Belt Auction

Sales tax on 'liquidated' clothing in NJ?

If someone was to purchase a liquidated lot of clothing, by auction, can the auctioneer collect sales tax on that lot of clothing for the state of NJ? There is no sales tax for clothing in NJ, but a supplier for liquidated clothing that I know, insists on collecting sales tax on items sold, even though they are strictly clothing. Any answers, ideas, or thoughts here???

Public Comments

1. There is no sales tax on clothing in NJ. There is no sales tax on business to business transactions in NJ. He should NOT be collecting sales tax. See the NJ State Division of Taxation website for more info. Good luck!