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 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.
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.
For more information about garage sale safety tips visit the Attorney General's website at www.michigan.gov/ag.
Published: Fri, Jul 14, 2017
