Casual sales

From the 2024 DOR Tax Exemption Study

82.08.0251 - Casual sales Description For persons not otherwise engaged in business activities, the law does not require to collect sales taxes when they sell items or services meeting the definition of a retail sale to consumers. However, the buyer is not exempt from the use tax on the value of these purchases. Purpose To limit sales tax collections and reporting to business entities. Also, the exemption recognizes the practical problems associated with locating and registering casual sellers. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.712 $0.725 $0.739 $0.753 Local Taxes $0.179 $0.181 $0.183 $0.185 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.314 $0.352 $0.363 Local Taxes $0.000 $0.008 $0.009 $0.009 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the consumer price index growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Local revenue estimates use the statewide average local sales an