Firearm Transfer Fees Are Not Taxable In Texas

Monday, November 14, 2011

The Texas Comptroller’s Office has recently stated that firearm transfer fees are not taxable. Federal law requires that firearms purchased by an individual in Texas from an out-of-state vendor must be shipped to a Texas dealer for transfer to the purchaser. The Texas dealer may charge the purchaser a transfer fee to cover the cost of handling and paperwork. Because the gun is not purchased from the Texas dealer, the transfer fee does not represent a retail sale for sales tax purposes. Therefore, the transfer fee charged by the Texas dealer will not be subject to tax.

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