DRS: Ruling 90-17, Repossessed Property

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

 

This Ruling has been obsoleted by AN 2000(8)

Ruling 90-17

Repossessed Property


It is the position of the Department of Revenue Services that the sales of repossessed tangible personal property are subject to the sales and use tax.

When a bank repossesses tangible personal property and sells said property at auction, the auctioneer must apply the sales tax to the total gross receipts for the sales of the personal property. In addition, the auctioneer's fee to the bank for selling the tangible personal property is taxable, because this service is considered to be a sales agent service pursuant to Section 12-407-(2)(i)(U) as amended by Public Act 89-251.

LEGAL DIVISION

February 5, 1990