Sales tax on consignment sale

[westside bengal]

I assume it is just like any retail sale but I do want to ask.

I saw gun in a store that also sells new and used guns.

They had a gun marked "consignment" on the price tag.
I was told they take 10% of the sales price as their fee.
So the price is really set by the gun owner.

My question is since you are really buying the gun from a private person is sales tax charged on the purchase?

Or is it still considered just a normal retail sale?

Just wondering?

 

[BehindBlueI's]

IC 6-2.5-6-17
Payment of gross retail tax for consignment sales
Sec. 17. (a) A retail merchant that is a consignee in a retail transaction shall collect and remit the state gross retail tax on the gross retail income received in a consignment sale.
(b) The retail merchant shall provide the consignor purchaser an invoice that shows that the state gross retail tax was paid to the retail merchant with a clear notation on the invoice that the item was a consignment sale by the retail merchant on behalf of (insert the name of the seller) to (insert the name of the purchaser).
As added by P.L.85-2009, SEC.1.

 

[Redtbird]

Also, when a person takes in a rifle/pistol to a gun shop to be sold on consignment, the shop pretty much owns the gun. If for some reason it doesn't sell, or the original owner decides they want it back, then they (original owner) will have to complete a 4473 and go thru a background check. At that time, the gun shop returns the ownership of the weapon to the original owner.

If a customer purchases the weapon, then they will will complete a 4473 and go thru a background check.

At least, this is what I was told a few months ago when I had an LGS sell a rifle for me. They added 10% of my asking price as their commission on the sale, and I got the amount I was wanting.

 

[jspy5]

I had a couple of guns on consignment towards the end of last year ( they went unsold) and whenever I went back for them I just showed the original paper work ( kind of a generic form one might make up ) and they pretty much just handed them back over to me. No muss, no fuss.