When a company says they are licensed, it typically means that the have a Federal Tax ID Number or EIN. Many “companies” say they are licensed which may only mean that they have state or federal tax ID number. Further, some estate sale companies do not even collect sales tax, specifically known in the State of Arizona as a Transaction Privilege Tax for the sale or transfer of ownership of goods, merchandise or services. Although the State of Arizona does not have a specific, statewide mandate for licensing of Auctioneers, Auction Houses, Estate Sale Companies, Tag Sale Coordinators, Estate Liquidators or Personal Property Liquidators, there are specific Arizona State Statues and Local Statutes that dictate how a transfer of goods or sale of merchandise must be conducted. These statutes protect the buyer and seller. As such, Copper State Auctions conducts all sales transactions and transfer of goods in accordance with the United States Uniform Commercial Code, also know as UCC, and conducts all of its public sales according to UCC sections § 2.238 and § 2-326. Although the UCC provides protection for buyer and seller, it is not all encompassing. This is where our membership with the National Auctioneers Association binds us by a code of ethics to conduct business in a transparent and ethical manner.
Copper State Auctions and its Auctioneers are licensed in every city in which an auction is held and conducted. We have undergone the lengthy and thorough process of licensing, background checks, fingerprinting, paid the appropriate fees and hold multiple Auctioneer's, Auction House, Secondhand Dealer and Transient Dealer licenses, including federal and state licensing, as mentioned above. In addition, we are a Limited Liability Company listed in good standing with the Arizona State Corporation Commission. Further, Copper State Auctions will not sell any live animal, hazardous material, inappropriate or unlawful item. We also coordinate with the Arizona Game and Fish Department to ensure that endangered or illegal animal parts are sold or transferred at our sales.
Copper State Auctions collects state, county and local city taxes on all purchases. The Arizona State and Maricopa County tax rate on all purchases is 6.8%. Additional sales tax varies depending on the city or municipality in which the auction is held. Typically, the city tax rates vary from 1.2% to 3.9%. Further, we charge a 8% Buyers Premium on all purchases; as specified in tax law, there is not state or local tax collected on the Buyers Premium and is tax exempt as it is considered a service. The 8% Buyers Premium is calculated on the gross total sale of goods purchased, before the addition and calculation of taxes.
In addition, as required by statute, we coordinate with local law enforcement agencies regarding the origin and background of stolen property in respect to the sale of all goods offered at our auctions.