ncy54
Member
If a business (such as Land's End) has an office, outlet, warehouse, etc. in your state, they are obliged to collect sales tax, even when mail ordered from another location.
A question for FFLs: Do you charge sales tax on out of state transfers?
- Thread starter stonehorses
- Start date
If a business (such as Land's End) has an office, outlet, warehouse, etc. in your state, they are obliged to collect sales tax, even when mail ordered from another location.
oldRoger
US Veteran
Maybe this Monday I can get by his shop and spend some time pulling out what the Revenue dudes say and how he submits the $ to them (does he distinguish between use and sales tax?).
But I hope to never think about this again after that.
Bob;
I would not think of suggesting that you inflict this sort of pain upon yourself, on the other hand I would appreciate hearing any opinion you might form.
In the end I suppose what counts is how forceful the Tax people get with the FFL holder. I certainly wouldn't want my guy to jeopardize his business over a few $$. I don't really think his margins would justify a protracted legal fight with Tallahassee.
Roger.
But I hope to never think about this again after that.
Bob;
I would not think of suggesting that you inflict this sort of pain upon yourself, on the other hand I would appreciate hearing any opinion you might form.
In the end I suppose what counts is how forceful the Tax people get with the FFL holder. I certainly wouldn't want my guy to jeopardize his business over a few $$. I don't really think his margins would justify a protracted legal fight with Tallahassee.
Roger.
straightshooter1
US Veteran
I don't know if Land's End has any stores in Florida now or not.
A few years ago, Sears started carrying their products. Haven't been in a Sears in a long time, so don't know what is going on with that product line.
As to my FFL, I can't recall how he came in contact with our friends at the Revenue Department. Was it an audit, did they just stop by, or, God forbid, did he call them and ask if he should collect tax
.
However it came about, it was forceful enough to cause him to do it. I like to stop and look, so I'll find out the details. Maybe Monday-at least that's my plan.
Bob
A few years ago, Sears started carrying their products. Haven't been in a Sears in a long time, so don't know what is going on with that product line.
As to my FFL, I can't recall how he came in contact with our friends at the Revenue Department. Was it an audit, did they just stop by, or, God forbid, did he call them and ask if he should collect tax
.However it came about, it was forceful enough to cause him to do it. I like to stop and look, so I'll find out the details. Maybe Monday-at least that's my plan.
Bob
straightshooter1
US Veteran
Here's the answer from my FFL.
Started with an audit in 1991 (pre Quill decision). At the audit, it was discovered he was accepting shipments from out of state FFLS or individuals and transferring them to residents of Florida without collecting the sales tax.
He paid the tax, penalties and interest. He, thereafter, collected tax.
Later, not sure what year, but after the Quill decision, a customer contacted the Department of Revenue and allegedly was told no tax should be collected.
Rather than simply taking the customer's word for the conversation with the Revenue folks (and, I guess, giving the gun to the cistomer without colecting the tax), the FFL called Revenue himself and talked at some length with a supervisor.
He was told that if the was transferring a firearm received from another state he HAD to collect the tax. And, he does.
He also has to pay income tax on the sale. He transfered a firearm worth, say 500 bucks. He collected the 7% tax so his transaction shows he sold a gun for $500.
He probably could back out such sales and not pay the income tax, but he said he does so few it is not worth the possibility of a tax hassle with the Feds and/or State.
Bob
Started with an audit in 1991 (pre Quill decision). At the audit, it was discovered he was accepting shipments from out of state FFLS or individuals and transferring them to residents of Florida without collecting the sales tax.
He paid the tax, penalties and interest. He, thereafter, collected tax.
Later, not sure what year, but after the Quill decision, a customer contacted the Department of Revenue and allegedly was told no tax should be collected.
Rather than simply taking the customer's word for the conversation with the Revenue folks (and, I guess, giving the gun to the cistomer without colecting the tax), the FFL called Revenue himself and talked at some length with a supervisor.
He was told that if the was transferring a firearm received from another state he HAD to collect the tax. And, he does.
He also has to pay income tax on the sale. He transfered a firearm worth, say 500 bucks. He collected the 7% tax so his transaction shows he sold a gun for $500.
He probably could back out such sales and not pay the income tax, but he said he does so few it is not worth the possibility of a tax hassle with the Feds and/or State.
Bob
oldRoger
US Veteran
Bob;
Thank you for the additional information.
The one FFL holder up here that collects use tax has a very similar story. Her run-in with the state was some years ago.
In your guy's case, it would seem to me that adding the value of the total sales to his gross is extreme since he did not handle the $500. He only should have to book as sales the transfer fee and phone charge if he has one, and if these services are not exempt from the sales tax.
If he collects the use tax of $35, I am at a loss as to how he should book it. I would bet his book keeper doesn't know either.
Roger.
Thank you for the additional information.
The one FFL holder up here that collects use tax has a very similar story. Her run-in with the state was some years ago.
In your guy's case, it would seem to me that adding the value of the total sales to his gross is extreme since he did not handle the $500. He only should have to book as sales the transfer fee and phone charge if he has one, and if these services are not exempt from the sales tax.
If he collects the use tax of $35, I am at a loss as to how he should book it. I would bet his book keeper doesn't know either.
Roger.
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