Sales of personal items (not used in a trade or business) between individuals may be exempt as an isolated or occasional sale. For more information, see Isolated and Occasional Sales.

Retailers must charge tax on sales of new and used taxable items. When a retailer acts as a broker (selling property for an individual and receiving a fee or commission for doing so), sales tax does not apply if all of the following conditions are met:

• The property is not business equipment.
• The buyer and owner of the property directly exchange money and (if applicable) title for the sale. (The money does not pass through any of the broker’s accounts.)
• The broker does not take title to the property, does not carry insurance on the property, and does not have control over the property, except for leasing or storage arrangements.
• The broker’s only function is to advertise the property for sale, obtain offers to purchase, and inform the owner of potential buyers. The owner must have rights to accept or reject any offer.

Examples

1. A boat marina sells a boat on behalf of an individual. The marina advertises the boat for sale and obtains purchase offers. The marina informs the individual, who can accept or reject the offers. Title to the boat passes directly from the individual to the buyer. Payment is made directly to the individual. The marina receives a commission from the seller. The sale is exempt from tax.
2. A boat marina sells a boat on behalf of an individual. The boat owner has no involvement in the sale. Payment for the boat is deposited in the marina’s account. The sale is subject to tax.

For more information, see Isolated and Occasional Sales.

The exchange of taxable goods or services between two or more parties is considered bartering. Sales tax is due on the value of each item or service bartered.

Racing fuel sold for use in an off-road vehicle such as snowmobiles and other ATVs is taxable.

Towing a boat is not taxable. For more information, see Towing, Cleaning, and Rustproofing Services.

The only taxable food sold through vending machines and honor boxes is prepared food, soft drinks, candy, and dietary supplements. Previously, all food sold through vending machines or honor boxes were taxable.

For more information, see Vending Machines and Other Coin-Operated Devices.