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House Bill 1271


House Bill 1271

ARCHIVE (2009)

Latest Information

 

DIGEST OF HB1271 (Updated April 29, 2009 11:09 pm - DI 84)


Retail consignment sales. Provides that if a person delivers an item with a value of at least $50 to a retail merchant for exhibition or sale on commission, the item is considered to be for sale on consignment unless the person is paid in full upon delivery. Provides that the item and the proceeds due the consignor from the sale of the item are property held in trust for the consignor by the retail merchant and are not subject to seizure or encumbrance by a creditor of the retail merchant. Permits a retail merchant to accept an item for consignment only if a written contract containing certain provisions is executed. Specifically exempts items sold at auction from the non-tax provisions of this act, and specifies that if a provision of this act conflicts with the Uniform Commercial Code (UCC), the UCC controls. Requires a retail merchant that is a consignee to collect and remit the state gross retail tax on the gross retail income received in a consignment sale. Requires the retail merchant to provide a consignor customer an invoice that shows that the state gross retail tax was paid to the consignee retail merchant with a clear notation on the invoice that the item was a consignment sale by the retail merchant on behalf of the seller to the purchaser.
Current Status:
 Law Enacted
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