Tax-Exempt/Tax-Free Sales of Firearms and Ammunition

Requirements for Tax-Exempt/Tax-Free Sales. Under certain conditions, a manufacturer, producer or importer may sell firearms and shells and cartridges (ammunition) tax-exempt or tax-free. In general, the manufacturer, producer or importer will be liable for all taxes, including interest and applicable penalties, if all the requirements of the tax-exempt or tax-free sale are not met.