Hi:
In the past I have purchased firearms from out of state though FFL Dealers.
Some FFLs charge sales tax on the purchase price and other FFLs just charge Their FFL fee for receiving the firearm.
Which is correct??

jimmy,

I'm guessing that state statute determines this, and that it will vary from state to state. Here in Ohio, just the transfer fee is charged by the receiving FFL, and, if you bought it from a dealer(as opposed to a private sale), you have to pay Ohio Use Tax the following spring when you send in your returns. I think I have that correct.

Andy

If your state has a sales tax, you are supposed to pay it on all internet purchases. Just call your state dept of revenue and they will be happy to send you the correct forms.

The FFL I use here in Tennessee only charges his FFL fee and for the required background check. I've never been charged sales tax for out of state sales ie...buying off "Gunbroker".

Don

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Laus Deo! <><

Most states have figured this "game" out and Snowman said, they ask you to pay a Use Tax on it at income tax time. They are relying on the user (taxpayer) to be honest, as they really don't have leverage with the retailer. They didn't make the sale.

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War Eagle! '10 BCS & '13 SEC

All I charge is the transfer fee.

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Hold my beer and watch this!

Be happy you don't live in California. IF you can get someone to send a pistol here, the local FFL is required to collect sales tax not only on what you paid for the pistol but ALSO on the cost of shipping !!!

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A closed mouth gathers no foot

FFL asks, "How much did you pay so I can figure tax?"

Honest answer ??

Bekeart

.......+1.......

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Misty

the FFL holder has not sold you anything other than his/her services, so the only tax they need to collect is any tax on the price of their service, and only if your state requires that tax be paid on services. NC currently does not require tax be paid on services.

Sounds as if the FFL has found a new revenue stream.

This is a problem that is coming to a head. So many states are losing tax revenues, not just on guns but on anything purchased from out of state over the internet. In IL this year we had to sign a statement to attach to the state tax form that we did or did not purchase anything from out of state and there is an amount based on your income to include in your state tax if you claim you did purchase something. It won't be long that all states will have a method to collect the state tax and have to send it to your state any time you buy anything.

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H Richard
SWCA1967 SWHF244

Same in Washington. Oh, they call it a use tax, not a sales tax, but it's the same thing. I don't like (but understand) the tax on the price of the item, but the fact that it also applies to the shipping cost is what really burns me. Sure, it's only another 3 bucks or so depending on how much the shipping charge is, but it still rankles. The transfer dealer is required to collect it when you pick up the gun - they want the money right now.

I seem to remember there was a bill before the legislature in Georgia requiring the collection of sales tax by internet sellers shipping to GA. Don't know if it passed or how they would implement and enforce it.

CW

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μολὼν λαβέ

I also reside in Tennessee.
I one FFL that charges only for his fee and the background check and a second FFL charges sales tax plus FFL fee and background check.

Jimmy, there is a new law in TN which went into effect recently regarding purchases made on the internet. It appears the 2nd FFL is simply collecting the tax for the state. I suppose if you keep your reciept you'd be covered, otherwise at the end of the year you're supposed to declare the amount of tax you owe to the state based upon internet sales to companies who are located out of state. I only know this because I got an email from Amazon.com today giving me this information about purchases I made in the last year.

the interesting thing is how this will impact prices on things like guns and ammo where the savings is in not having to pay sales tax. I think for once the legislature and the business community are both on the same side for collecting taxes.

I've never paid tax on any internet gun purchase.........yet.

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Wayne
Torn & Frayed

I hate shopping in New Hampshire

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Doesn't hasta call me Johnson

Jimmy I use a pawn shop here in Murfreesboro and they never charge sales tax. I think this may change shortly. I know Amazon is building a warehouse outside of Murfreesboro and have agreed to charge sales tax to Tennessee residents sometime in the near future so I bet it will on everything before long. Don

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"Don't worry be happy"

I bought a little from Amazon last year and have not got an e-mail. "Yet" I also buy some on Ebay. I am not doubting what you say but I haven't heard of this law. I just heard that Amazon was going to charge tax sometime in the future. Don

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"Don't worry be happy"

Hmm, I don't pay sales tax at all, for any purchase unless I am visiting another state. I love that part about Oregon.

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G21C,Shield.40,LCP

Here's the deal.

Amazon.com sending tax notices to Tennessee customers | timesfreepress.com

I've gone through this several times and there is some confusion on the part of the ffl's. I don't know the full answer but this is what I understand and what has happened to me on several transactions in eastern Washington.

1) You pay sales tax on the value.
2) If it is a straight trade (and documented as such) you don't have to pays sales tax.
3) I've only had to pays sales tax on the sales price not on fees.
4) If you do not have a receipt, the dealer is supposed to charge based on fair market value (my dealers uses gunbroker and averages)

Taxation with out representation resulted in a rather violent change of government about 250 years ago.

I believe in paying taxes on goods and services where I derive a potential benefit of services from the taxing "authority", but where there is is no potential service rendered by the taxing "authority", well, they can pound sand. And that sums up an internet/interstate transaction IMNSHO.

The state can send me all the Use Tax forms they wish. I bet they will come in handy in January lighting the fire in my fireplace.

It depends upon the state you reside. They can only collect a sales tax if purchased within the state. Several states have implemented a use tax on out of state purchases. If you got charge a use tax at one FFL then your state has a use tax and your state should have instructions on how to pay it.

But both are different taxes.

Here in WA, use tax has been existence for awhile but recently enforced on firearms. If you bought a vehicle in Oregon (which doesn't have a sales tax), the moment you drove over the border to Washington, you had to pay a use tax on it. That law has been here since I moved here ('81), or people from WA would just buy cars from Oregon to bypass paying sales tax.

When I still lived in Indiana one of my friends was in the Navy in Okinawa. He bought a Honda 250 and when he came home the state wanted a statement of origin and bill of sale to charge him sales and excise tax. He said one of the best times he had was handing all to the clerk everything in Japanese including YEN.

Sales tax is part of a business operation. In United States,more states are passing or thinking about regulations to ban the so-called tax zapper programs. The said programs, some say cost the states billions a year in tax revenue, create a second set of books when a thumb drive is placed to the cash register. The second set of numbers used for tax reasons, under-reports the salary of the business. Same discussion here:States cracking down on tax zapper programs

My last purchase from eBay had a sales tax added. This is the frist time. Tennessee must have added a new law.

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Regards,
Windjammer

I'm pretty sure that any of TN's new laws () don't go into effect until July 1.
I just bought something on eBay and no sales tax was added....
It will be if you bought it from a *business* that is located in TN though.

There maybe some other states that pay it to TN though --- I'll scratch them from my list if and when I find out which they are

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In dog years I'm dead.

Sales tax is a state tax, and may also have a local county or city component. Any sales made in a specific locality must assess the tax. Each state determines what to do with interstate sales, and soon most if not all states will have formed a coalition to require collection of sales tax on out of state sales and forward that to the state to which the merchandise was shipped. It's coming.

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H Richard
SWCA1967 SWHF244