PSP Application/Record of Sale – What is Non-Taxable Sale?

On June 2, 2011, the Pennsylvania State Police (PSP) co-presented with the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE or ATF) at a Firearms Licensee seminar held at the Berks County Services Center. During the PSP’s presentation, the PSPexplained what was not a taxable sale for purposes of the PSPApplication/Record of Sale (Form SP 4-113) and how to document it on the form.

1. Person to Person Sale: If you, as the FFL, are only effectuating the transfer between two private individuals, no sales tax is due. In this situation, you simply fill out Section F of the form with the information of the Seller/Transferor

2. Estate Sale: While similar to the person to person sale, the sale of a firearm from an estate to a private individual, where you, as the FFL, are only effectuating that transfer,is non-taxable. In this situation, you would fill out Section F, where the decedent’s (the individual who died) information would be listed, including his/her address prior to death, and the Executor/Administrator/Personal Representative (the individual representing the estate) would sign in the signature box, followed by his/her title (AKA Executor/Executrix/Administrator/Administratrix…etc).

3. Even Trade: If you, as an FFL, are trading a firearm for another firearm that the private individual owns, where the values are equal, there is no tax due. In this situation, you would place your business name in the name box, your FFL number in the signature section, and list in any other blank box (probably the address box is best) “Equal value trade.”

4. Internet Sale: If a private individual buys a firearm online, say from Colorado, and you as acting as the receiving FFL, there is no tax due. In this situation, you would place your business name in the name box, your FFL number in the signature section, and list in any other blank box (probably the address box is best) “Internet Sale.”

If you ever concerned with whether a sale is non-taxable or how to properly fill out the form, please contact the PSP, as they are ready and willing to help you with any questions that you may have.

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Filed under Firearms Law, Pennsylvania Firearms Law

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