eBay Drop-off Store: U.S. State Licensing Issues

An auctioneer is not required to hold a real estate license according to Chapter 29, Title 24 of the Delaware Code. If the brick and mortar store is in Delaware, then the center would need a Delaware business license."

Reading the licensing law at this website, it is open for interpretation, but clearly could be construed based on being paid a fee or commission, that someone selling for another at online auction, particularly if their business uses the word Auction in their name, could be required to obtain an auctioneer’s license. I should point out the Penalty Fee for Practicing as an Auctioneer Prior to Licensure (In addition to the license fee) $250.

City and County of Honolulu
Customer Service
P.O. Box 30310
Honolulu, Hawaii 96820
(808)733-2540

Go here to read the rules announced in 2004: http://www.idfpr.com/dpr/re/NEWS/IALSReg.asp

Thanks,
Deborah Widemon, Board Director
Indiana Auctioneer Commission
Phone - (317) 234-3040 Fax - (317) 233-4236

8. (TEXT EFFECTIVE UNTIL 5/15/07) Contracted Internet services. This chapter does not apply to an individual who takes possession of goods pursuant to a contract for the exclusive purpose of selling those goods over the Internet, unless otherwise licensed under this chapter. The May 15, 2007 Sunset date has been removed (bill passed in Maine legislature last week of April, 2007) and will no longer be part of this section.

Department of Assessments and Taxation
(410) 230-1184

Labor License & Regulation
(410) 230-6271

Sales Tax Bureau
Phone: 573-751-2836

Nebraska Real Estate Commission
Les Tyrrell, Director
P.O. 94667
Lincoln, NE 68509-4667
Phone: 402-471-2004
www.nrec.state.ne.us

7-9-66. DEDUCTION--GROSS RECEIPTS TAX--COMMISSIONS.--

A. Receipts derived from commissions on sales of tangible personal property which are not subject to the gross receipts tax may be deducted from gross receipts.

B. Receipts of the owner of a dealer store derived from commissions received for performing the service of selling from the owner's dealer store a principal's tangible personal property may be deducted from gross receipts.

C. As used in this section, "dealer store" means a merchandise facility open to the public that is owned and operated by a person who contracts with a principal to act as an agent for the sale from that facility of merchandise owned by the principal.

(Laws 1999, Chapter 169, Section 1)

3.2.225.11 - AUCTIONEERS
The receipts of an auctioneer selling property, on a commission or a fee basis, are subject to the gross receipts tax to the extent that the deduction provided by Section 7‚Äë9‚Äë66 NMSA 1978 does not apply. The receipts of a person selling property through an auctioneer who sells property on a commission or fee basis are subject to the gross receipts tax. However, the person's receipts from such a sale are exempted from the gross receipts tax if the sale is isolated or occasional and the other is neither regularly engaged nor holding out as engaged in the business of selling or leasing the same or similar property.

[3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.225.11 NMAC – Rn, 3 NMAC 2.66.1.11 & A, 6/14/01]

If not, are they required to obtain a pawn shop license? Can not answer this question, this agency does not oversee the pawnbrokers law. The link for the law is http://www.ncleg.net/EnactedLegislation/
Statutes/HTML/ByChapter/Chapter_91A.html

and/or is there legislation pending in your state which will require licensure? There is no legislation pending that I am aware of that will require an auctioneers license or an auction firm license for the types of sales that you described. As far as pending legislation for the requirement of a pawnbrokers license, again this agency does not oversee the pawnbrokers law. At the following link you can search and track any pending legislation in this State: http://www.ncleg.net/homePage.pl  

"Anyone who sells or offers to sell real property located in South Dakota on behalf of another with the expectation of receiving a commission or other compensation must hold a South Dakota broker license, broker associate license or auctioneer license issued by the South Dakota Real Estate Commission. Fees paid as advertising are exempt from real estate licensure in South Dakota; however, those fees may fall under business tax assessments."

Auctions and Auctioneers - Exempts from requirement of auctioneer license fixed price or timed listings sales that allow bidding on Internet Web site but do not constitute simulcast of live auction. - Amends TCA Section 62-19-103.

While it was clear a company like eBay operating out of another state was not required to be licensed, the sticking point seems to be if a business is located in Virginia and is "targeting" Virginia citizens for its business.

http://www.dol.wa.gov/business/
auctioneers/aucfaq.html

The key question seems to relate to being "paid" for your services. If you are, even if you are doing non-profit live auctions, you must be licensed. It is conceivable this law could be applied to drop off centers that sell at online auction. That is merely conjecture on my part.

No person may act as an auctioneer or use the title "auctioneer", "registered auctioneer", "certified auctioneer", "licensed auctioneer" or any similar title unless the person is registered as an auctioneer under s. 480.08, Wis. Stats.

For more Wisconsin auction law: http://drl.wi.gov/prof/auct/def.htm

Secretary of State's Office
The Capitol Building; Room B-10
200 West 24th Street
Cheyenne, WY 82002-0020
Phone: 307-777-5407
Fax: 307-777-7640
E-mail: rules@state.wy.us

Wyoming Real Estate Commission
2020 Carey Avenue, Suite 702
Cheyenne, Wyoming 82002-0180
Phone: 307-777-7141