The Colorado Auctioneer 2nd Quarter 2012 by Colorado Auctioneers Association

The Quarterly Newsletter of the Colorado Auctioneers Association

COLORADO AUCTIONEER

the Second Quarter • 2012

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Motor Vehicle Sales Tax Collection By OJ Pratt, Legislative Committee Chair

hese changes only apply to auctioneers who are not licensed auto dealers. If you have an auto dealer’s license and sell vehicles at auction don’t waste your time reading this article! You are already following these procedures. I attended a meeting of all the County Clerks of Colorado. A representative of the Department of Revenue also attended the meeting. I spoke to the gathering and detailed the approach that has been used for decades by auctioneers who did not hold an auto dealer’s license. All the attending clerks agreed that this was the process currently being used. (For any of you not familiar with what most auctioneers have been doing, we will not repeat it, as what follows here is now the correct procedure.) The Department of Revenue disagrees with the procedure most auctioneers have been following.. On page 5, we have published the memorandum that has been sent to all county clerks. It provides you the statutes that apply to this situation. I’ll attempt to describe the process we auctioneers should follow. Essentially, an auctioneer who is licensed to collect sales tax is required to collect sales tax on a vehicle sold to any buyer who resides in the State of Colorado. It is now a more complex collection process in that you should only collect sales taxes that the location of the auction has in common with the location where the buyer will license the vehicle. This is best described by a few examples which follow. Say you are conducting an auction within the city limits of Longmont. If the buyer lives in Longmont, you would collect all taxes for that buyer’s home address--State (2.9%), Boulder County Tax (.80%), RTD (1.1%) and City of Longmont (3.275%), for a total of 8.075%. If the buyer lives in Boulder County but not the City of Longmont, you would eliminate the city tax, charge everything else and the total tax would be 4.8%. If the buyer lives in Huerfano County, you would only collect the State sales tax of 2.9%. If the buyer lives outside of Colorado you would not charge any tax. HOWEVER, you may be asked to prove

the buyer took the vehicle out of state. The only sure way to remove any liability from your company for the sales tax (if you don’t collect it) is to have the buyer fill out state form DR0780. (If you “Google” Colorado Form DR0780, it will take you to the state website to download this form to print.) The taxes you collect should be clearly detailed on the receipt you provide to the customer. Confused? This will probably make the most sense to the person in your business that fills out the sales tax reports. I fully expect there will be problems as the Clerks adapt to this change. I can envision our customers caught in a merry-go-round between the auctioneer’s office and the county clerks as we try to get the taxes correct. I have requested that they simply accept – continued on page 4

 n What’s Inside Motor Vehicle Sales Tax Collection........................1 President’s Message.............................................3 A New Member’s View of CAA and His First Convention......................................6 Everrett Schneider Chairman of the CAA Hall of Fame.......................7 CAA Financial Report...........................................7 “She Don’t Use No Oil!”......................................8 2013 Convention News......................................10 CAA’s Auction Calendar & Website......................11

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The Colorado Auctioneer is published by the Colorado Auctioneers Association, Inc. 1685 S. Colorado Blvd., Unit S-160 Denver, CO 80222 www.coloradoauctioneers.org email: coloradoauctioneers@gmail.com The Colorado Auctioneer Newsletter is published quarterly, to serve as a communication tool between association meetings. Members are encouraged to submit news tips, stories, and ideas for future publications. Please contact: News & Photos Linda Tegtmeier Newsletter Editor 303-744-3219 CAAnews2012@gmail.com

Advertising Tad Bickley 719-633-5270 Scott Shuman 970-716-2120

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From the President It’s been an interesting year so far, with several changes that impact membership. The most significant change is that we ended our service agreement with Kathy Humphries at the end of May. The move was made to reduce expenses and streamline some of our administrative processes. Kathy has been a valuable part of our team and we appreciate her time, energy, and many contributions to the Association. We will keep you posted as the Board develops a long-range solution. In the short-term, Board members have volunteered their own time and some of their staff resources to ensure seamless services to our members. Another change is the member directory. We have decided to stop producing a printed version for all members. All of the information is currently available on our website, and we will be distributing a directory to all members by email. For those who don’t have email, or can’t live without one, we’ll be happy to print an individual copy and mail it to you. At this point in time, we don’t have sufficient sponsors and advertisers to make this a cost effective product. We’d like to acknowledge the very hard work by Board Member O.J. Pratt. He has put in countless hours trying to resolve the tax question of “Do we or don’t we collect sales tax on motor vehicles?” As you can imagine, working with various government agencies, who don’t agree on anything, was an incredible challenge. Our thanks to O.J. for his service to our members on this issue, as well as his coordination of our Day at the Statehouse, where the CAA was introduced on the floor of the House. Your Board is working hard to provide as much value to our members as we possibly can. The January Conference is already starting to shape up. Thanks also to Linda Tegtmeier, who is doing a fine job putting together the CAA newsletter, in cooperation with the several Board members who contribute to each issue. But we need YOUR NEWS! Tell us what’s going on! Have you sold any unusual items? Have you had any successes that you want to brag about? Relate a funny story from one of your auctions! Tell us, and we’ll publish it. I am proud to be on the Board and to be working with this incredible team. We’re working hard for you, and we hope you like what you see. Happy Auctioneering! Rich Schur CAI, MPPA, BAS, CMEA

BOARD OF DIRECTORS PRESIDENT: Rich Schur, CAI, GPPA, BAS, CMEA Schur Success Auction & Appraisal, Inc. 1042 West Baptist Rd., #175 • Colorado Springs, CO 80921 866-290-2243 Ext. 2 • Cell: 719-210-6230 rich@success-auctions.com 1st VICE PRESIDENT: Dax Gillium, BAS, CAGA, CES, GPPA Gillium & Hays Auction and Appraisal 4981 W. Tufts Ave. • Denver, CO 80236 303-795-9300 • Cell: 303-957-7495 • dgillium@msn.com 2nd VICE PRESIDENT: John Schaffner Schaffner Auctions • 36470 County Road Z • Wray, CO 80758 970-630-3402 • jschaffner51@yahoo.com CHAIRMAN OF THE BOARD: Lance Nichols Odle-Cumberlin Auctions • 38241 WCR 23 Eaton, CO 80615 • 970-686-2361 • Cell: 970-302-6185 lanichols@thinairnet.com TREASURER/ DIRECTOR: Walt Partridge, BAS Partridge Auctions • 6577 N. Windfield Ave. • Parker, CO 80134 303-840-7573 • Cell: 303-881-2632 • waltsells@hotmail.com Tad Bickley (2012-2014) Best of the West Auctions, LLC 433 E. Cucharras Street • Colorado Springs, CO 80903 719-633-5270 • tadbickley@gmail.com Casey Giddings, CAI (2011-2013) Rocky Mountain Estate Brokers, Inc. 24 Oak Ave. • Eaton, CO 80615 970-224-2050 • casey@whitleyauction.com Butch Hagelstrom (2012-2014) Buckhorn Auction Services • P. O. Box 306 Fort Lupton, CO 80621 303-827-5157 • buckhornauctions@earthlink.net Janelle Karas (2011-2013) AJ Karas Auctioneers 820 S. Monaco Parkway #213 • Denver, CO 80224 877-612-8494 • Cell: 970-799-3311 • janelle@ajkaras.com O. J. Pratt, CAI (2012-2014) Pacific Auction Companies 1330 Main Street • Longmont, CO 80501 303-772-7676 • Cell: 303-598-8585 ojpratt@pacificauction.com Scott Shuman, CAI (2011-2013) Hall and Hall 100 South Cherry Ave., Ste. 6D • Eaton, CO 80615 970-716-2120 • scott@hallandhall.com Linda Tegtmeier (2012-2014) Gold Star Auctions, Inc. 950 S. Milwaukee Way • Denver, CO 80209 303-744-3219 • goldstarauctions@comcast.net

2012 CAA President

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Motor Vehicle Sales Tax Collection – continued from page 1 whatever payment the auction customer’s paperwork shows and charge them any additional tax(es) due. Note: the clerks are not supposed to send the buyer back to the auctioneer to collect additional tax from the buyer. The buyer should only be sent back to you for a refund if you collected too much tax. WHAT IF I KEEP DOING THINGS THE OLD WAY? It is like speeding--if you don’t get caught, were you really breaking the law? This will only be an issue for you if your company is audited by the Department of Revenue. If you are audited, you will be required to prove that the sales tax was paid on vehicles you have sold. If you can’t prove they were paid, you might be required to pay them--are you willing to take that chance? WHAT ELSE CAN I DO? You are welcome to contact the Department of Revenue, your County Clerk or your elected representative. I have tried all three and the only potential I see for change would be through the legislature, which would be a monumental task. The statutes seem to require us to collect the tax--no matter how we have done it in the past.

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Tell Us Your Stories! Share your NEWS, your AUCTION SUCCESS STORY, or your AUCTION FUNNY STORY! Or send a great auction photo! Each issue, we’ll include as many items as we can. Also, for the next newsletter, we’d especially like to hear “What piece of auction advice sticks in your mind?” Please email your item(s) to: CAAnews2012@gmail.com by August 10 or snail-mail to Linda Tegtmeier 950 S. Milwaukee Way Denver, CO 80209

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What is ONE of the most IMPORTANT factors when considering your AUCTION advertiser?

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STATE OF COLORADO DEPARTMENT OF REVENUE State Capitol Annex 1375 Sherman Street, Room 409 Denver, Colorado 80261 (303) 866-3091 FAX (303) 866-2400 John Hickenlooper Governor Barbara J. Brohl Executive Director

Memo To:

County Clerks

From: Steve Asbell, Taxpayer Service Division Cc:

Maren Rubino, Operations Director, Titles and Registration Auto Industry Division Stuart Zion, Taxpayer Service Division

Date: April 30, 2012 Re:

Auctioneer Sales Tax responsibilities for motor vehicles

Under Colorado law, auctioneers are considered to be the retailer of items sold at auction, and must collect sales tax unless they are acting as an agent for another licensed retailer. [§39-26-102(1.3), C.R.S.] There is no statutory exception for motor vehicles. Auctioneers must collect sales tax on the sales price of motor vehicles sold by auction, unless the sale is otherwise exempt under Colorado law, such as a sale to a tax-exempt entity or a licensed dealer. If the buyer of the motor vehicle does not reside in the jurisdiction where the auction takes place, the auctioneer should only collect sales taxes that are in common between the buyer’s residence and the location of the auction. For buyers who are Colorado residents, the sales invoice should clearly state which local and special district sales taxes have been collected in addition to state sales tax. If the auctioneer is also a licensed dealer, they will complete Form DR 0024, Standard Sales Tax Receipt. If the buyer of the motor vehicle resides in an area that has a special district use tax (RTD or RTA), the auctioneer has the option to collect the special district use tax and remit it on the Retailers Use Tax Return DR 0173 or allow the buyer to pay the special district use tax at the time of registration. If the buyer is from outside of the state the auctioneer should confirm that the motor vehicle will be registered and used in another state within 30 days, in which case no sales tax should be collected. The auctioneer should have the buyer sign Form DR 0780, Statement of Sales Tax Exemption for Motor Vehicle Purchase. In instances where an auctioneer who is not a licensed dealer has failed to collect applicable sales tax, the county motor vehicle department should collect the tax at the time of registration.

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Membership

A New Member’s View of CAA & His First CAA Convention By Joe Willis

table, to the day I was leaving, it was a pleasant experience. I would highly recommend anyone in or associated with the auction business to become a member…and of course, to attend the Annual Convention, too!

LLC

ollowing the Colorado Auctioneers Association Convention in January, board member John Schaffner asked me to write a short article about my experience as a “first timer” at the convention. But first, let me introduce myself. I am Joe Willis--a 3rd generation Coloradoan and 1st generation auctioneer. My beautiful wife Jill and I have two wonderful daughters--Allie and Leah. Like many Colorado auctioneers, I’m lucky to have my wife’s great help in the auction business. About three years ago, after selling a family electrical business and not wanting to go back into the electrical field, I chose to follow one of my longtime interests and become an auctioneer. After working for a Denver-area auction company for about a year-and-a-half, I attended World Wide College of Auctioneering last September. Following ten jam-packed days there, Paul Behr handed me a piece of paper that says I’m an auctioneer! Now, thanks to Everett and Donna Schneider, I’m fortunate to really pursue the auction business under the highly-respected banner of WW Auctions & Real Estate. When I was at school, I first learned about the CAA and what it had to offer a new auctioneer, so I joined. A few months later I attended the CAA Convention and was impressed. While I was at the convention I met a lot of new people and enjoyed the seminars which were very informative for both new and experienced auctioneers. In my opinion, the seminars talked a lot about current website logistics, marketing skills, internet strategies, and how the internet is changing the direction of an auctioneer’s business. The people associated with the CAA I have met before, during and after the convention are Awesome! Everybody has been very helpful, honest, and respectful. I am impressed by how everybody is like a big family. I have never been in an association where everybody is a competitor to each other, but is more than willing to help each other out. It is refreshing to be associated with this type of professionalism. So my thoughts about the CAA as a new member: I wish I would have become a member years ago! The honesty, integrity, and professionalism of my peers has been admirable. From the day I joined to the time I was at the Convention registration

AU CT I O N & A P P R A I S A L S E R V I C E S

Dax Gillium • CES, CAGA, BAS Auctioneer/Appraiser

office 303.795.9300 • cell 303.957.7495 • dax@ghauctioneers.com

Partridge Auction Services Walt Partridge 2005 Colorado Champion Auctioneer Over 15 years experience as a Contract Auctioneer Phone: 303-881-2632 • Fax: 303-840-2058 waltsells@hotmail.com

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Hall of Fame

Everrett Schneider Chairman of the CAA Hall of Fame By Lance Nichols, Chairman of the Board

he Colorado Auctioneers Association created the Hall of Fame in 1984 to honor individuals who have demonstrated honesty, high ethical standards, a willingness to share with others, and a high standing in his or her community. He or she must also have made significant contributions to the auction profession and the Association alike. This past year, Everrett Schneider of Fort Collins accepted the position of Hall of Fame chairman. Everrett grew up on a farm near the small town of Bridgeport, Nebraska. This may explain why his heart is with agriculturebased auctions, and why he feels there is something very special about selling farm equipment. Everrett started in the auction business after attending World Wide College of Auctioneering in 1981. After he finished auction school, he worked in various auction barns in Western Nebraska and Northern Colorado. He and his wife, Donna, began working with Ernie Wimmer (who is also a CAA Hall of Fame member)

and his wife Beverly, at WW Auctions & Real Estate, Inc. in 1988. A short time later, the Wimmers retired, and the Schneiders purchased WW Auctions & Real Estate, Inc. He brings a long list of accomplishments to the profession of auctioneering, and is known as one of the highest-regarded business and estate auctioneers in Colorado. He has earned a reputation as a leader in business liquidation auctions, antique and estate auctions, real estate, and benefit auctions. However, he has concentrated his business efforts towards his agricultural clientele, and he has a great appreciation for the agricultural community. Everrett has been actively involved in the Colorado Auctioneers Association since 1984. He was elected to the Board of Directors in 1986, on which he served for ten years before being elected President in 1997. He generously gives of his time to charity auctions such as Make-a-Wish Foundation, The Boy Scouts, FFA Chapters, and many 4-H livestock sales in Northern Colorado. In addition, Everrett was awarded the Colorado State Bid Calling Championship trophy in 2004. Everrett Schneider embodies the spirit of the Colorado Auctioneers Association Hall of Fame. His demeanor, character, integrity, and professionalism are unparalleled and he is a true asset to both the community and our organization. Respectfully Submitted. Lance Nichols Chairman of the Board

CAA Financial Report

By Walt Partridge, Treasurer

he Colorado Auctioneers Associationâ&#x20AC;&#x2122;s financial position has weakened somewhat this year due to lower than expected revenue from the bid calling contest and the fun auction. Convention income less expenses this year produced a positive income of only $1,658.00. This means we must run through this year on dues, web site user fees, newsletter advertising, and our cash reserve. Our annual operating expenses are between $15,000 and $16,000. It is estimated we

will go into our 2013 convention with a cash reserve less than $7,000. We would like to enter each convention with a cash reserve around $12,000. Your Board is looking at ways to reduce costs and increase revenue. Each member can help by participating in our annual fun action as an active seller and buyer. The Board certainly wants to express its sincere appreciation to those members who continually support both the fun action and bid calling contest.

www.coauctioneers.org SECOND QUARTER â&#x20AC;˘ 2012

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“She Don’t Use No Oil!” Editor’s Note: This story first appeared in the Winter 1998 Colorado Auctioneer newsletter. The message is timeless and it is fun reading, so it seemed appropriate to include it again in this issue. It will be NEW to all the less-seasoned Colorado auctioneers and maybe even “NEW AGAIN” to some of the more-seasoned auctioneers (you know who you are)! “Good morning, ladies and gentlemen. We welcome you to the auction today. We have an excellent line of equipment and we want you to study it for yourself…nice equipment, but everything sells as is, where is.” Tell a good joke and now off we go through the shop tools, sell through the miscellaneous items, on to the equipment, and now we’re reselling the large motorized equipment. It’s been such a good sale, by now the word is already back to the coffee shop in town— “What a hot sale they’re havin’!” And you haven’t even sold the tractors yet! The crowd is humming with excitement as you step up to sell the John Deere 4440. The owner turns to the crowd with “Now folks, this has been my favorite tractor. It’s a 1983 model. I bought it brand new, and she don’t use no oil. I had the engine overhauled at 6,000 hours; that bill was $8,500, and I had them check everything out at that time. This tractor is solid and everything works.” Well, if old Joe says that’s the way it is, it will be just like that. “Okay boys, $8,500 in the engine, one owner, and everything works.” The tractor sells for a whopping $33,000, and everyone is muttering as they walk away. “Thank you all for coming, and have a safe trip home.” Well, it was almost a perfect sale. Good ol’ Jack caught you on the way out and said someone stole the anvil he paid $185 for. Darn, you hate that, because he’s been such a good customer. You buy him a sandwich to help settle his nerves, and he says he’ll catch you at the next sale. Old Joe is delighted when you settle up with him and everyone is happy, happy, happy! A couple of days later, good ol’ Bob calls up. “Hey, remember me? I bought the 4440 on Joe’s sale. I took her in to have it all checked out and tuned up. The dealer checked the serial number, and the last year they made 4440s was 1982. The air conditioner is shot, and it cost another $500 to fix all the lights and some switches. The $8,500 overhaul you represented was only $6,000, and that same dealer did the work. The way I figure, you owe me for the misrepresentation or I’m stopping payment on my check.” Boy, how lucky can you get! You settled with Joe this morning and gave him his check with a “Pleasure-doing-business-with you” handshake. After eating a handful of Rolaids, you call Joe and say, 8

By Everrett Schneider

“Hey, guess what?!” His response is, “I remember you saying ‘as is, where is’. And thanks for calling, have a nice day.” Another handful of Rolaids. After you sit back in your chair expressing your enthusiasm with every 4-letter word you know and using some two or three times, you call ol’ Bob. “Hey, I guess it’s ‘as is, where is’.” Oh boy, you can hear Bob’s reply with the receiver four feet from your ear. You’re out of Rolaids now, so you have an 8 oz. glass of Jack Daniels left over from the Christmas party last year. Now everyone is mad, mad, mad. Joe is keeping his settlement check. Bob is suing for his money back. And you’re getting letters from both attorneys. Boy, they never told me about all of this when I got in the auction business! I’ve had variations of this happen to me, and we’ve always managed to work it all out, but it has always cost me something—if not money, then in future business from both of those people and whoever else they convince that you’re an incompetent fool. Did you check the serial number? Was there a misprint on the year? Did you coach the seller and tell him if he wants to sell the equipment ‘as is, where is’, to not stand there and say “There’s my 4440, she’s been a good one”? Is someone going to pay the difference between $6,000 and $8,500 for misrepresentation on the repair bill? What about the $500 worth of incidentals – did everything really work like Joe said? Did you repeat what the seller said to reiterate the point, and did you repeat everything exactly as it was said? Did Joe say it is a 1983, or that he bought it in 1983? All of a sudden, there are three stories, so you ask a couple of the people you know who attended the auction, and they “don’t exactly remember”. You thank them for their support. I understand the buyer may be compensated for those misrepresentations, and now the owner denies some of those things and, of course, you didn’t record it, or forgot to flip the tape (hey...this was back in 1998!), or the engine was running and it wasn’t clear on the tape. It seems like a story too bad to be true, but when it rains, it pours, and you just can’t believe all the ways you had your tail covered and now you’re about to lose your tail! Besides coughing up some cash, you are probably jeopardizing your future business. My point is simple – be sure to check out all you can. Whatever you’re selling – real estate, equipment, antiques, vehicles or angel food cakes – don’t just mindlessly repeat what the seller says. Check every detail which could be important to a buyer and caution sellers not to overdo it on their representation of any item. Good deals can go south faster than the gavel can fall. Be careful, good luck, and C-Y-A!!!

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2013 Convention Takes Shape Planning for the next CAA convention is well underway with speakers lined up and venues secured. Scheduled for January 4, 5 and 6, it will take place at the Crowne Plaza Denver International Airport (I-70 & Chambers Rd.), where the convention has been held for the past three years. Speakers already scheduled to appear include Brian Knox, the 2007 IAC Champion and Tim Luke, an auctioneer and appraiser with extensive knowledge in antiques and collectibles who is a featured appraiser on HGTV’s “Cash in the Attic” program. Also on the line-up is Jenelle Taylor…also known as the “Benefit Gala Gal”. Janelle will be presenting a seminar on benefit auctions. Jenelle may also be conducting her two-day “Benefit Boot Camp” training session before or after the convention. Questions or suggestions for the Convention? Give Dax Gillium a call at 303-795-9300.

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“Treat each item you sell with the utmost respect. Remember that you may be selling in a few hours – or even in a few minutes – something it took your seller a lifetime to acquire.” Advice to the February 1994 class at World Wide College of Auctioneering from Bill Addis, then owner of WWCA, as remembered by Colorado auctioneer Linda Tegtmeier.

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CAA’s Auction Calendar and Website: A Great Place to Promote Your Auctions & Tout Your Triumphs!

ooking for a way to reach more potential buyers for your auctions? Make sure you are posting them all to the Colorado Auctioneers Association auction calendar! The CAA website features an easy-to-use, searchable auction calendar. Auction enthusiasts are able to search for auctions by date, category, location or Auction Company/Auctioneer. As an added benefit, auctions added to the calendar on the CAA website also automatically appear on the AuctionZip website. Both sites are visited frequently by thousands of auction buyers across the country (around the world?) looking for your auction! The yearly fee of just $75 gives you access to list your upcoming auctions. Once the fee is paid to CAA, you will be emailed a username and password to gain immediate access to the site and calendar for posting your sales. The CAA website offers much more than just an auction calendar. CAA members can access past newsletters & read about upcoming CAA events. It’s also the place to go to download the CAA logo to include on your marketing pieces,

which then makes them eligible to submit for the annual CAA Marketing Contest! Click on the “Auction Highlights” tab to see select items and the prices realized from completed auctions. A great chance to do a little tasteful bragging, this is can be a great marketing tool if you take advantage of it by posting some of the sales you are particularly proud of. A novice auction attendee can access valuable basic auction information on the CAA website. In this day and age of reality TV and auction shows, more people than ever want to figure out how this whole auction process works. This is comprehensive article answers questions for someone who has never been to an auction. It may prove to be the final push someone needs to take the plunge and show up at your auction! Please take some time to explore every tab on the CAA website. Visit www.coauctioneers.org to learn what the website can offer your business. For help, website story suggestions, or to gain access to the auction calendar, contact Casey Giddings, CAI at 970-224-2050 or casey@whitleyauction.com.

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Colorado Auctioneers Association, Inc.

1685 S. Colorado Blvd., Unit S-160 Denver, CO 80222 www.coloradoauctioneers.org

MI S S I ON • V I S I ON

C A LEN D A R

Mission: The Colorado Auctioneers Association (CAA) promotes the auction method of marketing to all buyers and sellers through continued professionalism, education and experience. Vision: The Colorado Auctioneers Association will consist of a trusted and experienced organization of professional auctioneers that promote the auction method of marketing as a practical and enjoyable first choice of selling property (real or personal property).

August 10 October 19 December 1 December 26

W Since 1933

Articles & ads due for Third Quarter Newsletter Articles & ads due for Fourth Quarter Newsletter CAA Scholarship applications deadline Last postmark date for Marketing Contest entries which are mailed in January 4-6, 2013 CAA Annual Convention

World Wide College of Auctioneering MASON CITY, IOWA

Do You Know Someone Who Would Like to Become an Auctioneer?

Come to World Wide and Train with the Champions!

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DATES

September 8-16, 2012 (Held in Denver, Colorado) November 10-18, 2012 February 16-24, 2013 June 8-16, 2013

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