Consignment Sales (Publication 114)
Broker Sales

I arrange sales for other people, but my sales agreements don’t fit the two conditions described in Consignment Sales. Are my sales taxable?

You may qualify as a broker if you do not transfer ownership of an item to the buyer without first getting permission from the owner, or if the owner maintains control of the item prior to the sale. A broker generally will not owe sales tax for the transaction. Instead, the owner of the property would be the seller and is responsible for tax on the sale. Generally, as a broker, you need a permit if you make sales on your own behalf. For more information on retailer and broker sales, please see Regulation 1569, Consignees and Lienors of Tangible Personal Property for Sale, or call our Customer Service Center at 1­-800­-400­-7115 (TTY:711). For information on special use tax rules that apply to vessel and aircraft brokers, see our Tax Guide for Purchasers of Vehicles, Vessels, & Aircraft.