Nevada: Firearms Sold by Out-of-State Vendors

Out-of-state vendors are permitted to sell firearms to Nevada residents, provided the buyer passes the federally mandated background check. Yet what are the Nevada sales tax obligations of an out-of-state vendor of firearms?

When a Nevada resident purchases a firearm from an out-of-state seller, the seller must ship the firearm to a Nevada federal firearms licensee (FFL). In turn, the FFL completes the background check and then, background check-permitting, transfers the firearm to the Nevada consumer. The FFL is responsible for preparing all records “required pursuant to federal law.”

Since the FFL is the person who makes the delivery of the taxable good to the consumer, “the FFL must include the retail selling price of the property in his gross receipts, and must collect the sales tax due from the consumer.”

Exempt background check fee

The $25 fee to run a background check is exempt from Nevada sales tax. Required by law, it is “not a service as part of the sale and is therefore not included in the sale price.”

Taxable fees

Any additional fees and service charges assessed by either the FFL or the out-of-state dealer are considered part of the sales price and are subject to sales tax. A delivery charge is an example of such a fee.

Occasional sales

Individuals are permitted to make occasional sales in Nevada without registering to do business in the state or collecting sales tax. To be deemed an occasional sale, a person may make “two or fewer retail sales of tangible personal property during any twelve month period.” Make more than two retail sales annually and you must register to do business in the state and collect and remit sales tax.

Firearm repair services

Repair services in Nevada are exempt from sales tax. As a result, Nevada residents do not owe sales tax when they send a firearm out of state for repair, even when an FFL returns the firearm to them.

Additional information is available on Nevada Department of Taxation.

Automated sales tax Software-as-a-Service simplifies sales tax management for businesses that sell in multiple states. Learn more.

photo credit: Madbuster75 via photopin cc