What do buyers need to know about the Artist Resale Royalty Scheme?

Photo by Dillon Wanner on Unsplash

How the Artist Resale Royalty Scheme applies to your purchase.

When you buy a piece of art, you are supporting the artist (or their successor/s) who created the work. Your act of patronage through your purchase contributes to the longevity of the artists’ career and consequently, to the value of the art they create.

How this works for buyers

When the royalty may apply:

The 5% resale royalty will take effect should you later decide to resell the artwork, and it meets the criteria for a qualifying resale. The legislation ceases to apply 50 years after the artist’s death.

Who pays the royalty:

The following TWO persons are jointly and severally liable to pay the 5% resale royalty to RRA:

1) The seller.

and

2) The seller’s agent (usually an Art Market Professional). If the seller has no agent, then it is the buyer’s agent. If there are no agents, then it is the buyer.

Supporting artists:

When you purchase an artwork, you’re not only acquiring a piece of art, but you are also supporting the artist (or their successor) who created the work.

Applicability:

This scheme applies to original visual artworks created by citizens or residents of New Zealand and reciprocating countries (currently the United Kingdom and Australia), provided the resale value is $2000 or more.

Speak to your Auction House or Art Market Professional if you are unsure whether your purchase will be eligible under the scheme.

Thank you for your co-operation. This Scheme is an important part of protecting artists’ legacy over time and supporting the growth of Aotearoa New Zealand’s vibrant art community.