Ban Gun Shows...Loose State Revenue
Some states like Texas, are considering banning Gun Shows. The elected officials in these states need to remember one primary area in their decision. Gun shows bring in millions of revenue dollars for any state they are in via state sales tax. We all recognize that these are not the best economic times. This is especially trure when it comes to state revenue. Some states have to reduce their services becaus of lack of funds. Some counties and muncipalities have to reduce their police, fire, and other important services. The sales tax revenue generated by Gun Shows is very important to these entities. How much can they generate? Lets go over some examples.
Gun Shows have different sizes. Small Gun Shows have about 50 to 100 tables. Middle size gun shows have about 150 to 300 tables. Large gun shows have 500+ tables. The majority of vendors in Gun Shows are gun dealers. The majority of these gun dealers sell new guns. They also sell consignment, and used guns. The average new firerarm sells for $500 to $750. Some go up to thousands of dollars. However, lets just deal with the average cost of a new firearm. Going back to the size of the various gun shows, all of their vendors contribute to the sales tax revenue for the state the Gun Show has their show. If 75% of Gun Show vendors are firearm dealers, and they average about 50 new guns sold per show with an average retail price of $550, this would amount to $27,500.00. If the sales tax in that state were 7 %, the sales tax generated by this one vendor is $1,650.00. In a small gun show that figure is increased by 20 vendors to
$33,000. A medium size Gun Show would generate around $33,000 X 50 vendors = $1,650.000.00. A large size Gun Show would generate about $33,333.00 X 100 vendors = $3,300,000.00. These figures are low because I have not factored in the other vendors who also generage state sales tax.
State officials should consider the ramification of banning Gun Shows. The loss of sales tax revenue could damage their state, county, or muncipality in these bad economic times.