Page 137 - Indian and Himalayan Art, March 15, 2017 Sotheby's NYC
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SELLING AT AUCTION                             accepted by the Internal Revenue Service,       Client Arranged Shipping Property
                                               tax and estate planning professionals,          collected from Sotheby’s New York
If you have property you wish to sell,         and insurance rms. In the event that            premises by a common carrier hired by the
Sotheby’s team of specialists and client       a sale is considered, we are pleased to         purchaser for delivery at an address outside
services representatives will assist you       provide auction estimates, sales proposals      of New York is not subject to New York Sales
through the entire process. Simply contact     and marketing plans. When sales are             Tax, but if the property is delivered into
the appropriate specialist (specialist         underway, the group works closely with          any state in which Sotheby’s is registered,
departments are listed in the back of this     the appropriate specialist departments          Sotheby’s is required by law to collect and
catalogue), General Inquiries Department       to ensure that clients’ needs are met           remit the appropriate sales tax in e ect in
or a Sotheby’s regional o ce representative    promptly and e ciently.                         the state where the property is delivered.
for suggestions on how best to arrange for                                                     New York State recognizes shippers
evaluation of your property.                   Financial Services Sotheby’s o ers a            such as the United States Postal Service,
                                               wide range of nancial services including        United Parcel Service, FedEx, or the like as
Property Evaluation There are three            advances on consignments, as well as            “common carriers”. If a purchaser hires a
general ways evaluation of property can be     loans secured by art collections not            shipper other than a common carrier to pick
conducted:                                     intended for sale.                              up property, Sotheby’s will collect New York
                                                                                               sales tax at a rate of 8.875% regardless of
(1) In our galleries                           Museum Services Tailored to meet the            the ultimate destination of the goods. If a
You may bring your property directly to our    unique needs of museums and nonpro ts           purchaser utilizes a freight-forwarder who is
galleries where our specialists will give you  in the marketplace, Museum Services             registered with the Transportation Security
auction estimates and advice. There is no      o ers personal, professional assistance         Administration (“TSA”) to deliver property
charge for this service, but we request that   and advice in areas including appraisals,       outside of the United States, no sales tax
you telephone ahead for an appointment.        deaccessions, acquisitions and special          would be due on this transaction.
Inspection hours are 9:30 am to 5 pm,          events.
Monday through Friday.                                                                         Where Sotheby’s is Not Required
                                               Corporate Art Services Devoted                  to Collect Sales Tax Sotheby’s is not
(2) By photograph                              to servicing corporations, Sotheby’s            required to collect sales tax on property
If your property is not portable, or if you    Corporate Art Services Department               delivered to states other than those listed
are not able to visit our galleries, you may   can prepare appraisal reports, advise           above. If the property is delivered to a
bring in or send a clear photograph of         on acquisitions and deaccessions,               state where Sotheby’s is not required to
each item. If you have a large collection, a   manage all aspects of consignment,              collect sales tax, it is the responsibility of
representative selection of photographs        assist in developing arts-management            the purchaser to self-assess any sales or
will do. Please be sure to include the         strategies and create events catering to a      use tax and remit it to taxing authorities in
dimensions, artist’s signature or maker’s      corporation’s needs.                            that state.
mark, medium, physical condition and any
other relevant information. Our specialists    INFORMATION ON SALES                            Sotheby’s is not required to collect sales
will provide a free preliminary auction        AND USE TAX RELATED TO                          tax for property delivered to the purchaser
estimate subject to a nal estimate upon        PURCHASES AT AUCTION                            outside of the United States.

 rst-hand inspection.                          To better assist our clients, we have           Restoration and Other Services
                                               prepared the following information on           Regardless of where the property is
(3) In your home                               Sales and Use Tax related to property           subsequently transported, if any framing or
Evaluations of property can also be made       purchased at auction.                           restoration services are performed on the
in your home. The fees for such visits                                                         property in New York, it is considered to be
are based on the scope and diversity of        Why Sotheby’s Collects Sales Tax                a delivery of the property to the purchaser
property, with travel expenses additional.     Virtually all State Sales Tax Laws require      in New York, and Sotheby’s will be required
These fees may be rebated if you consign       a corporation to register with the State’s      to collect the 8.875% New York sales tax.
your property for sale at Sotheby’s. If there  Tax Authorities and collect and remit
is considerable property in question, we       sales tax if the corporation maintains a        Certain Exemptions Most states that
can arrange for an informal “walkthrough.”     presence within the state, such as o ces.       impose sales taxes allow for speci ed
                                               In the states that impose sales tax, Tax        exemptions to the tax. For example, a
Once your property has been evaluated,         Laws require an auction house, with a           registered re-seller such as a registered art
Sotheby’s representatives can then help        presence in the state, to register as a sales   dealer may purchase without incurring a
you determine how to proceed should you        tax collector, and remit sales tax collected    tax liability, and Sotheby’s is not required
wish to continue with the auction process.     to the state. New York sales tax is charged     to collect sales tax from such re-seller. The
They will provide information regarding        on the hammer price, buyer’s premium            art dealer, when re-selling the property,
sellers’ commission rates and other            and any other applicable charges on any         may be required to charge sales tax to
charges, auction venue, shipping and any       property picked up or delivered in New          its client, or the client may be required to
further services you may require.              York, regardless of the state or country        self-assess sales or use tax upon acquiring
                                               in which the purchaser resides or does          the property.
SOTHEBY’S SERVICES                             business.
                                                                                               Local Tax Advisors As sales tax laws vary
Sotheby’s also o ers a range of other          Where Sotheby’s Collects Sales Tax              from state to state, Sotheby’s recommends
services to our clients beyond buying          Sotheby’s is currently registered to collect    that clients with questions regarding the
and selling at auction. These services are     sales tax in the following states: California,  application of sales or use taxes to property
summarized below. Further information on       Colorado, Connecticut, Florida, Illinois,       purchased at auction seek tax advice from
any of the services described below can be     Maryland, Massachusetts, Minnesota,             their local tax advisors.
found at sothebys.com.                         Missouri, New Jersey, New York, Ohio,
                                               Pennsylvania, Texas and Washington. For         Photography:
Valuations and Appraisals Sotheby’s            any property collected or received by the
Valuations and Appraisals Services o ers       purchaser in New York City, such property       Ber Murphy
advice regarding personal property assets      is subject to sales tax at the existing New     Pauline Shapiro
to trusts, estates, and private clients        York State and City rate of 8.875%.             Glenn Steigelman
in order to help duciaries, executors,
advisors, and collectors meet their goals.     Sotheby’s Arranged Shipping If the                  INDIAN, HIMALAYAN AND SOUTHEAST ASIAN WORKS OF ART
We provide e cient and con dential             property is delivered into any state in
advice and assistance for all appraisal        which Sotheby’s is registered, Sotheby’s
and auction services. Sotheby’s can            is required by law to collect and remit the
prepare appraisals to suit a variety of        appropriate sales tax in e ect in the state
needs, including estate tax and planning,      where the property is delivered.
insurance, charitable contribution and
collateral loan. Our appraisals are widely                                                                                                             135
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