You asked if auctioneers must be licensed in Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. You also wanted to know if out-of-state auctioneers holding an auction in Connecticut are required to collect sales tax and, if so, how much is collected in a year.

SUMMARY

Connecticut requires auctioneers to be licensed by the town in which the auction takes place if the auctioneer does not live in that town. New York authorizes municipalities to adopt ordinances on auctioneers.

Maine, Massachusetts, New Hampshire and Vermont require auctioneers to obtain a state license. Applicants must pass a licensing examination in Maine and Massachusetts. Applicants must pass an approved course in Massachusetts and Vermont. Applicants must post a $ 10,000 bond in Massachusetts and New Hampshire.

Rhode Island does not require auctioneers to be licensed but does impose a duty on sales made at auction.

Auctioneers holding an auction in Connecticut must collect Connecticut’s sales tax, regardless of where the auctioneer resides or holds a license. The Department of Revenue Services cannot report the amount of sales tax collected by this group.

CONNECTICUT

Anyone conducting an auction in a town in which he does not live must be licensed by that town, with certain exceptions (CGS § 21-1). The law does not apply to auctions of provisions, charcoal, wood, farm products, and secondhand household furniture or to auctions conducted by or for the state pursuant to a court order.

License applications must be written and filed at least three days before the auction. The licensing authority may revoke the license if it is “for the public interest” (CGS §21-2).

Towns cannot charge a fee to a blind auctioneer and noncommercial educational broadcast facilities (such as CPTV) are completely exempt (CGS §§ 21-5 and 21-5a).

MAINE

Maine requires auctioneers to be licensed by the state Board of Licensing of Auctioneers. Licensure applicants must prove that they know the state’s auction laws, auction ethics and practices, and laws relating to sales of used goods. The licensing board administers a licensing examination. The law allows nonresidents to be licensed if they meet Maine’s licensing standards. Nonresidents must show that they are licensed in their home state.

The law requires auctioneers, when asked by law enforcement personnel, to state whether they own the goods being auctioned. If they do not, the auctioneer must state the owner’s name and address. The law prohibits goods from being brought into the state to sell them by auction unless the auction is publicly advertised. All goods must be auctioned pursuant to a written contract with their owner. It must include: the contract date; the auctioneer’s name and license number; and terms and conditions such as property description, reserves, payment schedule, commission rate, and other charges (Me. Re. Stat. Ann. T. 32 §§ 270 to 283).

MASSACHUSETTS

Massachusetts requires auctioneers to be licensed by the state’s Office of Consumer Affairs. An “auctioneer” is anyone who, for a commission or other fee and by means of an auction or other means, negotiates the sale of property.

A license applicant must show that he has successfully completed a course of study recognized by the National Auctioneers Association and passed a written examination conducted by an independent testing service concerning (1) appropriate knowledge of technical terms; (2) an understanding of the problems likely to be encountered when conducting an auction; (3) appropriate reading comprehension, writing and spelling skills, and knowledge of basic mathematics; and (4) understanding the types of misconduct which would warrant disciplinary proceedings. Applicants must also post a $ 10,000 bond with the state to guarantee the payment of fines and judgments. Service of process on any licensed auctioneer may be made on the director of the Office of Consumer Affairs. Massachusetts may license nonresidents and, if they are licensed in another state, exempt them from the written examination. The law specifically allows nonresidents to be licensed if they “conform” to state law.

Licenses may be suspended, revoked, or denied for (1) felony conviction, (2) following a continuous and flagrant course of misrepresentations, or (3) failing to meet licensing requirements (Mass. Gen. Laws Ch. 100 §§ 1 to 13).

NEW HAMPSHIRE

New Hampshire requires auctioneers to be licensed by the state Board of Auctioneers. Applicant must submit, with their application, the recommendations of two licensed auctioneers. The application must show that the applicant can judge the value of real, personal, and mixed property. The law requires applicants to post a $ 10,000 bond conditioned on the promise that he will properly account for and deliver all money and things of value that he handles as an auctioneer. The bonds must be purchased from a firm authorized to do business in the state (N. H. Rev. Stat. §§ 311-B: 1 to 311-B: 14).

NEW YORK

New York authorizes towns to adopt ordinances about auctions (N. Y. Town Law § 136). It also (1) limits auctioneers to 2. 5% commission in all counties other than New York and Kings counties (N. Y. Gen. Bus. Law § 21) and (2) requires an auctioneer to keep records of the goods he receives to sell at auctions. The records must include information on who

owns or is responsible for the property, where the auctioneer stores it, where the auction is to be held, a description of it, and the terms and conditions of the agreement between the auctioneer and the seller (N. Y. Gen. Bus. Law § 25). New York does not have a state law requiring auctioneers to be licensed.

RHODE ISLAND

Rhode Island requires auctioneers to pay a duty on all sales made by auction, but it does not require auctioneers to be licensed. The duty is equal to . 1%. One-eighth of the duty goes to the town in which the auction takes place; the remainder goes to the state. Auctioneers must give an accounting of their sales, include dates and amounts, to the state twice each year and pay the state and town within 10 days after giving the accounting (R. I. Gen. Laws §§ 44-21-1 to 44-21-9).

VERMONT

Vermont requires auctioneers to be licensed by the state Office of Professional Regulation. Applicants must have (1) completed a course at an approved auctioneering school with course requirements consisting of at least 40 clock hours and (2) completed an apprenticeship of at least 1,000 hours of experience obtained in one calendar year that includes actively participating in at least six auctions under the supervision of a licensed auctioneer who is in good standing and has at least three years experience. The law allows someone licensed in another state to be licensed if that state has requirements that are substantially equivalent to Vermont’s (Vt. Stat. Ann. T. 26 §§ 4601 to 4609).

CONNECTICUT SALES TAX

The law requires auctioneers to collect sales tax on the amount of their sales. They are not required to collect sales tax on the value of their services (Conn. Agencies Reg. § 12-407 (2)(i)(S)-1). The Department of Revenue Services cannot report the amount of sales tax paid by auctioneers.

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