Frequently Asked Questions

Sales Tax Collection Procedures

How is sales tax calculated and collected?

Blackmon Auctions calculates and collects sales tax on items sold from the U.S. based on the state and local tax rates in effect at the location of the items purchased.

What does this mean for me as a buyer?
  • Dealers and Resellers – Blackmon Auctions will not collect sales tax if: (1) you are a dealer or reseller, and (2) you have provided Blackmon Auctions with a current valid sales tax resale exemption certificate from the state where the equipment was located at the time you purchased it or if you have other valid state reciprocity exemption paperwork.
  • International Buyers – Blackmon Auctions will not collect sales tax if you are an exporter or buyer based outside of the country where the purchased item is located, and you provide a preliminary Bill of Lading (“BOL”) at the time of pick-up showing that the item is destined to the port for export. You will then be required to provide proper documentation of delivery of the item, such as a completed BOL to the port or border, and export documentation, like an Ocean BOL (or other documentation supporting a continuous process of export). For example, exporting to Mexico would require a Pedimento.
    • This documentation is required within two (2) business days of delivery of the item to its final international destination, or you will be invoiced for sales tax due on the transaction based on the location of the purchased item.
    • If proper documentation is not received in a timely manner for all purchases, you will be invoiced for the sales tax based on the location that the item(s) were sold from, and Blackmon Auctions reserves the right to charge sales tax at the time of sale on future purchases.
  • Non-Exempt Buyers Shipping Out-of-State with a Common Carrier – Blackmon Auctions will calculate and collect sales tax based on the tax rates in effect at the location of the item you purchased if you are a non-exempt buyer transporting your items across state lines with a common carrier transportation company.
    • You have 10 business days to notify Blackmon Auctions that you have transported the equipment to a state other than the one from where it was purchased and to request a sales tax adjustment. This is done by submitting a Bill of Lading, using the process described below, or other valid proof of transportation.
    • Note that in cases where the destination has higher sales tax rates, Blackmon Auctions is required to collect the additional sales tax.
How do I obtain a sales tax refund or pay for an increase adjustment?

If you have an exemption certificate that was not submitted at the time of sale:

  • You can request a sales tax refund or adjustment:
    • Submit a valid sales tax exemption certificate to mshelle@blackmonauctions.com or fax to 501-664-4538.
  • You have 10 business days from your date of purchase to submit a valid exemption certificate in order for Blackmon Auctions to process a refund. After 10 business days, you will need to submit any refund request directly to the state for which the original sales tax was collected and remitted by Blackmon Auctions.

If you transported your purchased item across state lines with a common carrier transportation company:

  • You can request a sales tax refund or adjustment:
    • Submit a Bill of Lading to mshelle@blackmonauctions.com or fax to 501-664-4538.
  • You have 10 business days from your date of purchase to submit a bill of lading in order for Blackmon Auctions to process a refund or an adjustment. After 10 business days, you will need to submit any refund request directly to the state for which the original sales tax was collected and remitted by Blackmon Auctions.
  • If your items are being shipped to a destination with a higher sales tax rate, Blackmon Auctions will issue a new invoice to you for those additional taxes.
How long will it take to receive my refund or adjustment from Blackmon Auctions?

Blackmon Auctions will process your sales tax refund or adjustment within 15 business days of receiving your request along with complete and valid documentation.

LOCATIONS

Arkansas Auction Complex
Blackmon Auctions
425 Blackmon Road
Lonoke, Arkansas 72086
FAX 501-676-0218

Oklahoma Auction Complex
Blackmon Auctions
2801 South 32nd Street
Muskogee, Oklahoma 74401