Michigan Attorney General Bill Schuette has released a new consumer education newsletter that answers many common questions Michigan residents may have when hosting or visiting a garage sale this summer.
“Garage sales are very common across the state, especially in the warmer summer months,” said Schuette. “Many residents have questions such as ‘Do I need to pay taxes on what I am selling or purchasing?’ or ‘Is a permit required?’ This newsletter looks to answer those frequently asked questions and more, so all Michigan residents can have a smooth garage sale experience.”
The newsletter also offers tips for both garage sale sellers and buyers. Some of the tips outlined in the newsletter include:
Consumer Protection Law:
• The Federal Consumer Product Safety Improvement Act applies to both primary sellers and resellers, which include those hosting a garage sale.
• It is illegal to sell recalled items, so whether you are a buyer or seller, make sure to search the recall list on the U.S. Consumer Protection Safety Commission website when preparing for a yard sale.
Do You Need a Permit?
• Many local municipalities require a permit to hold a garage sale, so it is important to check for the proper requirements before scheduling a garage sale.
o Some communities also limit the number of garage sales that can be held a year, the duration of the sale, or where items can be located on the property.
Do You Need to Pay Taxes?
• Income Tax: Unless an individual holds yards sales regularly or as a business, income tax is not required to be reported. Losses are not deductible either.
• Sales Tax: Yard sales are considered “isolated” sales, so products being sold are not subject to sales tax.