Selling Firearms at Auction
Thursday, April 30th, 2009From the John D Schultz Auctioneer Blog
As President of the Minnesota State Auctioneers Association, I receive a myriad of questions on an assortment of topics. Some of the questions are fairly generic, and would apply to most auctioneers. For example, this week I received the following email:
” I have always heard that we were legal to sell firearms if they are part of an estate or if the auction that we are working is a 1 party auction.
Our local sheriff called me and said that this is incorrect…any firearm that are sold at auction need to be sold under a FFL.
I called the St.Paul office of Tobacco, Firearms, etc. and visited with a gal named Mary. She again, told me that I was legal to sell as I mentioned above.
I also received a call from another auctioneer in our area - he had heard that the sheriff had visited with me…this auctioneer said that in Minnesota - you are legal to sell any firearm without running them thru an FFL. This auctioneer sells a lot of firearms..”
When I answer a question for a member, I like to provide the sources I used for my research. I believe this empowers the member to learn. It also encourages them to share the information with others, as it’s just not well I talked to this person and they said it was okay. Much of this style comes from working at the law office where I cite every thing I write.
My answer to the question: Selling Firearms at Auction: Before I answer your questions, I’ll point you to the sources I used for to obtain the answers.
The ATF provides the Federal Firearms Regulations Reference Guide online. A copy can be found here: http://www.atf.gov/pub/fire-explo_pub/2005/p53004/index.htm
Within the guide, there is a section entitled “Rulings, Procedures, and Industry Circulars” within that section is ruling 96-2 Activities of auctioneers requiring a dealer’s license. This ruling discusses at length what an auctioneer can and can’t do without a license. I’ve attached a pdf of the rulings. Ruling 96-2 is found on page 15 and 16 of the pdf, and page 133 and 134 of the document. The text of the document is informative, and somewhat lengthy. However, it finds the following:
Held: Persons who conduct estate-type auctions at which the auctioneer assists the estate in selling the estate’s firearms, and the firearms are possessed and transferred by the estate, do not require a Federal firearms license.
Held further: Persons who regularly conduct consignment-type auctions, for example, held every 1-2 months, where the auctioneer takes possession of the firearms pursuant to a consignment contract giving the auctioneer the exclusive right and authority to sell the firearms at a location, time and date to be selected by the auctioneer and providing for a commission to be paid upon sale are required to obtain a license as a dealer in firearms pursuant to 18 U.S.C. § 923(a).
Hopefully this information helps. Your local sheriff appears to have provided you with incorrect information. There are instances when an auctioneer can sell firearms without a license or involving a licensee. I trust you’ll find this information helpful.
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