Second Hand Dealer Questions - Buy/Consign Used Guns

[Elite Armory]

We just got our Second Hand Dealers license . But I have a couple of questions...

1) I know when we take a gun in on consignement or buy a used gun, we have to hold it for 30 days. Is there anything wrong with us displaying the gun AND letting people check it out/handle it during the 30 days before we can actually run paper on it?

2) My understanding is that if I put a non roster handgun on consignment, I can sell it to non-LEO but if I purchase a used non roster handgun I then cannot sell it to non-LEO. Is this correct?

[DEPUTYBILL]

1.The shops in my area,do both. I have seen the consignment guns on display in the cases,the dealer just says that the 30 day hold is on the gun and its sell date is the end of the thirty days.
2. I think the key is if it is a consignment gun,it is exempt. If it is a shop gun,the roster still in effect.

[Zedrek]

All the places I have been to have them out with a sign or note saying it can't be sold until such and such date. I just bought a off-roster Bersa Thunder that was on consignment. They had just put it out when I seen it last month and I had to wait the 30 days before they could start DROS. They wouldn't let me start DROS on the 20th day so that I could pick it up on the 30th day sighting CDOJ saying they got upset with them so you might want to look into that. I don't see what the difference is. Thirty days is thirty days.

[kemasa]

1) I know when we take a gun in on consignement or buy a used gun, we have to hold it for 30 days. Is there anything wrong with us displaying the gun AND letting people check it out/handle it during the 30 days before we can actually run paper on it?

Not that I know of and many places will sell it at the 20 day mark so that the waiting period ends when the 30 days end, BUT this also risks the money since it is possible to have an issue and then the DROS would have to be cancelled.

2) My understanding is that if I put a non roster handgun on consignment, I can sell it to non-LEO but if I purchase a used non roster handgun I then cannot sell it to non-LEO. Is this correct?

Correct. You have to do the transfer of the consignment as a PPT and have the seller sign a DROS worksheet.

[Elite Armory]

Not that I know of and many places will sell it at the 20 day mark so that the waiting period ends when the 30 days end, BUT this also risks the money since it is possible to have an issue and then the DROS would have to be cancelled.



Correct. You have to do the transfer of the consignment as a PPT and have the seller sign a DROS worksheet.

Thanks for the replies.

Just to be perfectly clear, so it is okay for customers to physically handle the used/consigned firearms before the 30 days is up?

Do all consignments get transfered as PPT? If so, is there any sales tax to collect?

When transfering as a PPT, would I just manually enter all of the sellers information into the seller portion of the DROS and have the seller sign the DROS when they come pick up their money?

[kemasa]

Thanks for the replies.

Just to be perfectly clear, so it is okay for customers to physically handle the used/consigned firearms before the 30 days is up?

Yes.

Do all consignments get transfered as PPT? If so, is there any sales tax to collect?

If it is a handgun not on the certified list then it has to be done as a PPT. Otherwise it does not matter.

Yes, sales tax has to be collected. There is the incorrect belief that a PPT is exempt from sales tax, but that is only when the FFL does not find the buyer or seller and does not get involved in the price. In the case of a consignment, the FFL gets involved in finding the buyer and gets involved with the price, which make it subject to sales tax.

When transfering as a PPT, would I just manually enter all of the sellers information into the seller portion of the DROS and have the seller sign the DROS when they come pick up their money?

No, not really. The seller should sign the DROS worksheet at the start of the consignment, with all the information. You can have them sign the DROS when they come pick up the money and then the DROS worksheet would not be needed. What would happen if the person wants the money sent to them as a check instead of picking up the money?

[Elite Armory]

No, not really. The seller should sign the DROS worksheet at the start of the consignment, with all the information. You can have them sign the DROS when they come pick up the money and then the DROS worksheet would not be needed. What would happen if the person wants the money sent to them as a check instead of picking up the money?

How would you do this in the instance of multiple consignments? Say someone brings in 5 non roster handguns. Would you have them sign the seller portion of the DROS worksheet and leave everything else blank including the firearm portion? Or would you fill out a seperate DROS worksheet for each non roster handgun?

[kemasa]

How would you do this in the instance of multiple consignments? Say someone brings in 5 non roster handguns. Would you have them sign the seller portion of the DROS worksheet and leave everything else blank including the firearm portion? Or would you fill out a seperate DROS worksheet for each non roster handgun?

I would do 5 separate DROS worksheets, one for each firearm. You would need each one for each firearm that sells. I would not leave things blank as the person should not sign a blank DROS worksheet (but many people might).