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Are there special requirements for performing an auction?

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There are no special state licenses required to perform silent auctions.  However, it is recommended to contact the local town officials since most localities require registration.

If auctioning precious metals and stones, a license is not required to make purchases from a wholesaler and/or retailer for the purpose of resale.  However, purchases made from a personal owner requires a license.  Chapter 414 (Purchasers of Precious Metals and Stones), Secs 21-101 to 21-110  of the Connecticut General Statutes governs licensing.

Sec. 21-100. License required. Fee. Record of transactions. (a) No person may engage in or carry on the business of purchasing gold or gold-plated ware, silver or silver-plated ware, platinum ware, watches, jewelry, precious stones or coins unless such person is licensed by the chief of police or, if there is no chief of police, the first selectman of the municipality in which such person intends to carry on such business; except that the provisions of this subsection shall not apply to the purchase of such items from a wholesaler by a manufacturer or retail seller whose primary place of business is located in this state. Such person shall pay an annual fee of ten dollars for such license. The license may be revocable for cause, which shall include, but not be limited to, failure to comply with any requirements for licensure specified by the licensing authority at the time of issuance. A chief of police or first selectman shall refuse to issue a license under this subsection to a person who has been convicted of a felony. A chief of police or first selectman may require any applicant for a license to submit to state and national criminal history records checks. If the chief of police or first selectman requires such criminal history records checks, such checks shall be conducted in accordance with section 29-17a. For the purposes of this subsection "wholesaler" means a person in the business of selling tangible personal property to be resold at retail or raw materials to be manufactured into suitable forms for use by consumers.

      (b) Each such licensed person shall keep a record in which he shall note at the time of each transaction a description of the goods purchased and the price paid for them, the name and address of the person selling the goods and the date and hour any such goods were received. Each such licensed person shall demand positive identification from the person selling the article and the type or form of identification received shall be noted in the record. Any state police officer or municipal police officer shall have access to the record required to be kept under this section and may inspect the place where the business is carried on as well as any goods purchased or received.

      (c) No such licensed person may purchase any goods from a minor unless such minor is accompanied by a parent or guardian. Each such licensed person may only pay for goods received by check, draft or money order and no cash shall be transferred to either party in the course of a transaction subject to the provisions of this section.

      (d) At the time of making any purchase each licensed person shall deliver to the person selling goods a receipt containing the information required to be recorded in subsection (b) of this section, the amount paid for any goods sold and the name and address of the purchaser.

      (e) Upon request of the licensing authority each such licensed person shall make a weekly sworn statement, describing the goods received and setting forth the name and address of each person from whom goods were purchased, to the chief of police or first selectman of each municipality in which he transacted business that week. Such sworn statement shall not be deemed public records for the purposes of the Freedom of Information Act, as defined in section 1-200.

      (f) Any person who violates any provision of this section shall be fined not more than one thousand dollars.

According to the Connecticut Department of Revenue Services, items sold through an auction are subject to sales tax.  Businesses are required to register by filing form REG-1 (online, mail).  Additional information is available for automobile auctions.  Contact the agency: 1-800-382-9463 (Connecticut Only), (860) 297-5962 or drs@po.state.ct.us  Visit: www.ct.gov/drs

According to the Connecticut General Statute, Section 14-65, automobile auctions require an auction permit from the Connecticut Department of Motor Vehicles.  Connecticut requires auctioneers to be licensed by the town in which the auction takes place if the auctioneer does not live in that town.  Contact the agency:  860-263-5700 (Hartford and outside of CT), 800-842-8222 or mail@ct.gov  Visit: www.ct.gov/dmv

Contact the Connecticut Licensing Info Center (CT-CLIC.com) to learn about further registration considerations or if you require additional assistance: 1-800-392-2122 or Contact form .




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