Wisconsin Assembly Bill AB1049

Wisconsin 2023-2024 Regular Session

• Introduced: 2/2/24
• Refer: 2/2/24
• Failed: 4/15/24

Caption

The sales and use tax exemption for personal farm property or household goods sold by auction on the Internet. (FE)

Impact

The bill is expected to impact retailers, auctioneers, and consumers by potentially increasing the ease of conducting auctions for personal and household goods, particularly in the context of the growing market for online auctions. By redefining what constitutes an 'auction event' and maintaining tax exemptions for internet bidding scenarios, the law acknowledges the evolution of auction practices in the digital arena. There are concerns, however, regarding the implications of such an exemption on state revenue, as it may decrease overall tax collection from auction transactions.

Summary

AB1049 seeks to amend the current sales and use tax exemption threshold for personal farm property and household goods sold by auction. The legislation clarifies that the exemption applies to five or fewer auction events held by the same auctioneer at the same location within a given year. Notably, it establishes that for auctions where bids can be placed online, the exemption remains applicable regardless of the location of the goods being auctioned as long as these events are consecutive. This modification aims to provide a clearer framework for auctioneers and participants engaging in online sales of such properties.

Contention

Some stakeholders may question the fairness of extending tax exemptions specifically for internet auction scenarios, fearing it may lead to uneven playing fields among traditional auctioneers and those using online platforms. Additionally, the potential revenue loss from tax exemptions has raised alarms among budget analysts who argue that careful consideration should be given to the net fiscal impact of these changes. Stakeholders, including auction houses and online auction platforms, have varying perspectives on how such changes will benefit their operations or conversely affect public resources.