The Bureau of Alcohol, Tobacco, Firearms and Explosives has expanded the definition of what it means to be in the business of selling firearms, which will likely require tens of thousands of gun owners to obtain a federal firearms license to continue selling online, at gun shows or from the trunk of their cars.
The new rule will not apply in Texas, however, due to ruling earlier this month from a North Texas federal judge who granted Attorney General Ken Paxton’s legal challenge.
ATF has published guidance on what sort of activity requires a license and a background check for each purchase. “As a general rule, you will need a license if you repetitively buy and sell firearms to predominantly earn a profit,” ATF said.
Selling guns without a license is a federal felony punishable by up to five years in prison. There is no minimum number of gun sales that triggers a license requirement. And selling guns doesn’t have to be one’s primary occupation to run afoul of the law. Prosecutors do not have to prove a defendant actually earned a profit from the sales.
In general, certain business-like conduct will require a license. The following are some examples.
- Repetitively selling the same type of firearms within a year of buying them.
- Repetitively selling firearms within 30 days of purchasing them, especially if they’re still in their original packaging.
- Placing ads for guns, paying for business advertising or marketing a firearms business.
- Renting space to display firearms offered for resale.
- Renting a table at gun shows to display firearms for sale.
- Accepting credit card payments while selling multiple firearms at multiple gun shows.
- Telling potential buyers they can acquire additional firearms for that buyer to purchase.
