Auctioneer not a dealer: facilitation of pawned-goods sale did not amount to taxable transfer of property.

An auctioneer conducting a public sale of unredeemed pledged articles under the pawnbrokers' regulatory procedure was not treated as a dealer for sales tax purposes where he merely facilitated the auction and did not himself transfer property in the goods. The sales tax definition required carrying on the business of buying, selling, supplying or distributing goods, and a sale required transfer of property for consideration. Because the pawnbroker retained possession and delivered the goods to the purchaser, while payment was made to the auctioneer, the transaction was not regarded as a sale by the auctioneer. The sales were therefore not liable to sales tax in his hands.

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Issues: Whether an auctioneer conducting sale of unredeemed pledged articles under the pawnbrokers' regulatory procedure was a dealer liable to sales tax under the sales tax law, and whether the transaction amounted to a sale by transfer of property in the goods.

Analysis: The relevant sales tax definition required a person carrying on the business of buying, selling, supplying or distributing goods, and a sale required transfer of property in goods for consideration. The auction procedure under the pawnbrokers' rules required public auction and publicity, but did not require the auctioneer to take possession of the pledged goods from the pawnbroker. The conditions of sale and the bill of sale showed that payment was made to the auctioneer while delivery was taken from the pawnbroker. On the facts found, the auctioneer merely brought the parties together and facilitated a fair public sale, while the pawnbroker retained possession and ultimately delivered the goods to the purchaser.

Conclusion: The auctioneer was not a dealer transferring property in the goods to the highest bidder, and the sales in question were not liable to sales tax in his hands.

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