A Michigan sales tax license is required for some auctions and may be obtained from the Department of Treasury. Contact the Michigan Department of Treasury at 517-636-4660, or visit their website, www.michigan.gov/taxes .  Request form 518 - Registration for Michigan Taxes.   

Estates, farms and household sales are exempt if held onsite. If the merchandise is moved by the auctioneer to another facility, sales tax must be collected and submitted to the state.  If the auctioneer brings consigned items to the location, the entire sale becomes subject to sales tax. 

If an auctioneer sells from a regular location that sale becomes subject to sales tax.  A customer attending the auction, purchasing for resale may submit their sales tax license number and  sign an exempt certificate indicating the merchandise purchased is for resale, farm use or manufacturing and be excused from paying on the purchases.

If an auctioneer is liquidating a commercial facility which already possesses a valid Michigan sales tax license, the sales tax may be reported and paid by the facility owner or the auctioneer.