that was consigned, delivered or entrusted to him regardless if the broker or consignee acquires possession or if the consignor retains title or not. 
 
302 (Reserved) 
 
35.IV.13.05 revised effective August 15, 2008




Mississippi Department of Revenue

NOTICE TO FARMERS AND DEALERS OF FARM TRACTORS AND FARM IMPLEMENTS 
 
Senate Bill 2606, as passed during the 2009 Regular Session of the Mississippi Legislature amended Miss. Code Ann. Section 
27-65-17 to provide for a reduced 1½% rate of sales tax on sales of farm tractors, farm implements and parts and labor used to 
maintain and/or repair such farm tractors and farm implements when sold to farmers for agricultural purposes. The new 1½% 
rate of sales tax on farm tractors, implements and parts and labor become effective July 1, 2009. 
 
A farm tractor is self-propelled equipment which performs no farm function other than to move, draw or furnish power to other 
implements which may be attached. All parts and labor purchased by a farmer for the maintenance and/or repair of farm 
tractors are subject to the reduced 1½% rate of sales tax. Tractors purchased for non-agricultural purposes such as earth 
moving activities are subject to the full 7% rate of sales tax. 
 
A farm implement is a complete unit that performs a specialized mechanical function and is identifiable as a specific piece of 
equipment that is ordinarily and customarily used on a farm. All parts and labor purchased by a farmer for the maintenance 
and/or repair of farm implements are subject to the reduced 1½% rate of sales tax. 
 
Implements that qualify for the 1½% rate of sales tax include, but are not limited to: 
 
 Bush hogs 
 Combines 
 Combine headers 
 Cotton pickers 
 Above ground irrigation equipment including center pivot systems, pumps, motors and pipe 
 Fertilizer spreaders 
 Cotton trailers – used only in the field (not tagged for highway use) 
 Self propelled sprayers 
 Fish aerators 
 Dozers – must be used for agricultural purposes only 
 Track hoes – must be used for agricultural purposes only 
Items that don’t qualify for the reduced 1½% rate include, but are not limited to: 
 
 Utility vehicles and four wheelers unless equipped with a power takeoff used to power an attached implement 
 Trucks and other vehicles required to be tagged for road use 
 Lawn mowers/finishing mowers – unless used by sod farmers 
 Water well drilling for irrigation systems and water supply systems (3½% contractor’s tax when greater than $10,000) 
 Any structures deemed to be real property such as grain bins or building structures (3½% contractor’s tax when 
 greater than $10,000) 
 
Farmers purchasing farm tractors, farm implements and parts and labor for the maintenance and/or repair of farm tractors and 
farm implements are required to complete and have notarized a Farmer’s Affidavit. The Farmer’s Affidavit form is available 
online at www.mstc.state.ms.us. The farmer should supply copies of their completed and notarized Farmer’s Affidavit to each 
vendor where qualified items are purchased at the 1½% rate of sales tax. The Farmer’s Affidavit expires December 31 of each 
year, and a new Farmer’s Affidavit should be completed each following year and provided to each vendor. 
 
Items sold at auction are considered retail sales and subject to sales tax at the same rates that apply to other retail sales. 
Auction companies selling farm tractors, implements and parts at the reduced 1½% rate of sales tax are required to obtain a 
copy of a notarized Farmer’s Affidavit from the customer to substantiate charging the reduced rate.