Ruling 90-17

Repossessed Property

This Ruling has been obsoleted by AN 2000(8)

It is the position of the Department of Revenue Services that the sales of repossessed tangible personal property are subject to the sales and use tax.

When a bank repossesses tangible personal property and sells said property at auction, the auctioneer must apply the sales tax to the total gross receipts for the sales of the personal property. In addition, the auctioneer's fee to the bank for selling the tangible personal property is taxable, because this service is considered to be a sales agent service pursuant to Section 12-407-(2)(i)(U) as amended by Public Act 89-251.

LEGAL DIVISION

February 5, 1990