Gun Shows and the Texas State & Use Tax

• September 2006

Click Here for a PDF to Print.

If you sell guns and other taxable items at gun shows in Texas , you are required by law to have a sales tax permit and collect sales tax from purchasers. The gun show promoters are responsible for collecting and remitting sales tax at the show unless they first make certain that the show's participants have active sales tax permits.

If you sell taxable items very infrequently (for example, if your only sales are at a gun show you attend every other year), you can get a one-time sales permit that allows you to collect the tax and report it immediately after the sales occur. After that one-time event, the permit will no longer be valid and you will not have to file any more sales tax returns.

The Texas Comptroller's local field offices can issue you a sales tax permit and help you complete your sales tax return. You can also call the toll-free number 1-800-252-5555 to request an application packet ( #289 ) and get help completing the application and tax return.

For help in determining how to collect local tax, see our Local Sales and Use Tax Web site at http://www.window.state.tx.us/taxinfo/local/rateinfo.html

Reports and payments are due by the 20th of the month following the period (monthly, quarterly, or yearly) in which the sales were made . For example, a yearly report is due on January 20th of the next year. If you report and pay the tax by the due date, you are allowed to keep 1/2 percent (.005) of the tax you collected as a timely filing discount.

Tax Collection/Resale Certificates
An exhibitor must collect sales or use tax or get a resale certificate from a purchaser who will resell the merchandise. The invoice can separately state the tax or indicate that the tax is included in the sales price. An exhibitor who holds a sales tax permit can also purchase tax-free items that will be resold.

Occasional Sales
There is no sales tax when a person who is not in the business of selling taxable items sells one or two such items in a twelve-month period. For example, a doctor-who is not in the business of selling taxable items and doesn't hold a sales tax permit-sells a gun from her collection of antique weapons to a friend in March and a sword to a neighbor in July. In August, she participates in a gun show where she sells three more weapons. Because the doctor has not sold any other taxable items prior to the sale of the gun in March, she can sell the gun and the sword tax free as occasional sales. The sales at the show are within 12 months from the sale of the gun in March and thus do not qualify for the occasional sale exemption. The doctor must get a sales tax permit and collect tax on those sales and on all subsequent sales of taxable items. She will not qualify for the occasional sale exemption again until 12 months have passed without selling a taxable item.

For more information about the Texas Sales and Use tax, visit: http://www.window.state.tx.us/taxinfo/sales/index.html

94-153
(09/2006)

	Safety Compliance
	What is Accepted?
	Texas State and Use Tax.
	Prohibited Merchandise
	Unacceptable Sales Items
	Unacceptable Practices