• Illinois auctioneers generally must collect sales tax.sign image by petar Ishmeriev from Fotolia.com
  
  The Illinois Division of Professional Regulation (IDPR) enforces sales tax laws for public auctioneers. This is covered under the Auction License Act. Public auctioneers must pay Illinois sales taxes under certain circumstances. Public auctioneers must collect the sales taxes at the auction and remit that money to the Illinois Department of Revenue in most circumstances.
  
  

License

• All public auctioneers must obtain a license. The auctioneer's license acts as a way to keep track of the individual or organization and make sure sales tax returns are filed and the appropriate amount of sales tax is paid. The IDPR issues licenses to individuals who work alone or with an auction firm. The license applicant must be at least 18 years old, have obtained a high school diploma or general education development (GED) degree, pass an auctioneer examination, pay the necessary fees and have a sponsor card.
  
  

Sales Tax

• Illinois charges a state sales tax on the sale of "tangible personal property." The Illinois sales tax rate differs depending on the type of item sold. The general rate is 6.25 percent. Qualifying medical appliances, food and drugs are taxed at a rate of 1 percent. In addition, local cities and counties in Illinois charge additional sales taxes. Auctioneers, like other businesses that sell tangible personal property, must collect these sales taxes on behalf of the government, file tax returns with the Department of Revenue and remit the appropriate amount of sales tax revenue unless the seller meets certain requirements.
  
  

Exceptions

• In general, if the buying public knows who the seller is, the auctioneer does not need to charge sales tax. However, if the seller is a retailer subject to taxation by the Illinois Department of Revenue, then the auctioneer must collect the sales tax. In addition, the auctioneer must collect the sales tax when the seller is anonymous or when the auctioneer owns the items.
  
  

Warning

• Since the laws can be complex, auctioneers would be well advised to contact a qualified attorney licensed to practice in Illinois or a tax professional to find out what obligations, if any, they may have with regard to Illinois sales tax laws for public auctioneers.