Auctioneers licensed under Title 62, Chapter 19 are not marketplace facilitators for sales and use tax purposes.
Please note, however, that auctioneers remain responsible for collecting sales tax when selling tangible personal property on behalf of an unknown person (referred to in Tennessee law as an “undisclosed principal”). For example, if an auctioneer is selling a boat and the customer does not know who actually owns the boat, the auctioneer would be selling the boat on behalf of an unknown person and would be responsible for collecting sales tax.
When an auctioneer sells tangible personal property on behalf of a known person (a “disclosed principal”) then the auctioneer is not responsible for collecting sales tax on the sale of the property.
Reference: Public Chapter 783 (2022). Tenn. Code Ann. § 67-6-102. Tenn. Comp. R. & Regs. 1320-05-01-.01.
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