NAN 2007 Auction Payment and Proxy Bidding Policies

NAMHSA encourages everyone to attend the NAN 2007 auction, scheduled for 7:00pm on Friday, June 22, 2007. For those who cannot attend, NAMHSA is pleased to offer proxy bidding once again this year. Do not assume items cannot be won by proxy ­as a significant number of NAN auction items are distributed to successful proxy bidders each year. Using the following instructions will streamline the proxy bidding process and ensure that your bid is properly recorded.

When and where do I proxy bid?

The proxy bidding period will be Friday, June 8, 2007 through Thursday, June 21, 2007. All proxy bids must be received by 10:00pm eastern time (7:00pm pacific) on June 21, 2007. Proxy bids must be sent to Shay Canfield at orionfarms@gmail.com. The receipt of all email proxy bids will be confirmed via a return email.

If you do not have access to e-mail, you may instead place a proxy bid by phone at 540-305-9593 between 8:00pm-11:00pm eastern time (5:00pm-8:00pm pacific). Please note that collect calls will NOT be accepted. If you are connected to voice mail, it means that I am on the other line. Do not leave a message with your bid information; simply try your call again later.


What information must I include?

Proxy bidders must supply the following information in their e-mail:
  • full name
  • mailing address
  • phone number(s)
  • e-mail address
  • anticipated mechanism of payment (see payment options),
  • title and artist(s) of consignment on which they are bidding,
  • maximum bid amount on that lot.
If you are bidding on multiple items, please send a separate e-mail for each item.


Taxes

First, please note that we will collect 8.25% sales tax on 1) any item selling for more than $5,000.00, and 2) any portion of any selling price which is not being donated to NAMHSA.

For example, if an item is a 100% donation and sells for $5,000.00 or less, then NO SALES TAX will be collected. If an item is a 100% donation and sells for $5,010.00, then $413.33 in tax (8.25% of $5,010.00) will be collected. If an item is a 75% donation to NAMHSA and sells for $100.00, then a $2.06 sales tax (8.25% of $25.00) will be collected.

This may seem unusual, but this system is necessary to comply with Texas tax law. Please note that NAMHSA is a 501(c)(4) organization. According to the Texas state tax code, § 151.31(c): 
An organization that qualifies for an exemption under Subsection (a)(1) or (a)(2) of this section, and each bona fide chapter of the
organization, may hold two tax-free sales or auctions under this subsection during a calendar year and each tax-free sale or auction
may continue for one day only.  The sale of a taxable item the sales price of which is $5,000 or less by a qualified organization or
chapter of the organization at a tax-free sale or auction is exempted from the sales tax imposed by Subchapter C of this chapter, except
that a taxable item manufactured by or donated to the qualified organization or chapter of the organization may be sold tax free 
regardless of the sales price to any purchaser other than the donor. The storage, use, or consumption of a taxable item that is acquired
from a qualified organization or chapter of the organization at a tax-free sale or auction and that is exempted under this subsection
from the taxes imposed by Subchapter C of this chapter is exempted from the use tax imposed by Subchapter D of this chapter  until the
item is resold or subsequently transferred.
An organization that qualifies under (a)(2) would be "an organization qualifying for an exemption from federal income taxes under Section 501(c)(3), (4), (8), (10), or (19), Internal Revenue Code, of the item sold, leased, rented, stored, used, or consumed relates to the purpose of the exempted organization and the item is not used for the personal benefit of a private stockholder or individual;"

In other words, NAMHSA has designated this auction as one of the two tax free sales a year to which it is entitled. However, any item selling for more than $5,000.00 must be taxed, and any portion of the sale which is used for the "personal benefit of a(n)... individual" must also be taxed. This system was verified with both a CPA from the office of the Texas Comptroller of Public Accounts, and with NAMHSA's attorney.

Click here for a chart detailing the sales tax rates for Mesquite, Texas. Note that the 8.25% tax rate includes a 6.25% state tax and a 2.00% county tax.

If you have any questions about the taxes due, contact Shay Canfield.
Shipping

Please note that your bid amount does not include shipping costs (i.e., postage, insurance, and handling). Shipping will be calculated and added separately to your total. For example, a person wins a consignment by proxy for $100.00, taxes (if applicable) and postage costs will be added to that value. We'll assume that this item is a 50% donation. Thus, in this example, the total due would be $119.13, including the $100.00 bid, $4.13 sales tax (8.25% of $50.00), and $15.00 shipping. Note postage and insurance will be calculated individually for each item, and each item will include a $2.00 handling fee. This $2.00 goes towards the purchase of packing peanuts and bubble-wrap, etc., to help ensure that you receive your item safely.

Items will be mailed by USPS Priority Mail within the U.S., or USPS Global Express or Global Priority Mail outside of the U.S. Insurance is REQUIRED on all items. Items will be mailed within ten (10) days of receipt of a money order or PayPal payment, or within two (2) weeks of receipt of a personal check.

How does proxy bidding work?

We treat proxy bids in essentially the same manner as does eBay®. For consignments being sold without reserve, the bidding starts at the minimum bid and bids will be placed on behalf of the proxy bidder up to the proxy bidder's maximum. For items being sold with a reserve, bidding starts at the minimum bid if the proxy bidder's maximum is below the reserve price. If the proxy bidder's maximum is above the reserve price, the bidding starts at the reserve price (so that we assure that the reserve is met, whenever possible). From that point, again bids will be placed on behalf of the proxy bidder up to the proxy bidder's maximum.

Will I know if my proxy bid has been outbid?

An attempt will be made to let proxy bidders know via email if they have been outbid during the proxy bidding period (i.e., by another proxy bidder). Due to the sometimes unreliable nature of email, we cannot guarantee this service, particularly toward the end of the proxy bidding period. Realistically, this notification period will extend until Tuesday, June 19, 2007. After that date, there may not be sufficient time to contact proxy bidders who have been outbid. This is a reason to bid early! Please note due to the unreliability of email delivery, NAMHSA and the NAN Auction Coordinator are not responsible for untimely or undelivered email proxy bids. Resend your bid if you do not receive a confirmation via email within 12 hours.

How will I be notified if I am the winning bidder?

Winning proxy bidders will be notified by email and/or telephone as soon as possible after the NAN auction and must make payment within seven (7) days of notification, using an accepted means of payment (see below). If payment is not received within seven (7) days of notification, the consignment may be offered to the immediate under-bidder, or auctioned via eBay®.
What are my payment options?

If you are a winning bidder in person at the NAN auction, you must provide immediate payment. You will then be able to take your item home with you! Your payment options will be:

  1. Cash;
  2. Traveler's checks; and
  3. PayPal.
Please note the following:
  • We will NOT be able to accept credit cards other than via PayPal!
  • We will NOT be able to accept a personal check.
  • We cannot accept e-checks via PayPal, as they take several days to clear.
For those paying by PayPal, a laptop with Internet access will be made available on-site. You must sign up for a PayPal account before the day of the auction; we recommend you do this at least a week ahead of time. You must have your paypal account linked to a credit card for transactions over $500.00. Generally, having a credit card linked to your account will allow you to spend up to $2,000. Please check your PayPal spending limit ahead of time to avoid unpleasant surprises at the auction.

Note that receipts will be provided for all cash or traveler's check payments. Also, traveller's checks can be combined with cash. For example, if the winning bid is $567.00, you may pay $500.00 in traveller's checks and $67.00 in cash.

If you are a winning proxy bidder, you will have the following payment options:

  1. Money order;
  2. Cashier’s check;
  3. Personal check; and
  4. PayPal .


Caveats

All NAN auction items have been described and pictured to the best of our ability. Auction purchases are NOT refundable. Information on this page is subject to change.

Last updated June 8, 2007

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