Ohio Department of Agriculture confirms - Auctioneer licenses needed for anyone selling over $10,000

[queencityvintageltd]

Yesterday I started a thread about Ohio HB321 which requires auctioneer or auction firm licenses for anyone who auctions items on the internet.   I received confirmation this morning from the Department of Agriculture that this is true, however Gov. Dewine signed an bill that modifies HB321 slightly.  (this doesn't come up anywhere online when searching for info about auctioneer licensing).

Anyone selling items for profit, over $10,000 gross, cannot sell auction items on Ebay without an auctioneer license.  The agent specifically ignored my question about the Make Offer feature, which according to one comment by the Department of Agriculture, may also be considered auctions.  I asked again and am waiting on an answer.  Also, they have not answered whether individual employees of an auction firm must have auctioneer licenses to post auctions on ebay.

Congrats everyone, we're all crooks!

This is the text of the email I received:

Dear XXXXX,

HB 321 signed into law in June of 2022 and was effective September 13, 2022 defined online auctions and requires an auctioneer or auction firm license under Chapter 4707 of the Ohio Revised Code unless an individual meets an exemption found with in ORC 4707.02(B).  The exemption for the owner of ones’ goods not requiring a license is for those individuals who acquire property without the intent to resell the property.  If the property is acquired with the intent to resell, a license would be required or you would need to hire a licensed auctioneer or auction firm to conduct your auctions.

HB 507 – signed by the Governor on January 6, 2023, effective date April 6, 2023

• Exempts from auctioneer and auction firm licensure requirements a person who, in any calendar year, sells not more than $10,000 of personal property via an auction mediation company (for example, eBay) if: 
  • The auction mediation company provides fraud protection to the buyer; and
  • The property is the person’s own personal property, or the property is the personal property of another (sold without compensation).

“Fixed price listings” or “buy it now pricing “ does not fall within the definition of an auction, and would not require a license under ORC Chapter 4707.

[queencityvintageltd]

This is the official flyer from the Dept of Ag. 

[ebooksdiva]

What does that have to do with eBay?

[luckythewinner]

Sounds like fixed price is the way to go if you live in Ohio.

[queencityvintageltd]

If you auction anything on ebay, it applies to you.

[my-cottage-books-and-antiques]

@ebooksdiva  If you are an Ohio resident, and want to sell stuff via ebay auction (rather than Fixed price) and, possibly, even with Best Offer on Fixed Price, you will need an actual auctioneer's license (and this seems to be true even if you are auctioning your own property.)

As we have seen with sales tax, once one state decided to charge sales tax on ebay sales, most other states jumped on the bandwagon. So, even if you are NOT an Ohio resident, a similar law might be coming to your home state soon. 

[my-cottage-books-and-antiques]

@ebooksdiva  Sorry, meant to include the fact that there appears to be a $10,000 threshold here....

[ebooksdiva]

I don’t live in Ohio.
I don’t do auctions. 

[queencityvintageltd]

I'm sure the Ohio sellers would be happy for your support.  We all swing together, as they say...

[my-cottage-books-and-antiques]

@ebooksdiva You asked what it has to do with ebay. You did not ask what it has to do with you. Since you don't live in Ohio and don't do auctions, it has nothing to do with you. As it turns out, some ebay sellers DO live in Ohio, and some of those Ohio sellers DO auctions, so this would be of interest as it relates to ebay.

[axiombody]

Wouldn't Ebay be the auctioneer?

[queencityvintageltd]

For those who answer, "why not just get an auctioneers license?"....First, read over the info flyer.  Then consider the cost - $25 test fee, $200 bi-annual renewal fee, minimum $250 annual fee for a bond (the fee increases as your credit score decreases), plus at least 8hrs of continuing education annually. Background checks are also required, so only those with perfect records may be able to get licenses. 

And that's just if you have an llc or corporation.  Individuals must complete auctioneer school - 80hrs!

On top of it all, being an auctioneer or firm puts us under the purview of the Department of Agriculture, who can review sales, issue sanctions, require interviews, etc.   We are no longer subject to just the whims of Ebay and the credit card processors, but now the state as well.    For these reasons, I have to object to licensing in the strongest terms.

[fern*wood]

It sounds like the bill writer didn't think this one through very well.

[josephb555]

When someone sells their own items on eBay he is not an auctioneer, he is a salesman. When someone sells another person's item at auction and then charges a commission after the item is auctioned off he is an auctioneer.

[onlinecentral]

Elaborate on what your friend was selling and why that caught the attention of the Ohio Department of Agriculture.

Message 13: It sounds like the bill writer didn't think this one through very well.
The auctioneer school does not have the capacity to graduate the number of affected sellers.
This bill will most likely get a revision like the year 2005 bill did.