Rhode Island Law on Auctioneer’s Duty to State on Auction Sales

Rhode Island Statutes
Title 44. Taxation
Chapter 44-21. Duty on Auction Sales

Chapter 44-21. Duty on Auction Sales [Combined]

•  § 44-21-1. Sales subject to duty
•  § 44-21-2. Duty imposed - Apportionment between state and city or town
•  § 44-21-3. Amount on which duty based - Retention and payment by auctioneer
•  § 44-21-4. Bidding on part of property to be sold
•  § 44-21-5. Purchase by auctioneer or original owner
•  § 44-21-6. Accounts rendered by auctioneers
•  § 44-21-7. Oath to auctioneer's account
•  § 44-21-8. Payments to general and city or town treasurers
•  § 44-21-9. Forfeiture for neglect of duty by auctioneer

§ 44-21-1. Sales subject to duty

All sales by auction are made by an auctioneer and are subject to a duty to the state, except the following:
(1)    Sales made pursuant to any judgment, sentence, decree, order, or rule of any court or judicial officer of the state or of any court of the United States having jurisdiction within the state;
(2)    Sales made by virtue of any writ, execution, warrant of distress, or order of law, or the property of any city or town, sales of property held by executors, administrators, or guardians of estates lying or being within the state;
(3)    Sales of pews, or choice of pews in houses of public worship; and
(4)    Sales of goods exhibited at any fair held by the Rhode Island society for the encouragement of domestic industry, or by the Aquidneck agricultural society, and which may be sold by auction during the continuance of the fair.

Cite as R.I. Gen. Laws § 44-21-1

§ 44-21-2. Duty imposed - Apportionment between state and city or town

The duty upon all property sold by auction in the state and which is liable to duty is one-tenth of one percent (.1%), and inures one-eighth ( 1/8) part of the duty to the use of the city or town in which sales are made and the remainder of the duty to the use of the state.

Cite as R.I. Gen. Laws § 44-21-2

§ 44-21-3. Amount on which duty based - Retention and payment by auctioneer

The duties listed in § 44-21-2 are calculated on the sums for which the exposed property to sale is struck off, and is retained by the officer selling the property out of the amount of the sales and paid over to the proper officer.

Cite as R.I. Gen. Laws § 44-21-3

§ 44-21-4. Bidding on part of property to be sold

Whenever any sale or bidding is made at public auction in regard to any real estate or in regard to any goods, wares, merchandise or other personal property, upon any less quantity than the whole, for the purpose of fixing the price of any larger quantity or of the whole, the whole amount of the property sold, transferred, contracted for or negotiated by the terms and conditions of the auction is subject to a duty as if the whole has been set up and sold by auction.

Cite as R.I. Gen. Laws § 44-21-4

§ 44-21-5. Purchase by auctioneer or original owner

Whenever any auction has actually begun and the final purchase or bidding has been made by the owner of the property, by the auctioneer or by any person employed by either of them, the duty is paid as if the bidding has been made by any other person.

Cite as R.I. Gen. Laws § 44-21-5

§ 44-21-6. Accounts rendered by auctioneers

(a)    Every auctioneer shall by January 31, and July 31, as of December 31 and June 30, render a just and true account, in writing, subscribed by the auctioneer, to the general treasurer of all property subject to duty sold by the auctioneer, the amount of each day's sale and the date of the sale.
(b)    The treasury, at reasonable times and upon reasonable notice, may examine the records of any licensee to determine whether the person has complied with the account.
(c)    The treasury may file a request with the director of business regulations to deny, suspend, or revoke the license of any licensee for not rendering the account.

Cite as R.I. Gen. Laws § 44-21-6

§ 44-21-7. Oath to auctioneer's account

The auctioneer shall take, before some magistrate authorized to administer oaths, the following oath, to be endorsed and certified on the account so rendered: "I, [naming the person] do solemnly swear (or, affirm) that this account, to which I have subscribed my name, contains a just and true account of all property sold or struck off by me, subject to duty by law within the time mentioned in the account, and of the days on which the properties were sold and that I have attended the sales personally, and have examined the entries of the sales in the book kept by me for that purpose, and know this account to be in all respects correct"; to which oath the auctioneer subscribes his or her name.

Cite as R.I. Gen. Laws § 44-21-7

§ 44-21-8. Payments to general and city or town treasurers

Every auctioneer shall, within ten (10) days after rendering the account and taking the oath under § 44-21-7, pay the amount of duty upon the account of sales to the general treasurer for the use of the state, and the amount of duty due the city or town, to the city or town treasurer; and in case no sales on which duties are payable have been made, the auctioneer shall make an affidavit of this fact at the time and in the manner directed by this chapter, and transmit the affidavit to the general treasurer.

Cite as R.I. Gen. Laws § 44-21-8

§ 44-21-9. Forfeiture for neglect of duty by auctioneer

Every auctioneer who fails to render his or her account or affidavit to the general treasurer, or fails to pay the duty due the state or city or town at the time and in the manner provided:
(1)    May be required to pay to the state and/or city or town interest at the annual rate of twelve percent (12%) from the date the duty should have been paid; and/or
(2)    Shall forfeit for every neglect five hundred dollars ($500), to be sued for by the general treasurer to the use of the state, unless the neglect is not paying the duty due the city or town, and then by the city or town treasurer to the use of the city or town.

Cite as R.I. Gen. Laws § 44-21-9