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8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 19
1 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
Executive Action to Strengthen
Background Checks by AddressingHigh-Volume Gun SellersBy Chelsea Parsons and Arkadi Gerney October 15 2015
In recen years proponens o sronger gun laws have coalesced around one key legisla-
ive proposal close he loopholes in he law ha allow guns o be sold wihou a back-
ground check Tis gap in he law is a primary way ha dangerous individuals legally
prohibied rom gun ownership991252such as hose conviced o violen elonies domesicabusers and ugiives991252are able o acquire guns1 Such effors have ocused primarily on
legislaion a boh he ederal and sae level ha would amend exising law o require
all sellers o guns no jus licensed gun dealers o conduc a background check beore
compleing a sale While hese effors have salled in Congress a number o saes have
made progress o enac universal background checks including he 2013 passage o such
a law in Colorado2 a successul ballo iniiaive in Washingon sae in November 20143
and mos recenly he enacmen o a new Oregon sae law in May 2015 4
However i is also possible o address aspecs o his loophole via execuive acion a
he ederal level Federal law requires individuals who are deemed o be ldquoengaged in he businessrdquo o dealing in firearms o obain a ederal firearms license or FFL rom he
Bureau o Alcohol obacco Firearms and Explosives or AF5 Becoming a licensed gun
dealer has wo primary consequences Te licensee is subjec o oversigh and regula-
ion by AF and is required o conduc background checks or all gun sales Ensuring
ha all individuals who are engaged in he business o selling guns are in ac licensed
has significan implicaions or he number o ransacions ha are covered by he exis-
ing sauory background check requiremen
Unorunaely he exising sauory and regulaory language regarding wha exacly i
means o be ldquoengaged in he businessrdquo is vague and ambiguous and provides insufficien
guidance o individuals AF and ederal prosecuors regarding who is required o
obain a ederal firearms license because o he volume and characer o heir gun sales
and who is violaing he law or ailing o do so Tis weakness in he curren regulaory
ramework allows unscrupulous individuals o exploi his ambiguiy and sell guns a a
high volume wihou oversigh rom AF and wihou conducing background checks
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 29
2 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
In recen weeks he issue o his weakness in he curren regulaory definiion o wha
i means o be engaged in he business o dealing in firearms or purposes o deermin-
ing who is required o become a licensed gun dealer has received naional atenion and
he Obama adminisraion has indicaed ha i is considering opions or amending he
regulaion6 In his issue brie he Cener or American Progress offers opions or how
he regulaion could be amended o provide beter guidance regarding when an indi-
vidual is engaged in he ype and volume o reail gun sales ha warran AF oversighhrough a ederal firearms license CAP also examines he ramework many saes use
o deermine which reail sellers are engaged in business aciviy ha warrans collec-
ion o sae sales ax as a useul analogy or how he aoremenioned engaged-in-he-
business regulaion could be improved CAP proposes a nuanced approach ha would
ake ino accoun a number o acors in deermining wheher an individual is engaged
in he business o dealing in firearms ha includes no only he number o guns sold bu
also oher aspecs o he business such as requency o sales oal proceeds and oher
indicaors o he commercial naure o he sales aciviy Finally CAP concludes ha he
Obama adminisraion can and should rewrie he ederal regulaion ha defines which
gun sellers are required o conduc background checks991252and ha doing so would repre-sen a meaningul bu modes sep oward he goal o ensuring ha all gun sales involve
a background check
Weaknesses in the current regulation
Federal law requires ha any person who is ldquoengage[d] in he businessrdquo o ldquodealing in
firearmsrdquo obain a ederal firearms license rom AF and become a licensed gun dealer7
Such licensed dealers are he only individuals mandaed by ederal law o conduc back-
ground checks prior o compleing any gun sale Te saue goes on o define he ermas ollows
A person who devoes ime atenion and labor o dealing in firearms as a regular
course of rade or business wih he principal objecive of livelihood and profi hrough
he repeiive purchase and resale of firearms bu such erm shall no include a person
who makes occasional sales exchanges or purchases of firearms for he enhancemen
of a personal collecion or for a hobby or who sells all or par of his personal collec-
ion of firearms8
Te curren AF adminisraive regulaion ha provides addiional definiion and
clarificaion regarding a number o sauory provisions relaed o AF ound in secion
47811 o ile 27 o he Code o Federal Regulaions offers an idenical definiion o he
erm and does no provide any urher guidance abou how o assess wha consiues
ldquooccasional salesrdquo or how o deermine wheher a personrsquos reail aciviy is underaken
ldquowih he principal objecive o livelihood and profirdquo9 Tis is precisely he purpose o
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 39
3 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
enacing a body o adminisraive regulaions relaing o ederal legislaion o provide
addiional adminisraive guidance as o how he regulaory agency should inerpre and
apply cerain erms and conceps
Tis vagueness in he curren regulaory definiion has provided he opporuniy or
individuals o ake advanage o he ambiguiy and sell guns a a high volume wihou
becoming licensed and hereore wihou conducing background checks I also makesi difficul or law enorcemen o successully charge someone wih violaing he law by
selling guns wihou a license Former AF agen John Risenhoover in a recen iner-
view explained he challenge o meeing he high burden o proo creaed by he curren
vague regulaory definiion o engaged in he business ldquoYou know how you can bea
any o hese cases Shu up I you donrsquo say anyhing irsquos really hard o proverdquo 10 He also
relayed ha gun sellers are well aware o his challenge or law enorcemen and ofen
knowingly exploi i or profi ldquoI you go o gun shows in he deep Souh or Arizona
here will be people who have boohs where hey go buy new guns rom an FFL and hen
sell hem a a markup under a sign saying lsquono paperwork necessaryrsquordquo said Risenhoover11
Even wih hese challenges here have been some successul recen prosecuions o
individuals who illegally sold guns wihou a license ha provide a limied glimpse ino
he kind o unlicensed gun sales ha pose he bigges concern or law enorcemen12
In July 2015 an individual in Orlando Florida was conviced o selling guns wihou a
license afer he sold 113 guns over a 14-monh period or around $63000 including a
leas one sale o a prohibied purchaser13 In June 2015 an individual in Camden New
Jersey was conviced o selling guns wihou a license afer he admited o selling a
leas 200 handguns over a nine-monh period many o which were sold o an admited
drug dealer who hen resold many o hose guns o oher drug dealers14 In May 2013 a
woman in Manassas Virginia was conviced or violaing his law afer she purchased 31handguns a guns shows across hree consecuive weekends wih he inen o reselling
hem A number o hese guns were laer used in drug-rafficking crimes in Maryland15
State sales tax collection laws and regulations An instructive analogy
As policymakers consider opions or amending he regulaion o provide beter
guidance as o wha i means o be engaged in he business one useul se o laws ha
provides a model is sae laws governing who is required o collec sae sales ax Nearly
every sae imposes a sales ax on goods sold wihin he sae16 In many saes cerain
individuals and eniies are exemp rom he sales ax collecion requiremen i hey
engage in low-volume or inrequen sales ofen described as ldquooccasionalrdquo or ldquocasualrdquo
sales Many o hese sae laws ake a nuanced approach o deermining wha consiues
an occasional or casual sale ha considers no only he raw number o producs sold
bu also oher acors ha assess he overall naure o he business such as requency o
sales aciviy characer o producs being sold and amoun o money earned hrough
he sales ransacions By and large hese sae laws and regulaions defining wha kinds
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 49
4 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
o sellers should collec axes are more houghul precise and enorceable han he
curren vague ederal regulaion ha defines ldquoengaged in he businessrdquo as relaing o gun
sales Examinaion o some o hese sae sauory and regulaory schemes or deermin-
ing which vendors are obligaed o collec sales ax provides useul guidance or redraf-
ing he engaged-in-he-business gun regulaion
Missouri
In Missouri he ollowing acors are o be considered in deermining wheher an
individual is engaged in business and hereore required o collec sales ax wheher he
individual adverises or oherwise holds him or hersel ou as being a reailer requency
and duraion o sales aciviy and he naure o he marke or he good or service being
sold Missouri law and regulaion also provide ha regardless o he above acors any
individuals who earn more han $3000 in a calendar year hrough heir sales aciviy
will no be considered o be engaging in occasional or isolaed sales17
Nebraska
Nebraska exemps rom he sales ax collecion requiremen individuals who are only
engaged in occasional sales Sales aciviy only qualifies as an occasional sale i al l o he
ollowing condiions are me Te sales ake place a he personrsquos residence or via an
online aucion sie sales occur no more han hree days during he calendar year nei-
her he individual nor any members o he individualrsquos household operaes a business
in which similar producs are sold he propery being sold was originally purchased or
he individualrsquos personal use and he propery being sold is no subjec o any oher lawha would require ha he sale no be considered occasional Nebraska also provides
ha any sale ha is aided by an agen or aucioneer any sale in which he seller did no
pay sales ax when he or she firs purchased he iem and any sale o propery ha was
originally purchased or he purpose o resale do no quali y as occasional sales18 I
Nebraskarsquos rules were applied o guns mos o he aciviy o unlicensed sellers operaing
ables a gun shows would clearly be beyond he occasional-sale excepion Such unli-
censed gun show sellers commonly sell new-in-he-box guns ren space a he show o
sell he guns operae a more han hree shows a year and operae ouside heir homes19
Texas
exas also provides an occasional-sales excepion o is sales ax collecion requiremen
Sae law and regulaion provide ha here are wo caegories o qualiying sales Firs
an individual who engages in only one or wo sales a reail during a 12-monh period
and does no hold him or hersel ou o be engaged in he business o selling such iems
a reail qualifies or he occasional-sales excepion Second he sales are considered o
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 59
5 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
be occasional sales i he ollowing acors are me Te propery was originally pur-
chased by he individual or a amily member or personal use he individual does no
have a permi o be a seller or reailer as required by sae law he individual does no
use a broker or aucioneer o aciliae he sale and he oal proceeds rom he sale in a
calendar year do no exceed $300020
West Virginia
Individuals who engage in wha are deemed ldquoisolaed ransacionsrdquo are no required o
collec sales ax in Wes Virginia Sales qualiy as isolaed ransacions i he seller is no
in he business o regularly selling he ype o produc being sold and he seller does no
engage in more han our isolaed ransacions in a 12-monh period21
Florida
Florida law exemps occasional sales o goods rom sales ax collecion Te ollowing
condiions mus be me o qualiy or his exempion Te seller paid sales ax when he
or she originally bough he iem he individual does no engage in sales aciviy more
han wice during a 12-monh period he propery was no originally purchased or he
purpose o resale he sales do no ake place on commercial premises or anoher loca-
ion where hey are compeing wih oher reailers who are required o collec sales ax
and he sale is no made hrough an aucioneer or oher agen who is required o collec
sales ax2
Review of these state laws
demonstrates
ha i is commonplace or laws and regula-ions o esablish clear guidelines abou wha ype o reail sales conduc should be con-
sidered casual occasional or par o a hobby and wha ype o sales are clearly par o an
esablished business underaken or he primary purpose o profi An updaed regula-
ion defining engaged in he business in he gun sales conex could ollow he approach
aken in many o hese sae laws and regulaions
Options for strengthening the regulatory definition of engaged in
the business
A revised regulaion defining wha i means o be engaged in he business o dealing
in firearms or he purpose o deermining who is required o obain a ederal firearms
license and by exension conduc background checks or all gun sales should ake
a nuanced approach A revised regulaion should consider a ew differen acors o
accuraely gauge wheher individuals selling guns a reail are in ac engaging in sales
o such volume and characer ha hey should be reaed as gun dealers under he law
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 69
6 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
While a sric numerical hreshold based on number o sales would offer a brigh-line
rule ha would provide clear guidance such an approach in isolaion would ail o ake
ino accoun all o he aspecs o reail sales o firearms ha should be par o he deer-
minaion as o wheher an individual should be required o become a licensed dealer A
numerical hreshold should be a componen o a revised regulaion as i is in many sae
sales ax laws and would provide a useul signal o he marke o gun sellers However
jus as many saes consider a number o acors in deermining wheher a seller o goodsshould be required o collec sales ax a revised regulaion relaing o gun sellers should
consider oher acors in addiion o he number o guns sold Te ollowing acors
should be considered in a revised regulaory scheme and he presence o some o hese
acors should creae a rebutable presumpion ha he individual is engaged in he busi-
ness o dealing in firearms
Quantity of sales
One acor o consider in deermining wheher an individual is engaged in he businesso dealing in firearms is he volume o he business during a 12-monh period Tere are
a ew opions or quaniying business volume
bull Number o guns offered or sale
bull Number o guns sold
bull Amoun o money involved in sales ransacions
Character of sales activity
Anoher elemen o a comprehensive approach o assessing wheher someone is
engaged in he business o dealing in firearms is consideraion o oher aspecs o he
gun sales ha indicae he commercial naure o he sales and a subsanial business in
guns Such acors may include
bull Rening ables a gun shows or flea markes
bull Operaing a virual sore online
bull Frequency o sales aciviy
bull Adverising he sale o guns
bull Acceping credi card paymens
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 79
7 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
bull Formal record keeping
bull Paying employees
bull Selling new and unopened guns
bull Selling muliple guns wih he same make and model
In addiion o clariying he ypes o sales ha should be considered sufficienly commer-
cial aciviy o qualiy as engaging in he business a revised regulaion should also pro-
vide clear guidance as o wha ypes o sales should no be considered when deermining
wheher an individual needs o obain an FFL Tese exemp sales should include
bull Any sale made o a licensed dealer or a privae sale or which a background check was
conduced hrough a dealer
bull Liquidaing a privae collecion wih some limiaions
bull Selling guns as par o setling an esae
A new regulaion should also clariy ha so-called fire sales991252meaning sales o all guns
in invenory when a licensed dealer has his or her license revoked991252consiue engaging
in he business and require a ederal firearms license Under curren pracice ollowing a
2006 opinion by he US Deparmen o Jusice dealers whose licenses are revoked are
permited o ranser he invenory rom heir sore o heir personal collecion and con-
inue o sell hose guns as privae sellers regardless o he quaniy o guns sold in his
manner23
Pu simply he Jusice Deparmenrsquos 2006 opinion leter makes no sense andis inconsisen wih he leter and inen o he exising saue Tis reading o he law
is a odds wih he plain language o he saue and creaes a significan risk o public
saey by allowing proven bad acors o coninue selling guns a a high volume wihou
being required o keep any paperwork or conduc background checks A revised regula-
ion should make i clear ha dealers who lose heir licenses should no be permited o
sell off heir invenory as privae sellers hrough fire sales bu raher should be required
o dispose o hese firearms by selling hem o oher licensed dealers24
Conclusion
In his passionae and angry remarks ollowing he Ocober 1 2015 shooing a Umpqua
Communiy College in Roseburg Oregon991252he naionrsquos 45h school shooing his
year991252Presiden Barack Obama made i clear ha he is no willing o wai or Congress
o ake acion o address he loopholes in he naionrsquos curren gun laws which allow
people who pose an increased risk o public saey o have easy access o guns25 Indeed
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 89
8 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
he presiden has been a srong leader on he gun issue since he December 2012 shoo-
ing a Sandy Hook Elemenary School when he ook a number o execuive acions o
address various aspecs o gun violence in he Unied Saes beginning wih 23 acions
announced in January 201326 Te presiden should add o his legacy o leadership
by using his exising execuive auhoriy o amend he regulaory definiion o wha
i means o be engaged in he business o dealing in guns o provide much-needed
guidance o individuals and law enorcemen abou wha ype o sales aciviy requireslicensure by AF Doing so would be a srong sep oward reducing he number o guns
ha change hands every year wihou a background check991252guns ha oo ofen end up
in he wrong hands wih devasaing resuls
Chelsea Parsons is Vice Presiden of Guns and Crime Policy a he Cener for American
Progress Arkadi Gerney is a Senior Vice Presiden a he Cener
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 99
9 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
Endnotes
1 Center for American Progress ldquoBackground Checks for AllGun Salesrdquo (2015) available at httpscdnamericanprogressorgwp-contentuploads201502BackgroundChecks-factsheet3pdf
2 CNN ldquoColorado governor signs gun control mea-suresrdquo March 20 2013 availabl e at httpwwwcnncom20130320uscolorado-gun-control
3 Michele Richinick ldquoGun control wins in Washington StaterdquoMSNBC November 13 2014 available at httpwwwmsn-bccommsnbcgun-control-wins-washington-state54914
4 Reuters ldquoOregon governor signs gun background checksbillrdquo May 12 2015 available at httpwwwreuterscomarticle20150512us-usa-oregon-guncontrol-idUSKBN-0NX0J920150512
5 18 USC sect 922(a)(1)(A)
6 Juliet Eilperin ldquoObama weighs expanding backgroundchecks through executive authorityrdquoThe Washington Post October 8 2015 available at httpswwwwashingtonpostcompoliticsobama-weighs-expanding-background-checks-through-executive-authority201510086bd45e56-6b63-11e5-9bfe-e59f5e244f92_storyhtml
7 18 USC sect 922(a)(1)(A)
8 18 USC sect 921(21)(C)
9 27 CFR sect 48711
10 Alex Yablon ldquo5 Cases That Show How Unlicensed DealersHave Sold Guns By the Hundredsrdquo The Trace October 72015 available at httpwwwthetraceorg201510hillary-clinton-background-check-plan
11 Ibid
12 For additional case examples see Yablon ldquo5 Cases ThatShow How Unlicensed Dealers Have Sold Guns By theHundredsrdquo
13 US Department of Justice ldquoKissimmee Man Pleads Guilty toDealing in Firearms Without a Licenserdquo Press release July 172015 available at httpswwwatfgovnewsprkissimmee-man-pleads-guilty-dealing-firearms-without-license
14 US Department of Justice ldquoIllegal Firearms Dealer AdmitsSelling More Than 200 Guns to Drug Dealers and OtherCriminals in the Camden Areardquo Press release June 23 2015available at httpswwwatfgovnewsprillegal-firearms-dealer-admits-selling-more-200-guns-drug-dealers-and-other-criminals-camden
15 US Department of Justice ldquoManassas Woman Sentenced To 18 Months For Illegally Buying And Selling More Than 31Handguns In 15 Daysrdquo Press release May 3 2013 availableat httpwwwjusticegovusao-edvaprmanassas-woman-sentenced-18-months-illegally-buying-and-selling-more-31-handguns-15
16 According to the Tax Foundation all but five states haveimposed a statewide sales tax See Scott Drenkard andJared Walczak ldquoState and Local Sales Tax Rates in 2015rdquo TaxFoundation April 8 2015 available at httptaxfoundationorgarticlestate-and-local-sales-tax-rates-2015
17 Mo Rev Stat sect 1440101(2) 12 CSR 10-103200
18 Neb Rev Stat sect 77-270124 Reg sect 1-02201
19 For more examples regarding conduct at gun shows seeCity of New York ldquoGun Show Undercover Report on Ill egalSales at Gun Showsrdquo (2009) available at httpwwwnycgovhtmlompdf2009pr442-09_reportpdf
20 Tex Tax Code Ann sect 151304 34 TAC 3316
21 W Va Code sect 11-15-9(a)(7) Reg sect 110-1592 110-15239
22 Fla Stat sect21202(2) Rule 12A-1037
23 Mayors Against Illegal Guns ldquoA Blueprint for Federal Actionon Illegal Gunsrdquo (2009) p 8 available at httpeverytownre-searchorgreportsa-blueprint-for-federal-action-on-illegal-guns
24 For an in-depth discussion of the issue of fire sales see Arka-di Gerney and Chelsea Parsons ldquoRecommendations for Ex-ecutive Action to Combat I llegal Gun Trafficking and ReduceGun Crimerdquo (Washington Center for American Progress2013) pp 9ndash10 available at httpscdnamericanprogressorgwp-contentuploads201306ExecActionGuns-4pdf
25 The White House ldquoStatement by the President on the Shoot-ings at Umpqua Community College Roseburg OregonrdquoPress release October 1 2015 available at httpswwwwhitehousegovthe-press-office20151001statement-president-shootings-umpqua-community-college-rose-burg-oregon
26 The White House ldquoNow is the Time Gun Violence Reduction
Executive Actionsrdquo (2013) available at httpswwwwhite-housegovsitesdefaultfilesdocswh_now_is_the_time_actionspdf
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 29
2 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
In recen weeks he issue o his weakness in he curren regulaory definiion o wha
i means o be engaged in he business o dealing in firearms or purposes o deermin-
ing who is required o become a licensed gun dealer has received naional atenion and
he Obama adminisraion has indicaed ha i is considering opions or amending he
regulaion6 In his issue brie he Cener or American Progress offers opions or how
he regulaion could be amended o provide beter guidance regarding when an indi-
vidual is engaged in he ype and volume o reail gun sales ha warran AF oversighhrough a ederal firearms license CAP also examines he ramework many saes use
o deermine which reail sellers are engaged in business aciviy ha warrans collec-
ion o sae sales ax as a useul analogy or how he aoremenioned engaged-in-he-
business regulaion could be improved CAP proposes a nuanced approach ha would
ake ino accoun a number o acors in deermining wheher an individual is engaged
in he business o dealing in firearms ha includes no only he number o guns sold bu
also oher aspecs o he business such as requency o sales oal proceeds and oher
indicaors o he commercial naure o he sales aciviy Finally CAP concludes ha he
Obama adminisraion can and should rewrie he ederal regulaion ha defines which
gun sellers are required o conduc background checks991252and ha doing so would repre-sen a meaningul bu modes sep oward he goal o ensuring ha all gun sales involve
a background check
Weaknesses in the current regulation
Federal law requires ha any person who is ldquoengage[d] in he businessrdquo o ldquodealing in
firearmsrdquo obain a ederal firearms license rom AF and become a licensed gun dealer7
Such licensed dealers are he only individuals mandaed by ederal law o conduc back-
ground checks prior o compleing any gun sale Te saue goes on o define he ermas ollows
A person who devoes ime atenion and labor o dealing in firearms as a regular
course of rade or business wih he principal objecive of livelihood and profi hrough
he repeiive purchase and resale of firearms bu such erm shall no include a person
who makes occasional sales exchanges or purchases of firearms for he enhancemen
of a personal collecion or for a hobby or who sells all or par of his personal collec-
ion of firearms8
Te curren AF adminisraive regulaion ha provides addiional definiion and
clarificaion regarding a number o sauory provisions relaed o AF ound in secion
47811 o ile 27 o he Code o Federal Regulaions offers an idenical definiion o he
erm and does no provide any urher guidance abou how o assess wha consiues
ldquooccasional salesrdquo or how o deermine wheher a personrsquos reail aciviy is underaken
ldquowih he principal objecive o livelihood and profirdquo9 Tis is precisely he purpose o
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 39
3 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
enacing a body o adminisraive regulaions relaing o ederal legislaion o provide
addiional adminisraive guidance as o how he regulaory agency should inerpre and
apply cerain erms and conceps
Tis vagueness in he curren regulaory definiion has provided he opporuniy or
individuals o ake advanage o he ambiguiy and sell guns a a high volume wihou
becoming licensed and hereore wihou conducing background checks I also makesi difficul or law enorcemen o successully charge someone wih violaing he law by
selling guns wihou a license Former AF agen John Risenhoover in a recen iner-
view explained he challenge o meeing he high burden o proo creaed by he curren
vague regulaory definiion o engaged in he business ldquoYou know how you can bea
any o hese cases Shu up I you donrsquo say anyhing irsquos really hard o proverdquo 10 He also
relayed ha gun sellers are well aware o his challenge or law enorcemen and ofen
knowingly exploi i or profi ldquoI you go o gun shows in he deep Souh or Arizona
here will be people who have boohs where hey go buy new guns rom an FFL and hen
sell hem a a markup under a sign saying lsquono paperwork necessaryrsquordquo said Risenhoover11
Even wih hese challenges here have been some successul recen prosecuions o
individuals who illegally sold guns wihou a license ha provide a limied glimpse ino
he kind o unlicensed gun sales ha pose he bigges concern or law enorcemen12
In July 2015 an individual in Orlando Florida was conviced o selling guns wihou a
license afer he sold 113 guns over a 14-monh period or around $63000 including a
leas one sale o a prohibied purchaser13 In June 2015 an individual in Camden New
Jersey was conviced o selling guns wihou a license afer he admited o selling a
leas 200 handguns over a nine-monh period many o which were sold o an admited
drug dealer who hen resold many o hose guns o oher drug dealers14 In May 2013 a
woman in Manassas Virginia was conviced or violaing his law afer she purchased 31handguns a guns shows across hree consecuive weekends wih he inen o reselling
hem A number o hese guns were laer used in drug-rafficking crimes in Maryland15
State sales tax collection laws and regulations An instructive analogy
As policymakers consider opions or amending he regulaion o provide beter
guidance as o wha i means o be engaged in he business one useul se o laws ha
provides a model is sae laws governing who is required o collec sae sales ax Nearly
every sae imposes a sales ax on goods sold wihin he sae16 In many saes cerain
individuals and eniies are exemp rom he sales ax collecion requiremen i hey
engage in low-volume or inrequen sales ofen described as ldquooccasionalrdquo or ldquocasualrdquo
sales Many o hese sae laws ake a nuanced approach o deermining wha consiues
an occasional or casual sale ha considers no only he raw number o producs sold
bu also oher acors ha assess he overall naure o he business such as requency o
sales aciviy characer o producs being sold and amoun o money earned hrough
he sales ransacions By and large hese sae laws and regulaions defining wha kinds
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 49
4 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
o sellers should collec axes are more houghul precise and enorceable han he
curren vague ederal regulaion ha defines ldquoengaged in he businessrdquo as relaing o gun
sales Examinaion o some o hese sae sauory and regulaory schemes or deermin-
ing which vendors are obligaed o collec sales ax provides useul guidance or redraf-
ing he engaged-in-he-business gun regulaion
Missouri
In Missouri he ollowing acors are o be considered in deermining wheher an
individual is engaged in business and hereore required o collec sales ax wheher he
individual adverises or oherwise holds him or hersel ou as being a reailer requency
and duraion o sales aciviy and he naure o he marke or he good or service being
sold Missouri law and regulaion also provide ha regardless o he above acors any
individuals who earn more han $3000 in a calendar year hrough heir sales aciviy
will no be considered o be engaging in occasional or isolaed sales17
Nebraska
Nebraska exemps rom he sales ax collecion requiremen individuals who are only
engaged in occasional sales Sales aciviy only qualifies as an occasional sale i al l o he
ollowing condiions are me Te sales ake place a he personrsquos residence or via an
online aucion sie sales occur no more han hree days during he calendar year nei-
her he individual nor any members o he individualrsquos household operaes a business
in which similar producs are sold he propery being sold was originally purchased or
he individualrsquos personal use and he propery being sold is no subjec o any oher lawha would require ha he sale no be considered occasional Nebraska also provides
ha any sale ha is aided by an agen or aucioneer any sale in which he seller did no
pay sales ax when he or she firs purchased he iem and any sale o propery ha was
originally purchased or he purpose o resale do no quali y as occasional sales18 I
Nebraskarsquos rules were applied o guns mos o he aciviy o unlicensed sellers operaing
ables a gun shows would clearly be beyond he occasional-sale excepion Such unli-
censed gun show sellers commonly sell new-in-he-box guns ren space a he show o
sell he guns operae a more han hree shows a year and operae ouside heir homes19
Texas
exas also provides an occasional-sales excepion o is sales ax collecion requiremen
Sae law and regulaion provide ha here are wo caegories o qualiying sales Firs
an individual who engages in only one or wo sales a reail during a 12-monh period
and does no hold him or hersel ou o be engaged in he business o selling such iems
a reail qualifies or he occasional-sales excepion Second he sales are considered o
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 59
5 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
be occasional sales i he ollowing acors are me Te propery was originally pur-
chased by he individual or a amily member or personal use he individual does no
have a permi o be a seller or reailer as required by sae law he individual does no
use a broker or aucioneer o aciliae he sale and he oal proceeds rom he sale in a
calendar year do no exceed $300020
West Virginia
Individuals who engage in wha are deemed ldquoisolaed ransacionsrdquo are no required o
collec sales ax in Wes Virginia Sales qualiy as isolaed ransacions i he seller is no
in he business o regularly selling he ype o produc being sold and he seller does no
engage in more han our isolaed ransacions in a 12-monh period21
Florida
Florida law exemps occasional sales o goods rom sales ax collecion Te ollowing
condiions mus be me o qualiy or his exempion Te seller paid sales ax when he
or she originally bough he iem he individual does no engage in sales aciviy more
han wice during a 12-monh period he propery was no originally purchased or he
purpose o resale he sales do no ake place on commercial premises or anoher loca-
ion where hey are compeing wih oher reailers who are required o collec sales ax
and he sale is no made hrough an aucioneer or oher agen who is required o collec
sales ax2
Review of these state laws
demonstrates
ha i is commonplace or laws and regula-ions o esablish clear guidelines abou wha ype o reail sales conduc should be con-
sidered casual occasional or par o a hobby and wha ype o sales are clearly par o an
esablished business underaken or he primary purpose o profi An updaed regula-
ion defining engaged in he business in he gun sales conex could ollow he approach
aken in many o hese sae laws and regulaions
Options for strengthening the regulatory definition of engaged in
the business
A revised regulaion defining wha i means o be engaged in he business o dealing
in firearms or he purpose o deermining who is required o obain a ederal firearms
license and by exension conduc background checks or all gun sales should ake
a nuanced approach A revised regulaion should consider a ew differen acors o
accuraely gauge wheher individuals selling guns a reail are in ac engaging in sales
o such volume and characer ha hey should be reaed as gun dealers under he law
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 69
6 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
While a sric numerical hreshold based on number o sales would offer a brigh-line
rule ha would provide clear guidance such an approach in isolaion would ail o ake
ino accoun all o he aspecs o reail sales o firearms ha should be par o he deer-
minaion as o wheher an individual should be required o become a licensed dealer A
numerical hreshold should be a componen o a revised regulaion as i is in many sae
sales ax laws and would provide a useul signal o he marke o gun sellers However
jus as many saes consider a number o acors in deermining wheher a seller o goodsshould be required o collec sales ax a revised regulaion relaing o gun sellers should
consider oher acors in addiion o he number o guns sold Te ollowing acors
should be considered in a revised regulaory scheme and he presence o some o hese
acors should creae a rebutable presumpion ha he individual is engaged in he busi-
ness o dealing in firearms
Quantity of sales
One acor o consider in deermining wheher an individual is engaged in he businesso dealing in firearms is he volume o he business during a 12-monh period Tere are
a ew opions or quaniying business volume
bull Number o guns offered or sale
bull Number o guns sold
bull Amoun o money involved in sales ransacions
Character of sales activity
Anoher elemen o a comprehensive approach o assessing wheher someone is
engaged in he business o dealing in firearms is consideraion o oher aspecs o he
gun sales ha indicae he commercial naure o he sales and a subsanial business in
guns Such acors may include
bull Rening ables a gun shows or flea markes
bull Operaing a virual sore online
bull Frequency o sales aciviy
bull Adverising he sale o guns
bull Acceping credi card paymens
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 79
7 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
bull Formal record keeping
bull Paying employees
bull Selling new and unopened guns
bull Selling muliple guns wih he same make and model
In addiion o clariying he ypes o sales ha should be considered sufficienly commer-
cial aciviy o qualiy as engaging in he business a revised regulaion should also pro-
vide clear guidance as o wha ypes o sales should no be considered when deermining
wheher an individual needs o obain an FFL Tese exemp sales should include
bull Any sale made o a licensed dealer or a privae sale or which a background check was
conduced hrough a dealer
bull Liquidaing a privae collecion wih some limiaions
bull Selling guns as par o setling an esae
A new regulaion should also clariy ha so-called fire sales991252meaning sales o all guns
in invenory when a licensed dealer has his or her license revoked991252consiue engaging
in he business and require a ederal firearms license Under curren pracice ollowing a
2006 opinion by he US Deparmen o Jusice dealers whose licenses are revoked are
permited o ranser he invenory rom heir sore o heir personal collecion and con-
inue o sell hose guns as privae sellers regardless o he quaniy o guns sold in his
manner23
Pu simply he Jusice Deparmenrsquos 2006 opinion leter makes no sense andis inconsisen wih he leter and inen o he exising saue Tis reading o he law
is a odds wih he plain language o he saue and creaes a significan risk o public
saey by allowing proven bad acors o coninue selling guns a a high volume wihou
being required o keep any paperwork or conduc background checks A revised regula-
ion should make i clear ha dealers who lose heir licenses should no be permited o
sell off heir invenory as privae sellers hrough fire sales bu raher should be required
o dispose o hese firearms by selling hem o oher licensed dealers24
Conclusion
In his passionae and angry remarks ollowing he Ocober 1 2015 shooing a Umpqua
Communiy College in Roseburg Oregon991252he naionrsquos 45h school shooing his
year991252Presiden Barack Obama made i clear ha he is no willing o wai or Congress
o ake acion o address he loopholes in he naionrsquos curren gun laws which allow
people who pose an increased risk o public saey o have easy access o guns25 Indeed
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
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8 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
he presiden has been a srong leader on he gun issue since he December 2012 shoo-
ing a Sandy Hook Elemenary School when he ook a number o execuive acions o
address various aspecs o gun violence in he Unied Saes beginning wih 23 acions
announced in January 201326 Te presiden should add o his legacy o leadership
by using his exising execuive auhoriy o amend he regulaory definiion o wha
i means o be engaged in he business o dealing in guns o provide much-needed
guidance o individuals and law enorcemen abou wha ype o sales aciviy requireslicensure by AF Doing so would be a srong sep oward reducing he number o guns
ha change hands every year wihou a background check991252guns ha oo ofen end up
in he wrong hands wih devasaing resuls
Chelsea Parsons is Vice Presiden of Guns and Crime Policy a he Cener for American
Progress Arkadi Gerney is a Senior Vice Presiden a he Cener
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 99
9 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
Endnotes
1 Center for American Progress ldquoBackground Checks for AllGun Salesrdquo (2015) available at httpscdnamericanprogressorgwp-contentuploads201502BackgroundChecks-factsheet3pdf
2 CNN ldquoColorado governor signs gun control mea-suresrdquo March 20 2013 availabl e at httpwwwcnncom20130320uscolorado-gun-control
3 Michele Richinick ldquoGun control wins in Washington StaterdquoMSNBC November 13 2014 available at httpwwwmsn-bccommsnbcgun-control-wins-washington-state54914
4 Reuters ldquoOregon governor signs gun background checksbillrdquo May 12 2015 available at httpwwwreuterscomarticle20150512us-usa-oregon-guncontrol-idUSKBN-0NX0J920150512
5 18 USC sect 922(a)(1)(A)
6 Juliet Eilperin ldquoObama weighs expanding backgroundchecks through executive authorityrdquoThe Washington Post October 8 2015 available at httpswwwwashingtonpostcompoliticsobama-weighs-expanding-background-checks-through-executive-authority201510086bd45e56-6b63-11e5-9bfe-e59f5e244f92_storyhtml
7 18 USC sect 922(a)(1)(A)
8 18 USC sect 921(21)(C)
9 27 CFR sect 48711
10 Alex Yablon ldquo5 Cases That Show How Unlicensed DealersHave Sold Guns By the Hundredsrdquo The Trace October 72015 available at httpwwwthetraceorg201510hillary-clinton-background-check-plan
11 Ibid
12 For additional case examples see Yablon ldquo5 Cases ThatShow How Unlicensed Dealers Have Sold Guns By theHundredsrdquo
13 US Department of Justice ldquoKissimmee Man Pleads Guilty toDealing in Firearms Without a Licenserdquo Press release July 172015 available at httpswwwatfgovnewsprkissimmee-man-pleads-guilty-dealing-firearms-without-license
14 US Department of Justice ldquoIllegal Firearms Dealer AdmitsSelling More Than 200 Guns to Drug Dealers and OtherCriminals in the Camden Areardquo Press release June 23 2015available at httpswwwatfgovnewsprillegal-firearms-dealer-admits-selling-more-200-guns-drug-dealers-and-other-criminals-camden
15 US Department of Justice ldquoManassas Woman Sentenced To 18 Months For Illegally Buying And Selling More Than 31Handguns In 15 Daysrdquo Press release May 3 2013 availableat httpwwwjusticegovusao-edvaprmanassas-woman-sentenced-18-months-illegally-buying-and-selling-more-31-handguns-15
16 According to the Tax Foundation all but five states haveimposed a statewide sales tax See Scott Drenkard andJared Walczak ldquoState and Local Sales Tax Rates in 2015rdquo TaxFoundation April 8 2015 available at httptaxfoundationorgarticlestate-and-local-sales-tax-rates-2015
17 Mo Rev Stat sect 1440101(2) 12 CSR 10-103200
18 Neb Rev Stat sect 77-270124 Reg sect 1-02201
19 For more examples regarding conduct at gun shows seeCity of New York ldquoGun Show Undercover Report on Ill egalSales at Gun Showsrdquo (2009) available at httpwwwnycgovhtmlompdf2009pr442-09_reportpdf
20 Tex Tax Code Ann sect 151304 34 TAC 3316
21 W Va Code sect 11-15-9(a)(7) Reg sect 110-1592 110-15239
22 Fla Stat sect21202(2) Rule 12A-1037
23 Mayors Against Illegal Guns ldquoA Blueprint for Federal Actionon Illegal Gunsrdquo (2009) p 8 available at httpeverytownre-searchorgreportsa-blueprint-for-federal-action-on-illegal-guns
24 For an in-depth discussion of the issue of fire sales see Arka-di Gerney and Chelsea Parsons ldquoRecommendations for Ex-ecutive Action to Combat I llegal Gun Trafficking and ReduceGun Crimerdquo (Washington Center for American Progress2013) pp 9ndash10 available at httpscdnamericanprogressorgwp-contentuploads201306ExecActionGuns-4pdf
25 The White House ldquoStatement by the President on the Shoot-ings at Umpqua Community College Roseburg OregonrdquoPress release October 1 2015 available at httpswwwwhitehousegovthe-press-office20151001statement-president-shootings-umpqua-community-college-rose-burg-oregon
26 The White House ldquoNow is the Time Gun Violence Reduction
Executive Actionsrdquo (2013) available at httpswwwwhite-housegovsitesdefaultfilesdocswh_now_is_the_time_actionspdf
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
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3 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
enacing a body o adminisraive regulaions relaing o ederal legislaion o provide
addiional adminisraive guidance as o how he regulaory agency should inerpre and
apply cerain erms and conceps
Tis vagueness in he curren regulaory definiion has provided he opporuniy or
individuals o ake advanage o he ambiguiy and sell guns a a high volume wihou
becoming licensed and hereore wihou conducing background checks I also makesi difficul or law enorcemen o successully charge someone wih violaing he law by
selling guns wihou a license Former AF agen John Risenhoover in a recen iner-
view explained he challenge o meeing he high burden o proo creaed by he curren
vague regulaory definiion o engaged in he business ldquoYou know how you can bea
any o hese cases Shu up I you donrsquo say anyhing irsquos really hard o proverdquo 10 He also
relayed ha gun sellers are well aware o his challenge or law enorcemen and ofen
knowingly exploi i or profi ldquoI you go o gun shows in he deep Souh or Arizona
here will be people who have boohs where hey go buy new guns rom an FFL and hen
sell hem a a markup under a sign saying lsquono paperwork necessaryrsquordquo said Risenhoover11
Even wih hese challenges here have been some successul recen prosecuions o
individuals who illegally sold guns wihou a license ha provide a limied glimpse ino
he kind o unlicensed gun sales ha pose he bigges concern or law enorcemen12
In July 2015 an individual in Orlando Florida was conviced o selling guns wihou a
license afer he sold 113 guns over a 14-monh period or around $63000 including a
leas one sale o a prohibied purchaser13 In June 2015 an individual in Camden New
Jersey was conviced o selling guns wihou a license afer he admited o selling a
leas 200 handguns over a nine-monh period many o which were sold o an admited
drug dealer who hen resold many o hose guns o oher drug dealers14 In May 2013 a
woman in Manassas Virginia was conviced or violaing his law afer she purchased 31handguns a guns shows across hree consecuive weekends wih he inen o reselling
hem A number o hese guns were laer used in drug-rafficking crimes in Maryland15
State sales tax collection laws and regulations An instructive analogy
As policymakers consider opions or amending he regulaion o provide beter
guidance as o wha i means o be engaged in he business one useul se o laws ha
provides a model is sae laws governing who is required o collec sae sales ax Nearly
every sae imposes a sales ax on goods sold wihin he sae16 In many saes cerain
individuals and eniies are exemp rom he sales ax collecion requiremen i hey
engage in low-volume or inrequen sales ofen described as ldquooccasionalrdquo or ldquocasualrdquo
sales Many o hese sae laws ake a nuanced approach o deermining wha consiues
an occasional or casual sale ha considers no only he raw number o producs sold
bu also oher acors ha assess he overall naure o he business such as requency o
sales aciviy characer o producs being sold and amoun o money earned hrough
he sales ransacions By and large hese sae laws and regulaions defining wha kinds
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 49
4 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
o sellers should collec axes are more houghul precise and enorceable han he
curren vague ederal regulaion ha defines ldquoengaged in he businessrdquo as relaing o gun
sales Examinaion o some o hese sae sauory and regulaory schemes or deermin-
ing which vendors are obligaed o collec sales ax provides useul guidance or redraf-
ing he engaged-in-he-business gun regulaion
Missouri
In Missouri he ollowing acors are o be considered in deermining wheher an
individual is engaged in business and hereore required o collec sales ax wheher he
individual adverises or oherwise holds him or hersel ou as being a reailer requency
and duraion o sales aciviy and he naure o he marke or he good or service being
sold Missouri law and regulaion also provide ha regardless o he above acors any
individuals who earn more han $3000 in a calendar year hrough heir sales aciviy
will no be considered o be engaging in occasional or isolaed sales17
Nebraska
Nebraska exemps rom he sales ax collecion requiremen individuals who are only
engaged in occasional sales Sales aciviy only qualifies as an occasional sale i al l o he
ollowing condiions are me Te sales ake place a he personrsquos residence or via an
online aucion sie sales occur no more han hree days during he calendar year nei-
her he individual nor any members o he individualrsquos household operaes a business
in which similar producs are sold he propery being sold was originally purchased or
he individualrsquos personal use and he propery being sold is no subjec o any oher lawha would require ha he sale no be considered occasional Nebraska also provides
ha any sale ha is aided by an agen or aucioneer any sale in which he seller did no
pay sales ax when he or she firs purchased he iem and any sale o propery ha was
originally purchased or he purpose o resale do no quali y as occasional sales18 I
Nebraskarsquos rules were applied o guns mos o he aciviy o unlicensed sellers operaing
ables a gun shows would clearly be beyond he occasional-sale excepion Such unli-
censed gun show sellers commonly sell new-in-he-box guns ren space a he show o
sell he guns operae a more han hree shows a year and operae ouside heir homes19
Texas
exas also provides an occasional-sales excepion o is sales ax collecion requiremen
Sae law and regulaion provide ha here are wo caegories o qualiying sales Firs
an individual who engages in only one or wo sales a reail during a 12-monh period
and does no hold him or hersel ou o be engaged in he business o selling such iems
a reail qualifies or he occasional-sales excepion Second he sales are considered o
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 59
5 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
be occasional sales i he ollowing acors are me Te propery was originally pur-
chased by he individual or a amily member or personal use he individual does no
have a permi o be a seller or reailer as required by sae law he individual does no
use a broker or aucioneer o aciliae he sale and he oal proceeds rom he sale in a
calendar year do no exceed $300020
West Virginia
Individuals who engage in wha are deemed ldquoisolaed ransacionsrdquo are no required o
collec sales ax in Wes Virginia Sales qualiy as isolaed ransacions i he seller is no
in he business o regularly selling he ype o produc being sold and he seller does no
engage in more han our isolaed ransacions in a 12-monh period21
Florida
Florida law exemps occasional sales o goods rom sales ax collecion Te ollowing
condiions mus be me o qualiy or his exempion Te seller paid sales ax when he
or she originally bough he iem he individual does no engage in sales aciviy more
han wice during a 12-monh period he propery was no originally purchased or he
purpose o resale he sales do no ake place on commercial premises or anoher loca-
ion where hey are compeing wih oher reailers who are required o collec sales ax
and he sale is no made hrough an aucioneer or oher agen who is required o collec
sales ax2
Review of these state laws
demonstrates
ha i is commonplace or laws and regula-ions o esablish clear guidelines abou wha ype o reail sales conduc should be con-
sidered casual occasional or par o a hobby and wha ype o sales are clearly par o an
esablished business underaken or he primary purpose o profi An updaed regula-
ion defining engaged in he business in he gun sales conex could ollow he approach
aken in many o hese sae laws and regulaions
Options for strengthening the regulatory definition of engaged in
the business
A revised regulaion defining wha i means o be engaged in he business o dealing
in firearms or he purpose o deermining who is required o obain a ederal firearms
license and by exension conduc background checks or all gun sales should ake
a nuanced approach A revised regulaion should consider a ew differen acors o
accuraely gauge wheher individuals selling guns a reail are in ac engaging in sales
o such volume and characer ha hey should be reaed as gun dealers under he law
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 69
6 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
While a sric numerical hreshold based on number o sales would offer a brigh-line
rule ha would provide clear guidance such an approach in isolaion would ail o ake
ino accoun all o he aspecs o reail sales o firearms ha should be par o he deer-
minaion as o wheher an individual should be required o become a licensed dealer A
numerical hreshold should be a componen o a revised regulaion as i is in many sae
sales ax laws and would provide a useul signal o he marke o gun sellers However
jus as many saes consider a number o acors in deermining wheher a seller o goodsshould be required o collec sales ax a revised regulaion relaing o gun sellers should
consider oher acors in addiion o he number o guns sold Te ollowing acors
should be considered in a revised regulaory scheme and he presence o some o hese
acors should creae a rebutable presumpion ha he individual is engaged in he busi-
ness o dealing in firearms
Quantity of sales
One acor o consider in deermining wheher an individual is engaged in he businesso dealing in firearms is he volume o he business during a 12-monh period Tere are
a ew opions or quaniying business volume
bull Number o guns offered or sale
bull Number o guns sold
bull Amoun o money involved in sales ransacions
Character of sales activity
Anoher elemen o a comprehensive approach o assessing wheher someone is
engaged in he business o dealing in firearms is consideraion o oher aspecs o he
gun sales ha indicae he commercial naure o he sales and a subsanial business in
guns Such acors may include
bull Rening ables a gun shows or flea markes
bull Operaing a virual sore online
bull Frequency o sales aciviy
bull Adverising he sale o guns
bull Acceping credi card paymens
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 79
7 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
bull Formal record keeping
bull Paying employees
bull Selling new and unopened guns
bull Selling muliple guns wih he same make and model
In addiion o clariying he ypes o sales ha should be considered sufficienly commer-
cial aciviy o qualiy as engaging in he business a revised regulaion should also pro-
vide clear guidance as o wha ypes o sales should no be considered when deermining
wheher an individual needs o obain an FFL Tese exemp sales should include
bull Any sale made o a licensed dealer or a privae sale or which a background check was
conduced hrough a dealer
bull Liquidaing a privae collecion wih some limiaions
bull Selling guns as par o setling an esae
A new regulaion should also clariy ha so-called fire sales991252meaning sales o all guns
in invenory when a licensed dealer has his or her license revoked991252consiue engaging
in he business and require a ederal firearms license Under curren pracice ollowing a
2006 opinion by he US Deparmen o Jusice dealers whose licenses are revoked are
permited o ranser he invenory rom heir sore o heir personal collecion and con-
inue o sell hose guns as privae sellers regardless o he quaniy o guns sold in his
manner23
Pu simply he Jusice Deparmenrsquos 2006 opinion leter makes no sense andis inconsisen wih he leter and inen o he exising saue Tis reading o he law
is a odds wih he plain language o he saue and creaes a significan risk o public
saey by allowing proven bad acors o coninue selling guns a a high volume wihou
being required o keep any paperwork or conduc background checks A revised regula-
ion should make i clear ha dealers who lose heir licenses should no be permited o
sell off heir invenory as privae sellers hrough fire sales bu raher should be required
o dispose o hese firearms by selling hem o oher licensed dealers24
Conclusion
In his passionae and angry remarks ollowing he Ocober 1 2015 shooing a Umpqua
Communiy College in Roseburg Oregon991252he naionrsquos 45h school shooing his
year991252Presiden Barack Obama made i clear ha he is no willing o wai or Congress
o ake acion o address he loopholes in he naionrsquos curren gun laws which allow
people who pose an increased risk o public saey o have easy access o guns25 Indeed
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 89
8 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
he presiden has been a srong leader on he gun issue since he December 2012 shoo-
ing a Sandy Hook Elemenary School when he ook a number o execuive acions o
address various aspecs o gun violence in he Unied Saes beginning wih 23 acions
announced in January 201326 Te presiden should add o his legacy o leadership
by using his exising execuive auhoriy o amend he regulaory definiion o wha
i means o be engaged in he business o dealing in guns o provide much-needed
guidance o individuals and law enorcemen abou wha ype o sales aciviy requireslicensure by AF Doing so would be a srong sep oward reducing he number o guns
ha change hands every year wihou a background check991252guns ha oo ofen end up
in he wrong hands wih devasaing resuls
Chelsea Parsons is Vice Presiden of Guns and Crime Policy a he Cener for American
Progress Arkadi Gerney is a Senior Vice Presiden a he Cener
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 99
9 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
Endnotes
1 Center for American Progress ldquoBackground Checks for AllGun Salesrdquo (2015) available at httpscdnamericanprogressorgwp-contentuploads201502BackgroundChecks-factsheet3pdf
2 CNN ldquoColorado governor signs gun control mea-suresrdquo March 20 2013 availabl e at httpwwwcnncom20130320uscolorado-gun-control
3 Michele Richinick ldquoGun control wins in Washington StaterdquoMSNBC November 13 2014 available at httpwwwmsn-bccommsnbcgun-control-wins-washington-state54914
4 Reuters ldquoOregon governor signs gun background checksbillrdquo May 12 2015 available at httpwwwreuterscomarticle20150512us-usa-oregon-guncontrol-idUSKBN-0NX0J920150512
5 18 USC sect 922(a)(1)(A)
6 Juliet Eilperin ldquoObama weighs expanding backgroundchecks through executive authorityrdquoThe Washington Post October 8 2015 available at httpswwwwashingtonpostcompoliticsobama-weighs-expanding-background-checks-through-executive-authority201510086bd45e56-6b63-11e5-9bfe-e59f5e244f92_storyhtml
7 18 USC sect 922(a)(1)(A)
8 18 USC sect 921(21)(C)
9 27 CFR sect 48711
10 Alex Yablon ldquo5 Cases That Show How Unlicensed DealersHave Sold Guns By the Hundredsrdquo The Trace October 72015 available at httpwwwthetraceorg201510hillary-clinton-background-check-plan
11 Ibid
12 For additional case examples see Yablon ldquo5 Cases ThatShow How Unlicensed Dealers Have Sold Guns By theHundredsrdquo
13 US Department of Justice ldquoKissimmee Man Pleads Guilty toDealing in Firearms Without a Licenserdquo Press release July 172015 available at httpswwwatfgovnewsprkissimmee-man-pleads-guilty-dealing-firearms-without-license
14 US Department of Justice ldquoIllegal Firearms Dealer AdmitsSelling More Than 200 Guns to Drug Dealers and OtherCriminals in the Camden Areardquo Press release June 23 2015available at httpswwwatfgovnewsprillegal-firearms-dealer-admits-selling-more-200-guns-drug-dealers-and-other-criminals-camden
15 US Department of Justice ldquoManassas Woman Sentenced To 18 Months For Illegally Buying And Selling More Than 31Handguns In 15 Daysrdquo Press release May 3 2013 availableat httpwwwjusticegovusao-edvaprmanassas-woman-sentenced-18-months-illegally-buying-and-selling-more-31-handguns-15
16 According to the Tax Foundation all but five states haveimposed a statewide sales tax See Scott Drenkard andJared Walczak ldquoState and Local Sales Tax Rates in 2015rdquo TaxFoundation April 8 2015 available at httptaxfoundationorgarticlestate-and-local-sales-tax-rates-2015
17 Mo Rev Stat sect 1440101(2) 12 CSR 10-103200
18 Neb Rev Stat sect 77-270124 Reg sect 1-02201
19 For more examples regarding conduct at gun shows seeCity of New York ldquoGun Show Undercover Report on Ill egalSales at Gun Showsrdquo (2009) available at httpwwwnycgovhtmlompdf2009pr442-09_reportpdf
20 Tex Tax Code Ann sect 151304 34 TAC 3316
21 W Va Code sect 11-15-9(a)(7) Reg sect 110-1592 110-15239
22 Fla Stat sect21202(2) Rule 12A-1037
23 Mayors Against Illegal Guns ldquoA Blueprint for Federal Actionon Illegal Gunsrdquo (2009) p 8 available at httpeverytownre-searchorgreportsa-blueprint-for-federal-action-on-illegal-guns
24 For an in-depth discussion of the issue of fire sales see Arka-di Gerney and Chelsea Parsons ldquoRecommendations for Ex-ecutive Action to Combat I llegal Gun Trafficking and ReduceGun Crimerdquo (Washington Center for American Progress2013) pp 9ndash10 available at httpscdnamericanprogressorgwp-contentuploads201306ExecActionGuns-4pdf
25 The White House ldquoStatement by the President on the Shoot-ings at Umpqua Community College Roseburg OregonrdquoPress release October 1 2015 available at httpswwwwhitehousegovthe-press-office20151001statement-president-shootings-umpqua-community-college-rose-burg-oregon
26 The White House ldquoNow is the Time Gun Violence Reduction
Executive Actionsrdquo (2013) available at httpswwwwhite-housegovsitesdefaultfilesdocswh_now_is_the_time_actionspdf
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 49
4 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
o sellers should collec axes are more houghul precise and enorceable han he
curren vague ederal regulaion ha defines ldquoengaged in he businessrdquo as relaing o gun
sales Examinaion o some o hese sae sauory and regulaory schemes or deermin-
ing which vendors are obligaed o collec sales ax provides useul guidance or redraf-
ing he engaged-in-he-business gun regulaion
Missouri
In Missouri he ollowing acors are o be considered in deermining wheher an
individual is engaged in business and hereore required o collec sales ax wheher he
individual adverises or oherwise holds him or hersel ou as being a reailer requency
and duraion o sales aciviy and he naure o he marke or he good or service being
sold Missouri law and regulaion also provide ha regardless o he above acors any
individuals who earn more han $3000 in a calendar year hrough heir sales aciviy
will no be considered o be engaging in occasional or isolaed sales17
Nebraska
Nebraska exemps rom he sales ax collecion requiremen individuals who are only
engaged in occasional sales Sales aciviy only qualifies as an occasional sale i al l o he
ollowing condiions are me Te sales ake place a he personrsquos residence or via an
online aucion sie sales occur no more han hree days during he calendar year nei-
her he individual nor any members o he individualrsquos household operaes a business
in which similar producs are sold he propery being sold was originally purchased or
he individualrsquos personal use and he propery being sold is no subjec o any oher lawha would require ha he sale no be considered occasional Nebraska also provides
ha any sale ha is aided by an agen or aucioneer any sale in which he seller did no
pay sales ax when he or she firs purchased he iem and any sale o propery ha was
originally purchased or he purpose o resale do no quali y as occasional sales18 I
Nebraskarsquos rules were applied o guns mos o he aciviy o unlicensed sellers operaing
ables a gun shows would clearly be beyond he occasional-sale excepion Such unli-
censed gun show sellers commonly sell new-in-he-box guns ren space a he show o
sell he guns operae a more han hree shows a year and operae ouside heir homes19
Texas
exas also provides an occasional-sales excepion o is sales ax collecion requiremen
Sae law and regulaion provide ha here are wo caegories o qualiying sales Firs
an individual who engages in only one or wo sales a reail during a 12-monh period
and does no hold him or hersel ou o be engaged in he business o selling such iems
a reail qualifies or he occasional-sales excepion Second he sales are considered o
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 59
5 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
be occasional sales i he ollowing acors are me Te propery was originally pur-
chased by he individual or a amily member or personal use he individual does no
have a permi o be a seller or reailer as required by sae law he individual does no
use a broker or aucioneer o aciliae he sale and he oal proceeds rom he sale in a
calendar year do no exceed $300020
West Virginia
Individuals who engage in wha are deemed ldquoisolaed ransacionsrdquo are no required o
collec sales ax in Wes Virginia Sales qualiy as isolaed ransacions i he seller is no
in he business o regularly selling he ype o produc being sold and he seller does no
engage in more han our isolaed ransacions in a 12-monh period21
Florida
Florida law exemps occasional sales o goods rom sales ax collecion Te ollowing
condiions mus be me o qualiy or his exempion Te seller paid sales ax when he
or she originally bough he iem he individual does no engage in sales aciviy more
han wice during a 12-monh period he propery was no originally purchased or he
purpose o resale he sales do no ake place on commercial premises or anoher loca-
ion where hey are compeing wih oher reailers who are required o collec sales ax
and he sale is no made hrough an aucioneer or oher agen who is required o collec
sales ax2
Review of these state laws
demonstrates
ha i is commonplace or laws and regula-ions o esablish clear guidelines abou wha ype o reail sales conduc should be con-
sidered casual occasional or par o a hobby and wha ype o sales are clearly par o an
esablished business underaken or he primary purpose o profi An updaed regula-
ion defining engaged in he business in he gun sales conex could ollow he approach
aken in many o hese sae laws and regulaions
Options for strengthening the regulatory definition of engaged in
the business
A revised regulaion defining wha i means o be engaged in he business o dealing
in firearms or he purpose o deermining who is required o obain a ederal firearms
license and by exension conduc background checks or all gun sales should ake
a nuanced approach A revised regulaion should consider a ew differen acors o
accuraely gauge wheher individuals selling guns a reail are in ac engaging in sales
o such volume and characer ha hey should be reaed as gun dealers under he law
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 69
6 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
While a sric numerical hreshold based on number o sales would offer a brigh-line
rule ha would provide clear guidance such an approach in isolaion would ail o ake
ino accoun all o he aspecs o reail sales o firearms ha should be par o he deer-
minaion as o wheher an individual should be required o become a licensed dealer A
numerical hreshold should be a componen o a revised regulaion as i is in many sae
sales ax laws and would provide a useul signal o he marke o gun sellers However
jus as many saes consider a number o acors in deermining wheher a seller o goodsshould be required o collec sales ax a revised regulaion relaing o gun sellers should
consider oher acors in addiion o he number o guns sold Te ollowing acors
should be considered in a revised regulaory scheme and he presence o some o hese
acors should creae a rebutable presumpion ha he individual is engaged in he busi-
ness o dealing in firearms
Quantity of sales
One acor o consider in deermining wheher an individual is engaged in he businesso dealing in firearms is he volume o he business during a 12-monh period Tere are
a ew opions or quaniying business volume
bull Number o guns offered or sale
bull Number o guns sold
bull Amoun o money involved in sales ransacions
Character of sales activity
Anoher elemen o a comprehensive approach o assessing wheher someone is
engaged in he business o dealing in firearms is consideraion o oher aspecs o he
gun sales ha indicae he commercial naure o he sales and a subsanial business in
guns Such acors may include
bull Rening ables a gun shows or flea markes
bull Operaing a virual sore online
bull Frequency o sales aciviy
bull Adverising he sale o guns
bull Acceping credi card paymens
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 79
7 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
bull Formal record keeping
bull Paying employees
bull Selling new and unopened guns
bull Selling muliple guns wih he same make and model
In addiion o clariying he ypes o sales ha should be considered sufficienly commer-
cial aciviy o qualiy as engaging in he business a revised regulaion should also pro-
vide clear guidance as o wha ypes o sales should no be considered when deermining
wheher an individual needs o obain an FFL Tese exemp sales should include
bull Any sale made o a licensed dealer or a privae sale or which a background check was
conduced hrough a dealer
bull Liquidaing a privae collecion wih some limiaions
bull Selling guns as par o setling an esae
A new regulaion should also clariy ha so-called fire sales991252meaning sales o all guns
in invenory when a licensed dealer has his or her license revoked991252consiue engaging
in he business and require a ederal firearms license Under curren pracice ollowing a
2006 opinion by he US Deparmen o Jusice dealers whose licenses are revoked are
permited o ranser he invenory rom heir sore o heir personal collecion and con-
inue o sell hose guns as privae sellers regardless o he quaniy o guns sold in his
manner23
Pu simply he Jusice Deparmenrsquos 2006 opinion leter makes no sense andis inconsisen wih he leter and inen o he exising saue Tis reading o he law
is a odds wih he plain language o he saue and creaes a significan risk o public
saey by allowing proven bad acors o coninue selling guns a a high volume wihou
being required o keep any paperwork or conduc background checks A revised regula-
ion should make i clear ha dealers who lose heir licenses should no be permited o
sell off heir invenory as privae sellers hrough fire sales bu raher should be required
o dispose o hese firearms by selling hem o oher licensed dealers24
Conclusion
In his passionae and angry remarks ollowing he Ocober 1 2015 shooing a Umpqua
Communiy College in Roseburg Oregon991252he naionrsquos 45h school shooing his
year991252Presiden Barack Obama made i clear ha he is no willing o wai or Congress
o ake acion o address he loopholes in he naionrsquos curren gun laws which allow
people who pose an increased risk o public saey o have easy access o guns25 Indeed
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 89
8 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
he presiden has been a srong leader on he gun issue since he December 2012 shoo-
ing a Sandy Hook Elemenary School when he ook a number o execuive acions o
address various aspecs o gun violence in he Unied Saes beginning wih 23 acions
announced in January 201326 Te presiden should add o his legacy o leadership
by using his exising execuive auhoriy o amend he regulaory definiion o wha
i means o be engaged in he business o dealing in guns o provide much-needed
guidance o individuals and law enorcemen abou wha ype o sales aciviy requireslicensure by AF Doing so would be a srong sep oward reducing he number o guns
ha change hands every year wihou a background check991252guns ha oo ofen end up
in he wrong hands wih devasaing resuls
Chelsea Parsons is Vice Presiden of Guns and Crime Policy a he Cener for American
Progress Arkadi Gerney is a Senior Vice Presiden a he Cener
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 99
9 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
Endnotes
1 Center for American Progress ldquoBackground Checks for AllGun Salesrdquo (2015) available at httpscdnamericanprogressorgwp-contentuploads201502BackgroundChecks-factsheet3pdf
2 CNN ldquoColorado governor signs gun control mea-suresrdquo March 20 2013 availabl e at httpwwwcnncom20130320uscolorado-gun-control
3 Michele Richinick ldquoGun control wins in Washington StaterdquoMSNBC November 13 2014 available at httpwwwmsn-bccommsnbcgun-control-wins-washington-state54914
4 Reuters ldquoOregon governor signs gun background checksbillrdquo May 12 2015 available at httpwwwreuterscomarticle20150512us-usa-oregon-guncontrol-idUSKBN-0NX0J920150512
5 18 USC sect 922(a)(1)(A)
6 Juliet Eilperin ldquoObama weighs expanding backgroundchecks through executive authorityrdquoThe Washington Post October 8 2015 available at httpswwwwashingtonpostcompoliticsobama-weighs-expanding-background-checks-through-executive-authority201510086bd45e56-6b63-11e5-9bfe-e59f5e244f92_storyhtml
7 18 USC sect 922(a)(1)(A)
8 18 USC sect 921(21)(C)
9 27 CFR sect 48711
10 Alex Yablon ldquo5 Cases That Show How Unlicensed DealersHave Sold Guns By the Hundredsrdquo The Trace October 72015 available at httpwwwthetraceorg201510hillary-clinton-background-check-plan
11 Ibid
12 For additional case examples see Yablon ldquo5 Cases ThatShow How Unlicensed Dealers Have Sold Guns By theHundredsrdquo
13 US Department of Justice ldquoKissimmee Man Pleads Guilty toDealing in Firearms Without a Licenserdquo Press release July 172015 available at httpswwwatfgovnewsprkissimmee-man-pleads-guilty-dealing-firearms-without-license
14 US Department of Justice ldquoIllegal Firearms Dealer AdmitsSelling More Than 200 Guns to Drug Dealers and OtherCriminals in the Camden Areardquo Press release June 23 2015available at httpswwwatfgovnewsprillegal-firearms-dealer-admits-selling-more-200-guns-drug-dealers-and-other-criminals-camden
15 US Department of Justice ldquoManassas Woman Sentenced To 18 Months For Illegally Buying And Selling More Than 31Handguns In 15 Daysrdquo Press release May 3 2013 availableat httpwwwjusticegovusao-edvaprmanassas-woman-sentenced-18-months-illegally-buying-and-selling-more-31-handguns-15
16 According to the Tax Foundation all but five states haveimposed a statewide sales tax See Scott Drenkard andJared Walczak ldquoState and Local Sales Tax Rates in 2015rdquo TaxFoundation April 8 2015 available at httptaxfoundationorgarticlestate-and-local-sales-tax-rates-2015
17 Mo Rev Stat sect 1440101(2) 12 CSR 10-103200
18 Neb Rev Stat sect 77-270124 Reg sect 1-02201
19 For more examples regarding conduct at gun shows seeCity of New York ldquoGun Show Undercover Report on Ill egalSales at Gun Showsrdquo (2009) available at httpwwwnycgovhtmlompdf2009pr442-09_reportpdf
20 Tex Tax Code Ann sect 151304 34 TAC 3316
21 W Va Code sect 11-15-9(a)(7) Reg sect 110-1592 110-15239
22 Fla Stat sect21202(2) Rule 12A-1037
23 Mayors Against Illegal Guns ldquoA Blueprint for Federal Actionon Illegal Gunsrdquo (2009) p 8 available at httpeverytownre-searchorgreportsa-blueprint-for-federal-action-on-illegal-guns
24 For an in-depth discussion of the issue of fire sales see Arka-di Gerney and Chelsea Parsons ldquoRecommendations for Ex-ecutive Action to Combat I llegal Gun Trafficking and ReduceGun Crimerdquo (Washington Center for American Progress2013) pp 9ndash10 available at httpscdnamericanprogressorgwp-contentuploads201306ExecActionGuns-4pdf
25 The White House ldquoStatement by the President on the Shoot-ings at Umpqua Community College Roseburg OregonrdquoPress release October 1 2015 available at httpswwwwhitehousegovthe-press-office20151001statement-president-shootings-umpqua-community-college-rose-burg-oregon
26 The White House ldquoNow is the Time Gun Violence Reduction
Executive Actionsrdquo (2013) available at httpswwwwhite-housegovsitesdefaultfilesdocswh_now_is_the_time_actionspdf
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 59
5 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
be occasional sales i he ollowing acors are me Te propery was originally pur-
chased by he individual or a amily member or personal use he individual does no
have a permi o be a seller or reailer as required by sae law he individual does no
use a broker or aucioneer o aciliae he sale and he oal proceeds rom he sale in a
calendar year do no exceed $300020
West Virginia
Individuals who engage in wha are deemed ldquoisolaed ransacionsrdquo are no required o
collec sales ax in Wes Virginia Sales qualiy as isolaed ransacions i he seller is no
in he business o regularly selling he ype o produc being sold and he seller does no
engage in more han our isolaed ransacions in a 12-monh period21
Florida
Florida law exemps occasional sales o goods rom sales ax collecion Te ollowing
condiions mus be me o qualiy or his exempion Te seller paid sales ax when he
or she originally bough he iem he individual does no engage in sales aciviy more
han wice during a 12-monh period he propery was no originally purchased or he
purpose o resale he sales do no ake place on commercial premises or anoher loca-
ion where hey are compeing wih oher reailers who are required o collec sales ax
and he sale is no made hrough an aucioneer or oher agen who is required o collec
sales ax2
Review of these state laws
demonstrates
ha i is commonplace or laws and regula-ions o esablish clear guidelines abou wha ype o reail sales conduc should be con-
sidered casual occasional or par o a hobby and wha ype o sales are clearly par o an
esablished business underaken or he primary purpose o profi An updaed regula-
ion defining engaged in he business in he gun sales conex could ollow he approach
aken in many o hese sae laws and regulaions
Options for strengthening the regulatory definition of engaged in
the business
A revised regulaion defining wha i means o be engaged in he business o dealing
in firearms or he purpose o deermining who is required o obain a ederal firearms
license and by exension conduc background checks or all gun sales should ake
a nuanced approach A revised regulaion should consider a ew differen acors o
accuraely gauge wheher individuals selling guns a reail are in ac engaging in sales
o such volume and characer ha hey should be reaed as gun dealers under he law
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 69
6 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
While a sric numerical hreshold based on number o sales would offer a brigh-line
rule ha would provide clear guidance such an approach in isolaion would ail o ake
ino accoun all o he aspecs o reail sales o firearms ha should be par o he deer-
minaion as o wheher an individual should be required o become a licensed dealer A
numerical hreshold should be a componen o a revised regulaion as i is in many sae
sales ax laws and would provide a useul signal o he marke o gun sellers However
jus as many saes consider a number o acors in deermining wheher a seller o goodsshould be required o collec sales ax a revised regulaion relaing o gun sellers should
consider oher acors in addiion o he number o guns sold Te ollowing acors
should be considered in a revised regulaory scheme and he presence o some o hese
acors should creae a rebutable presumpion ha he individual is engaged in he busi-
ness o dealing in firearms
Quantity of sales
One acor o consider in deermining wheher an individual is engaged in he businesso dealing in firearms is he volume o he business during a 12-monh period Tere are
a ew opions or quaniying business volume
bull Number o guns offered or sale
bull Number o guns sold
bull Amoun o money involved in sales ransacions
Character of sales activity
Anoher elemen o a comprehensive approach o assessing wheher someone is
engaged in he business o dealing in firearms is consideraion o oher aspecs o he
gun sales ha indicae he commercial naure o he sales and a subsanial business in
guns Such acors may include
bull Rening ables a gun shows or flea markes
bull Operaing a virual sore online
bull Frequency o sales aciviy
bull Adverising he sale o guns
bull Acceping credi card paymens
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 79
7 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
bull Formal record keeping
bull Paying employees
bull Selling new and unopened guns
bull Selling muliple guns wih he same make and model
In addiion o clariying he ypes o sales ha should be considered sufficienly commer-
cial aciviy o qualiy as engaging in he business a revised regulaion should also pro-
vide clear guidance as o wha ypes o sales should no be considered when deermining
wheher an individual needs o obain an FFL Tese exemp sales should include
bull Any sale made o a licensed dealer or a privae sale or which a background check was
conduced hrough a dealer
bull Liquidaing a privae collecion wih some limiaions
bull Selling guns as par o setling an esae
A new regulaion should also clariy ha so-called fire sales991252meaning sales o all guns
in invenory when a licensed dealer has his or her license revoked991252consiue engaging
in he business and require a ederal firearms license Under curren pracice ollowing a
2006 opinion by he US Deparmen o Jusice dealers whose licenses are revoked are
permited o ranser he invenory rom heir sore o heir personal collecion and con-
inue o sell hose guns as privae sellers regardless o he quaniy o guns sold in his
manner23
Pu simply he Jusice Deparmenrsquos 2006 opinion leter makes no sense andis inconsisen wih he leter and inen o he exising saue Tis reading o he law
is a odds wih he plain language o he saue and creaes a significan risk o public
saey by allowing proven bad acors o coninue selling guns a a high volume wihou
being required o keep any paperwork or conduc background checks A revised regula-
ion should make i clear ha dealers who lose heir licenses should no be permited o
sell off heir invenory as privae sellers hrough fire sales bu raher should be required
o dispose o hese firearms by selling hem o oher licensed dealers24
Conclusion
In his passionae and angry remarks ollowing he Ocober 1 2015 shooing a Umpqua
Communiy College in Roseburg Oregon991252he naionrsquos 45h school shooing his
year991252Presiden Barack Obama made i clear ha he is no willing o wai or Congress
o ake acion o address he loopholes in he naionrsquos curren gun laws which allow
people who pose an increased risk o public saey o have easy access o guns25 Indeed
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 89
8 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
he presiden has been a srong leader on he gun issue since he December 2012 shoo-
ing a Sandy Hook Elemenary School when he ook a number o execuive acions o
address various aspecs o gun violence in he Unied Saes beginning wih 23 acions
announced in January 201326 Te presiden should add o his legacy o leadership
by using his exising execuive auhoriy o amend he regulaory definiion o wha
i means o be engaged in he business o dealing in guns o provide much-needed
guidance o individuals and law enorcemen abou wha ype o sales aciviy requireslicensure by AF Doing so would be a srong sep oward reducing he number o guns
ha change hands every year wihou a background check991252guns ha oo ofen end up
in he wrong hands wih devasaing resuls
Chelsea Parsons is Vice Presiden of Guns and Crime Policy a he Cener for American
Progress Arkadi Gerney is a Senior Vice Presiden a he Cener
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 99
9 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
Endnotes
1 Center for American Progress ldquoBackground Checks for AllGun Salesrdquo (2015) available at httpscdnamericanprogressorgwp-contentuploads201502BackgroundChecks-factsheet3pdf
2 CNN ldquoColorado governor signs gun control mea-suresrdquo March 20 2013 availabl e at httpwwwcnncom20130320uscolorado-gun-control
3 Michele Richinick ldquoGun control wins in Washington StaterdquoMSNBC November 13 2014 available at httpwwwmsn-bccommsnbcgun-control-wins-washington-state54914
4 Reuters ldquoOregon governor signs gun background checksbillrdquo May 12 2015 available at httpwwwreuterscomarticle20150512us-usa-oregon-guncontrol-idUSKBN-0NX0J920150512
5 18 USC sect 922(a)(1)(A)
6 Juliet Eilperin ldquoObama weighs expanding backgroundchecks through executive authorityrdquoThe Washington Post October 8 2015 available at httpswwwwashingtonpostcompoliticsobama-weighs-expanding-background-checks-through-executive-authority201510086bd45e56-6b63-11e5-9bfe-e59f5e244f92_storyhtml
7 18 USC sect 922(a)(1)(A)
8 18 USC sect 921(21)(C)
9 27 CFR sect 48711
10 Alex Yablon ldquo5 Cases That Show How Unlicensed DealersHave Sold Guns By the Hundredsrdquo The Trace October 72015 available at httpwwwthetraceorg201510hillary-clinton-background-check-plan
11 Ibid
12 For additional case examples see Yablon ldquo5 Cases ThatShow How Unlicensed Dealers Have Sold Guns By theHundredsrdquo
13 US Department of Justice ldquoKissimmee Man Pleads Guilty toDealing in Firearms Without a Licenserdquo Press release July 172015 available at httpswwwatfgovnewsprkissimmee-man-pleads-guilty-dealing-firearms-without-license
14 US Department of Justice ldquoIllegal Firearms Dealer AdmitsSelling More Than 200 Guns to Drug Dealers and OtherCriminals in the Camden Areardquo Press release June 23 2015available at httpswwwatfgovnewsprillegal-firearms-dealer-admits-selling-more-200-guns-drug-dealers-and-other-criminals-camden
15 US Department of Justice ldquoManassas Woman Sentenced To 18 Months For Illegally Buying And Selling More Than 31Handguns In 15 Daysrdquo Press release May 3 2013 availableat httpwwwjusticegovusao-edvaprmanassas-woman-sentenced-18-months-illegally-buying-and-selling-more-31-handguns-15
16 According to the Tax Foundation all but five states haveimposed a statewide sales tax See Scott Drenkard andJared Walczak ldquoState and Local Sales Tax Rates in 2015rdquo TaxFoundation April 8 2015 available at httptaxfoundationorgarticlestate-and-local-sales-tax-rates-2015
17 Mo Rev Stat sect 1440101(2) 12 CSR 10-103200
18 Neb Rev Stat sect 77-270124 Reg sect 1-02201
19 For more examples regarding conduct at gun shows seeCity of New York ldquoGun Show Undercover Report on Ill egalSales at Gun Showsrdquo (2009) available at httpwwwnycgovhtmlompdf2009pr442-09_reportpdf
20 Tex Tax Code Ann sect 151304 34 TAC 3316
21 W Va Code sect 11-15-9(a)(7) Reg sect 110-1592 110-15239
22 Fla Stat sect21202(2) Rule 12A-1037
23 Mayors Against Illegal Guns ldquoA Blueprint for Federal Actionon Illegal Gunsrdquo (2009) p 8 available at httpeverytownre-searchorgreportsa-blueprint-for-federal-action-on-illegal-guns
24 For an in-depth discussion of the issue of fire sales see Arka-di Gerney and Chelsea Parsons ldquoRecommendations for Ex-ecutive Action to Combat I llegal Gun Trafficking and ReduceGun Crimerdquo (Washington Center for American Progress2013) pp 9ndash10 available at httpscdnamericanprogressorgwp-contentuploads201306ExecActionGuns-4pdf
25 The White House ldquoStatement by the President on the Shoot-ings at Umpqua Community College Roseburg OregonrdquoPress release October 1 2015 available at httpswwwwhitehousegovthe-press-office20151001statement-president-shootings-umpqua-community-college-rose-burg-oregon
26 The White House ldquoNow is the Time Gun Violence Reduction
Executive Actionsrdquo (2013) available at httpswwwwhite-housegovsitesdefaultfilesdocswh_now_is_the_time_actionspdf
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 69
6 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
While a sric numerical hreshold based on number o sales would offer a brigh-line
rule ha would provide clear guidance such an approach in isolaion would ail o ake
ino accoun all o he aspecs o reail sales o firearms ha should be par o he deer-
minaion as o wheher an individual should be required o become a licensed dealer A
numerical hreshold should be a componen o a revised regulaion as i is in many sae
sales ax laws and would provide a useul signal o he marke o gun sellers However
jus as many saes consider a number o acors in deermining wheher a seller o goodsshould be required o collec sales ax a revised regulaion relaing o gun sellers should
consider oher acors in addiion o he number o guns sold Te ollowing acors
should be considered in a revised regulaory scheme and he presence o some o hese
acors should creae a rebutable presumpion ha he individual is engaged in he busi-
ness o dealing in firearms
Quantity of sales
One acor o consider in deermining wheher an individual is engaged in he businesso dealing in firearms is he volume o he business during a 12-monh period Tere are
a ew opions or quaniying business volume
bull Number o guns offered or sale
bull Number o guns sold
bull Amoun o money involved in sales ransacions
Character of sales activity
Anoher elemen o a comprehensive approach o assessing wheher someone is
engaged in he business o dealing in firearms is consideraion o oher aspecs o he
gun sales ha indicae he commercial naure o he sales and a subsanial business in
guns Such acors may include
bull Rening ables a gun shows or flea markes
bull Operaing a virual sore online
bull Frequency o sales aciviy
bull Adverising he sale o guns
bull Acceping credi card paymens
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 79
7 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
bull Formal record keeping
bull Paying employees
bull Selling new and unopened guns
bull Selling muliple guns wih he same make and model
In addiion o clariying he ypes o sales ha should be considered sufficienly commer-
cial aciviy o qualiy as engaging in he business a revised regulaion should also pro-
vide clear guidance as o wha ypes o sales should no be considered when deermining
wheher an individual needs o obain an FFL Tese exemp sales should include
bull Any sale made o a licensed dealer or a privae sale or which a background check was
conduced hrough a dealer
bull Liquidaing a privae collecion wih some limiaions
bull Selling guns as par o setling an esae
A new regulaion should also clariy ha so-called fire sales991252meaning sales o all guns
in invenory when a licensed dealer has his or her license revoked991252consiue engaging
in he business and require a ederal firearms license Under curren pracice ollowing a
2006 opinion by he US Deparmen o Jusice dealers whose licenses are revoked are
permited o ranser he invenory rom heir sore o heir personal collecion and con-
inue o sell hose guns as privae sellers regardless o he quaniy o guns sold in his
manner23
Pu simply he Jusice Deparmenrsquos 2006 opinion leter makes no sense andis inconsisen wih he leter and inen o he exising saue Tis reading o he law
is a odds wih he plain language o he saue and creaes a significan risk o public
saey by allowing proven bad acors o coninue selling guns a a high volume wihou
being required o keep any paperwork or conduc background checks A revised regula-
ion should make i clear ha dealers who lose heir licenses should no be permited o
sell off heir invenory as privae sellers hrough fire sales bu raher should be required
o dispose o hese firearms by selling hem o oher licensed dealers24
Conclusion
In his passionae and angry remarks ollowing he Ocober 1 2015 shooing a Umpqua
Communiy College in Roseburg Oregon991252he naionrsquos 45h school shooing his
year991252Presiden Barack Obama made i clear ha he is no willing o wai or Congress
o ake acion o address he loopholes in he naionrsquos curren gun laws which allow
people who pose an increased risk o public saey o have easy access o guns25 Indeed
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 89
8 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
he presiden has been a srong leader on he gun issue since he December 2012 shoo-
ing a Sandy Hook Elemenary School when he ook a number o execuive acions o
address various aspecs o gun violence in he Unied Saes beginning wih 23 acions
announced in January 201326 Te presiden should add o his legacy o leadership
by using his exising execuive auhoriy o amend he regulaory definiion o wha
i means o be engaged in he business o dealing in guns o provide much-needed
guidance o individuals and law enorcemen abou wha ype o sales aciviy requireslicensure by AF Doing so would be a srong sep oward reducing he number o guns
ha change hands every year wihou a background check991252guns ha oo ofen end up
in he wrong hands wih devasaing resuls
Chelsea Parsons is Vice Presiden of Guns and Crime Policy a he Cener for American
Progress Arkadi Gerney is a Senior Vice Presiden a he Cener
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 99
9 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
Endnotes
1 Center for American Progress ldquoBackground Checks for AllGun Salesrdquo (2015) available at httpscdnamericanprogressorgwp-contentuploads201502BackgroundChecks-factsheet3pdf
2 CNN ldquoColorado governor signs gun control mea-suresrdquo March 20 2013 availabl e at httpwwwcnncom20130320uscolorado-gun-control
3 Michele Richinick ldquoGun control wins in Washington StaterdquoMSNBC November 13 2014 available at httpwwwmsn-bccommsnbcgun-control-wins-washington-state54914
4 Reuters ldquoOregon governor signs gun background checksbillrdquo May 12 2015 available at httpwwwreuterscomarticle20150512us-usa-oregon-guncontrol-idUSKBN-0NX0J920150512
5 18 USC sect 922(a)(1)(A)
6 Juliet Eilperin ldquoObama weighs expanding backgroundchecks through executive authorityrdquoThe Washington Post October 8 2015 available at httpswwwwashingtonpostcompoliticsobama-weighs-expanding-background-checks-through-executive-authority201510086bd45e56-6b63-11e5-9bfe-e59f5e244f92_storyhtml
7 18 USC sect 922(a)(1)(A)
8 18 USC sect 921(21)(C)
9 27 CFR sect 48711
10 Alex Yablon ldquo5 Cases That Show How Unlicensed DealersHave Sold Guns By the Hundredsrdquo The Trace October 72015 available at httpwwwthetraceorg201510hillary-clinton-background-check-plan
11 Ibid
12 For additional case examples see Yablon ldquo5 Cases ThatShow How Unlicensed Dealers Have Sold Guns By theHundredsrdquo
13 US Department of Justice ldquoKissimmee Man Pleads Guilty toDealing in Firearms Without a Licenserdquo Press release July 172015 available at httpswwwatfgovnewsprkissimmee-man-pleads-guilty-dealing-firearms-without-license
14 US Department of Justice ldquoIllegal Firearms Dealer AdmitsSelling More Than 200 Guns to Drug Dealers and OtherCriminals in the Camden Areardquo Press release June 23 2015available at httpswwwatfgovnewsprillegal-firearms-dealer-admits-selling-more-200-guns-drug-dealers-and-other-criminals-camden
15 US Department of Justice ldquoManassas Woman Sentenced To 18 Months For Illegally Buying And Selling More Than 31Handguns In 15 Daysrdquo Press release May 3 2013 availableat httpwwwjusticegovusao-edvaprmanassas-woman-sentenced-18-months-illegally-buying-and-selling-more-31-handguns-15
16 According to the Tax Foundation all but five states haveimposed a statewide sales tax See Scott Drenkard andJared Walczak ldquoState and Local Sales Tax Rates in 2015rdquo TaxFoundation April 8 2015 available at httptaxfoundationorgarticlestate-and-local-sales-tax-rates-2015
17 Mo Rev Stat sect 1440101(2) 12 CSR 10-103200
18 Neb Rev Stat sect 77-270124 Reg sect 1-02201
19 For more examples regarding conduct at gun shows seeCity of New York ldquoGun Show Undercover Report on Ill egalSales at Gun Showsrdquo (2009) available at httpwwwnycgovhtmlompdf2009pr442-09_reportpdf
20 Tex Tax Code Ann sect 151304 34 TAC 3316
21 W Va Code sect 11-15-9(a)(7) Reg sect 110-1592 110-15239
22 Fla Stat sect21202(2) Rule 12A-1037
23 Mayors Against Illegal Guns ldquoA Blueprint for Federal Actionon Illegal Gunsrdquo (2009) p 8 available at httpeverytownre-searchorgreportsa-blueprint-for-federal-action-on-illegal-guns
24 For an in-depth discussion of the issue of fire sales see Arka-di Gerney and Chelsea Parsons ldquoRecommendations for Ex-ecutive Action to Combat I llegal Gun Trafficking and ReduceGun Crimerdquo (Washington Center for American Progress2013) pp 9ndash10 available at httpscdnamericanprogressorgwp-contentuploads201306ExecActionGuns-4pdf
25 The White House ldquoStatement by the President on the Shoot-ings at Umpqua Community College Roseburg OregonrdquoPress release October 1 2015 available at httpswwwwhitehousegovthe-press-office20151001statement-president-shootings-umpqua-community-college-rose-burg-oregon
26 The White House ldquoNow is the Time Gun Violence Reduction
Executive Actionsrdquo (2013) available at httpswwwwhite-housegovsitesdefaultfilesdocswh_now_is_the_time_actionspdf
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 79
7 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
bull Formal record keeping
bull Paying employees
bull Selling new and unopened guns
bull Selling muliple guns wih he same make and model
In addiion o clariying he ypes o sales ha should be considered sufficienly commer-
cial aciviy o qualiy as engaging in he business a revised regulaion should also pro-
vide clear guidance as o wha ypes o sales should no be considered when deermining
wheher an individual needs o obain an FFL Tese exemp sales should include
bull Any sale made o a licensed dealer or a privae sale or which a background check was
conduced hrough a dealer
bull Liquidaing a privae collecion wih some limiaions
bull Selling guns as par o setling an esae
A new regulaion should also clariy ha so-called fire sales991252meaning sales o all guns
in invenory when a licensed dealer has his or her license revoked991252consiue engaging
in he business and require a ederal firearms license Under curren pracice ollowing a
2006 opinion by he US Deparmen o Jusice dealers whose licenses are revoked are
permited o ranser he invenory rom heir sore o heir personal collecion and con-
inue o sell hose guns as privae sellers regardless o he quaniy o guns sold in his
manner23
Pu simply he Jusice Deparmenrsquos 2006 opinion leter makes no sense andis inconsisen wih he leter and inen o he exising saue Tis reading o he law
is a odds wih he plain language o he saue and creaes a significan risk o public
saey by allowing proven bad acors o coninue selling guns a a high volume wihou
being required o keep any paperwork or conduc background checks A revised regula-
ion should make i clear ha dealers who lose heir licenses should no be permited o
sell off heir invenory as privae sellers hrough fire sales bu raher should be required
o dispose o hese firearms by selling hem o oher licensed dealers24
Conclusion
In his passionae and angry remarks ollowing he Ocober 1 2015 shooing a Umpqua
Communiy College in Roseburg Oregon991252he naionrsquos 45h school shooing his
year991252Presiden Barack Obama made i clear ha he is no willing o wai or Congress
o ake acion o address he loopholes in he naionrsquos curren gun laws which allow
people who pose an increased risk o public saey o have easy access o guns25 Indeed
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 89
8 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
he presiden has been a srong leader on he gun issue since he December 2012 shoo-
ing a Sandy Hook Elemenary School when he ook a number o execuive acions o
address various aspecs o gun violence in he Unied Saes beginning wih 23 acions
announced in January 201326 Te presiden should add o his legacy o leadership
by using his exising execuive auhoriy o amend he regulaory definiion o wha
i means o be engaged in he business o dealing in guns o provide much-needed
guidance o individuals and law enorcemen abou wha ype o sales aciviy requireslicensure by AF Doing so would be a srong sep oward reducing he number o guns
ha change hands every year wihou a background check991252guns ha oo ofen end up
in he wrong hands wih devasaing resuls
Chelsea Parsons is Vice Presiden of Guns and Crime Policy a he Cener for American
Progress Arkadi Gerney is a Senior Vice Presiden a he Cener
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 99
9 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
Endnotes
1 Center for American Progress ldquoBackground Checks for AllGun Salesrdquo (2015) available at httpscdnamericanprogressorgwp-contentuploads201502BackgroundChecks-factsheet3pdf
2 CNN ldquoColorado governor signs gun control mea-suresrdquo March 20 2013 availabl e at httpwwwcnncom20130320uscolorado-gun-control
3 Michele Richinick ldquoGun control wins in Washington StaterdquoMSNBC November 13 2014 available at httpwwwmsn-bccommsnbcgun-control-wins-washington-state54914
4 Reuters ldquoOregon governor signs gun background checksbillrdquo May 12 2015 available at httpwwwreuterscomarticle20150512us-usa-oregon-guncontrol-idUSKBN-0NX0J920150512
5 18 USC sect 922(a)(1)(A)
6 Juliet Eilperin ldquoObama weighs expanding backgroundchecks through executive authorityrdquoThe Washington Post October 8 2015 available at httpswwwwashingtonpostcompoliticsobama-weighs-expanding-background-checks-through-executive-authority201510086bd45e56-6b63-11e5-9bfe-e59f5e244f92_storyhtml
7 18 USC sect 922(a)(1)(A)
8 18 USC sect 921(21)(C)
9 27 CFR sect 48711
10 Alex Yablon ldquo5 Cases That Show How Unlicensed DealersHave Sold Guns By the Hundredsrdquo The Trace October 72015 available at httpwwwthetraceorg201510hillary-clinton-background-check-plan
11 Ibid
12 For additional case examples see Yablon ldquo5 Cases ThatShow How Unlicensed Dealers Have Sold Guns By theHundredsrdquo
13 US Department of Justice ldquoKissimmee Man Pleads Guilty toDealing in Firearms Without a Licenserdquo Press release July 172015 available at httpswwwatfgovnewsprkissimmee-man-pleads-guilty-dealing-firearms-without-license
14 US Department of Justice ldquoIllegal Firearms Dealer AdmitsSelling More Than 200 Guns to Drug Dealers and OtherCriminals in the Camden Areardquo Press release June 23 2015available at httpswwwatfgovnewsprillegal-firearms-dealer-admits-selling-more-200-guns-drug-dealers-and-other-criminals-camden
15 US Department of Justice ldquoManassas Woman Sentenced To 18 Months For Illegally Buying And Selling More Than 31Handguns In 15 Daysrdquo Press release May 3 2013 availableat httpwwwjusticegovusao-edvaprmanassas-woman-sentenced-18-months-illegally-buying-and-selling-more-31-handguns-15
16 According to the Tax Foundation all but five states haveimposed a statewide sales tax See Scott Drenkard andJared Walczak ldquoState and Local Sales Tax Rates in 2015rdquo TaxFoundation April 8 2015 available at httptaxfoundationorgarticlestate-and-local-sales-tax-rates-2015
17 Mo Rev Stat sect 1440101(2) 12 CSR 10-103200
18 Neb Rev Stat sect 77-270124 Reg sect 1-02201
19 For more examples regarding conduct at gun shows seeCity of New York ldquoGun Show Undercover Report on Ill egalSales at Gun Showsrdquo (2009) available at httpwwwnycgovhtmlompdf2009pr442-09_reportpdf
20 Tex Tax Code Ann sect 151304 34 TAC 3316
21 W Va Code sect 11-15-9(a)(7) Reg sect 110-1592 110-15239
22 Fla Stat sect21202(2) Rule 12A-1037
23 Mayors Against Illegal Guns ldquoA Blueprint for Federal Actionon Illegal Gunsrdquo (2009) p 8 available at httpeverytownre-searchorgreportsa-blueprint-for-federal-action-on-illegal-guns
24 For an in-depth discussion of the issue of fire sales see Arka-di Gerney and Chelsea Parsons ldquoRecommendations for Ex-ecutive Action to Combat I llegal Gun Trafficking and ReduceGun Crimerdquo (Washington Center for American Progress2013) pp 9ndash10 available at httpscdnamericanprogressorgwp-contentuploads201306ExecActionGuns-4pdf
25 The White House ldquoStatement by the President on the Shoot-ings at Umpqua Community College Roseburg OregonrdquoPress release October 1 2015 available at httpswwwwhitehousegovthe-press-office20151001statement-president-shootings-umpqua-community-college-rose-burg-oregon
26 The White House ldquoNow is the Time Gun Violence Reduction
Executive Actionsrdquo (2013) available at httpswwwwhite-housegovsitesdefaultfilesdocswh_now_is_the_time_actionspdf
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 89
8 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
he presiden has been a srong leader on he gun issue since he December 2012 shoo-
ing a Sandy Hook Elemenary School when he ook a number o execuive acions o
address various aspecs o gun violence in he Unied Saes beginning wih 23 acions
announced in January 201326 Te presiden should add o his legacy o leadership
by using his exising execuive auhoriy o amend he regulaory definiion o wha
i means o be engaged in he business o dealing in guns o provide much-needed
guidance o individuals and law enorcemen abou wha ype o sales aciviy requireslicensure by AF Doing so would be a srong sep oward reducing he number o guns
ha change hands every year wihou a background check991252guns ha oo ofen end up
in he wrong hands wih devasaing resuls
Chelsea Parsons is Vice Presiden of Guns and Crime Policy a he Cener for American
Progress Arkadi Gerney is a Senior Vice Presiden a he Cener
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 99
9 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
Endnotes
1 Center for American Progress ldquoBackground Checks for AllGun Salesrdquo (2015) available at httpscdnamericanprogressorgwp-contentuploads201502BackgroundChecks-factsheet3pdf
2 CNN ldquoColorado governor signs gun control mea-suresrdquo March 20 2013 availabl e at httpwwwcnncom20130320uscolorado-gun-control
3 Michele Richinick ldquoGun control wins in Washington StaterdquoMSNBC November 13 2014 available at httpwwwmsn-bccommsnbcgun-control-wins-washington-state54914
4 Reuters ldquoOregon governor signs gun background checksbillrdquo May 12 2015 available at httpwwwreuterscomarticle20150512us-usa-oregon-guncontrol-idUSKBN-0NX0J920150512
5 18 USC sect 922(a)(1)(A)
6 Juliet Eilperin ldquoObama weighs expanding backgroundchecks through executive authorityrdquoThe Washington Post October 8 2015 available at httpswwwwashingtonpostcompoliticsobama-weighs-expanding-background-checks-through-executive-authority201510086bd45e56-6b63-11e5-9bfe-e59f5e244f92_storyhtml
7 18 USC sect 922(a)(1)(A)
8 18 USC sect 921(21)(C)
9 27 CFR sect 48711
10 Alex Yablon ldquo5 Cases That Show How Unlicensed DealersHave Sold Guns By the Hundredsrdquo The Trace October 72015 available at httpwwwthetraceorg201510hillary-clinton-background-check-plan
11 Ibid
12 For additional case examples see Yablon ldquo5 Cases ThatShow How Unlicensed Dealers Have Sold Guns By theHundredsrdquo
13 US Department of Justice ldquoKissimmee Man Pleads Guilty toDealing in Firearms Without a Licenserdquo Press release July 172015 available at httpswwwatfgovnewsprkissimmee-man-pleads-guilty-dealing-firearms-without-license
14 US Department of Justice ldquoIllegal Firearms Dealer AdmitsSelling More Than 200 Guns to Drug Dealers and OtherCriminals in the Camden Areardquo Press release June 23 2015available at httpswwwatfgovnewsprillegal-firearms-dealer-admits-selling-more-200-guns-drug-dealers-and-other-criminals-camden
15 US Department of Justice ldquoManassas Woman Sentenced To 18 Months For Illegally Buying And Selling More Than 31Handguns In 15 Daysrdquo Press release May 3 2013 availableat httpwwwjusticegovusao-edvaprmanassas-woman-sentenced-18-months-illegally-buying-and-selling-more-31-handguns-15
16 According to the Tax Foundation all but five states haveimposed a statewide sales tax See Scott Drenkard andJared Walczak ldquoState and Local Sales Tax Rates in 2015rdquo TaxFoundation April 8 2015 available at httptaxfoundationorgarticlestate-and-local-sales-tax-rates-2015
17 Mo Rev Stat sect 1440101(2) 12 CSR 10-103200
18 Neb Rev Stat sect 77-270124 Reg sect 1-02201
19 For more examples regarding conduct at gun shows seeCity of New York ldquoGun Show Undercover Report on Ill egalSales at Gun Showsrdquo (2009) available at httpwwwnycgovhtmlompdf2009pr442-09_reportpdf
20 Tex Tax Code Ann sect 151304 34 TAC 3316
21 W Va Code sect 11-15-9(a)(7) Reg sect 110-1592 110-15239
22 Fla Stat sect21202(2) Rule 12A-1037
23 Mayors Against Illegal Guns ldquoA Blueprint for Federal Actionon Illegal Gunsrdquo (2009) p 8 available at httpeverytownre-searchorgreportsa-blueprint-for-federal-action-on-illegal-guns
24 For an in-depth discussion of the issue of fire sales see Arka-di Gerney and Chelsea Parsons ldquoRecommendations for Ex-ecutive Action to Combat I llegal Gun Trafficking and ReduceGun Crimerdquo (Washington Center for American Progress2013) pp 9ndash10 available at httpscdnamericanprogressorgwp-contentuploads201306ExecActionGuns-4pdf
25 The White House ldquoStatement by the President on the Shoot-ings at Umpqua Community College Roseburg OregonrdquoPress release October 1 2015 available at httpswwwwhitehousegovthe-press-office20151001statement-president-shootings-umpqua-community-college-rose-burg-oregon
26 The White House ldquoNow is the Time Gun Violence Reduction
Executive Actionsrdquo (2013) available at httpswwwwhite-housegovsitesdefaultfilesdocswh_now_is_the_time_actionspdf
8202019 Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
httpslidepdfcomreaderfullexecutive-action-to-strengthen-background-checks-by-addressing-high-volume 99
9 Center for American Progress | Executive Action to Strengthen Background Checks by Addressing High-Volume Gun Sellers
Endnotes
1 Center for American Progress ldquoBackground Checks for AllGun Salesrdquo (2015) available at httpscdnamericanprogressorgwp-contentuploads201502BackgroundChecks-factsheet3pdf
2 CNN ldquoColorado governor signs gun control mea-suresrdquo March 20 2013 availabl e at httpwwwcnncom20130320uscolorado-gun-control
3 Michele Richinick ldquoGun control wins in Washington StaterdquoMSNBC November 13 2014 available at httpwwwmsn-bccommsnbcgun-control-wins-washington-state54914
4 Reuters ldquoOregon governor signs gun background checksbillrdquo May 12 2015 available at httpwwwreuterscomarticle20150512us-usa-oregon-guncontrol-idUSKBN-0NX0J920150512
5 18 USC sect 922(a)(1)(A)
6 Juliet Eilperin ldquoObama weighs expanding backgroundchecks through executive authorityrdquoThe Washington Post October 8 2015 available at httpswwwwashingtonpostcompoliticsobama-weighs-expanding-background-checks-through-executive-authority201510086bd45e56-6b63-11e5-9bfe-e59f5e244f92_storyhtml
7 18 USC sect 922(a)(1)(A)
8 18 USC sect 921(21)(C)
9 27 CFR sect 48711
10 Alex Yablon ldquo5 Cases That Show How Unlicensed DealersHave Sold Guns By the Hundredsrdquo The Trace October 72015 available at httpwwwthetraceorg201510hillary-clinton-background-check-plan
11 Ibid
12 For additional case examples see Yablon ldquo5 Cases ThatShow How Unlicensed Dealers Have Sold Guns By theHundredsrdquo
13 US Department of Justice ldquoKissimmee Man Pleads Guilty toDealing in Firearms Without a Licenserdquo Press release July 172015 available at httpswwwatfgovnewsprkissimmee-man-pleads-guilty-dealing-firearms-without-license
14 US Department of Justice ldquoIllegal Firearms Dealer AdmitsSelling More Than 200 Guns to Drug Dealers and OtherCriminals in the Camden Areardquo Press release June 23 2015available at httpswwwatfgovnewsprillegal-firearms-dealer-admits-selling-more-200-guns-drug-dealers-and-other-criminals-camden
15 US Department of Justice ldquoManassas Woman Sentenced To 18 Months For Illegally Buying And Selling More Than 31Handguns In 15 Daysrdquo Press release May 3 2013 availableat httpwwwjusticegovusao-edvaprmanassas-woman-sentenced-18-months-illegally-buying-and-selling-more-31-handguns-15
16 According to the Tax Foundation all but five states haveimposed a statewide sales tax See Scott Drenkard andJared Walczak ldquoState and Local Sales Tax Rates in 2015rdquo TaxFoundation April 8 2015 available at httptaxfoundationorgarticlestate-and-local-sales-tax-rates-2015
17 Mo Rev Stat sect 1440101(2) 12 CSR 10-103200
18 Neb Rev Stat sect 77-270124 Reg sect 1-02201
19 For more examples regarding conduct at gun shows seeCity of New York ldquoGun Show Undercover Report on Ill egalSales at Gun Showsrdquo (2009) available at httpwwwnycgovhtmlompdf2009pr442-09_reportpdf
20 Tex Tax Code Ann sect 151304 34 TAC 3316
21 W Va Code sect 11-15-9(a)(7) Reg sect 110-1592 110-15239
22 Fla Stat sect21202(2) Rule 12A-1037
23 Mayors Against Illegal Guns ldquoA Blueprint for Federal Actionon Illegal Gunsrdquo (2009) p 8 available at httpeverytownre-searchorgreportsa-blueprint-for-federal-action-on-illegal-guns
24 For an in-depth discussion of the issue of fire sales see Arka-di Gerney and Chelsea Parsons ldquoRecommendations for Ex-ecutive Action to Combat I llegal Gun Trafficking and ReduceGun Crimerdquo (Washington Center for American Progress2013) pp 9ndash10 available at httpscdnamericanprogressorgwp-contentuploads201306ExecActionGuns-4pdf
25 The White House ldquoStatement by the President on the Shoot-ings at Umpqua Community College Roseburg OregonrdquoPress release October 1 2015 available at httpswwwwhitehousegovthe-press-office20151001statement-president-shootings-umpqua-community-college-rose-burg-oregon
26 The White House ldquoNow is the Time Gun Violence Reduction
Executive Actionsrdquo (2013) available at httpswwwwhite-housegovsitesdefaultfilesdocswh_now_is_the_time_actionspdf