Sales Tax On Estate Liquidations

MP900411753Sales tax on estate liquidations depends on the state. Each state has it’s own regulations about the collection of sales tax at estate sales.

Florida and California require an estate liquidator to collect sales tax unless you possess a valid resales tax number. In Maryland they require sales tax as well, however, if you possess a resales tax number and your purchase is under $200.00 you still pay sales tax. Then apply to the state of Maryland to have it refunded. Purchases over $200.00 with a resales number do not require sales tax collection. In New Jersey they do not collect sales tax on estate liquidations.

An estate sales company that is required to collect sales tax must keep accurate records of the taxes collected and the state usually requires them to keep a copy on file of any resales tax certificates that exempted someone from paying the sales tax. A personal property liquidation company that works in more than one state must be knowledgeable about each states sales tax requirements.