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Ezel / Tax Rulings / CT
CT Ruling 89-98 Sales and Use Taxes 1989-09-19

Who had to collect Connecticut sales tax on firearms bought at a tax-exempt charity's auction: the auctioneer or the delivery agent?

Short answer: The auctioneer was treated as the retailer and had to collect and remit tax on the firearm sales. The company that only transported the firearms to buyers under firearm regulations was not required to collect tax on the firearm charge.

Apply this to your situation

This page answers the general question as of 1989. Ezel answers yours, under current Connecticut tax law, with citations.

Currency note: this ruling is from 1989
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official 1989 Connecticut Department of Revenue Services Ruling applying the then-current 8% sales-tax provision to a charity auction's firearm sales and a delivery agent's limited role. Tax rates, statutes, regulations, and transaction structures may have changed, and another taxpayer should not assume this historical ruling controls current sales. Connecticut imposes sales and use tax solely at the state level: there are no local or municipal sales taxes. This summary is informational only and is not legal or tax advice. Consult a licensed Connecticut tax professional about current collection duties.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

The auctioneer, not the delivery agent, had to collect and remit sales tax on firearms purchased at the tax-exempt charitable organization's auctions.

The ruling treated the auctioneer as the retailer of the firearms. The delivery company only transported them to buyers in compliance with federal and local firearm regulations, and that delivery role did not make the company liable to collect tax on the amount charged for the firearms.

The ruling quoted the 1989 statute's 8% tax rate; that historical rate should not be assumed to be current.

What this means for you

The ruling assigned collection responsibility according to who made the retail sale. Merely delivering regulated property for the seller did not transfer the seller's tax-collection duty to the delivery agent on the stated facts.

Common questions

Who was the retailer under the ruling? The auctioneer.

Who had to collect and remit tax on the firearms? The auctioneer.

Did the delivery agent have to collect tax on the firearm price? No.

Did the charity's tax-exempt status make the firearm sales nontaxable? No such exemption was applied; the ruling required the auctioneer to collect tax.

Citations and references

  • Conn. Gen. Stat. § 12-408(1) and (2), as cited in the ruling.
  • Conn. Gen. Stat. § 12-407(12)(a) and (b), as cited in the ruling.
  • Reg. Conn. State Agencies § 12-426-17(d), as cited in the ruling.

Source

Original ruling text

Ruling 89-98, Nexus

The issue you presented was whether or not you are liable for the collection and remittance of a sales tax when, as a delivery agent for a tax-exempt charitable organization, you transport firearms in accordance with federal and local firearm regulations to the individuals who purchase these firearms at such auctions.

Pursuant to Conn. Gen. Stat. §12-408(1), the sales tax is imposed on the privilege of making any sale at the rate of 8% on the gross receipts of retail sales of all tangible personal property. It is the retailer of such property who must remit the tax to the State of Connecticut and collect such amount from the consumer; Conn. Gen. Stat. §12-408(2).

Under the facts as described above, the auctioneer would be considered to be the retailer of the tangible personal property (the firearms) and as such, would be required to collect and remit the sales tax; Conn. Gen. Stat. §12-407(12)(a) and (b) and Conn. Agencies Regs. §12-426-17(d).

The delivery services performed by X Company will not render it liable to collect a sales tax on the amount charged for the firearms.

LEGAL DIVISION

September 19, 1989

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