Here's the funny part - this isn't the first time this prop has been misrepresented as something from Elm Street. Mark Shostrom first sold the prop in 1989 and it later wound up inside a Planet Hollywood in Dallas, Texas. The prop-eatery had it listed as the snake creature from Nightmare on Elm Street III: Dream Warriors, which is also kind of crazy considering how big that Freddy-snake creature was in the film.
As always, be careful out there when you're buying Phantasm props. There are a lot of obvious fakes on the market and, it would seem, some legitimate props mislabeled as being from other films. Thanks to Mark for the tip!
(Photo courtesy Mark Shostrom)