FFL Transfers and Sales Tax

[jimmyj]

Hi:
For the members that purchase firearms on line and have the purchase shipped to a FFL:
In addition to the FFL charging a fee, does the FFL also charge sales tax on your item that was purchased on line ?

 

[gdnagle]

Not here just $10.00 transfer fee nothing else.

 

[vytoland]

I only pay the FFL fee , no other charges.....

 

[ditrina]

Not in Florida that I know of..

 

[GaryS]

I've done two transfers through the same FFL. Both were for AR lowers, and he didn't charge sales tax. I have heard stories about other FFLs that have charged the sales tax. Somehow, I'm a bit skeptical that they turned that over to the state as unless the transferee told them how much they paid for the firearm, they'd have no way of knowing what to base the sales tax on. Unless they have similar firearms in stock and based it on that.

I'm less than convinced that they are required to do that, and would avoid a dealer that told me he had to charge sales tax.

That's just me.

 

[Oldiron]

Jimmy, I think the sales tax is a scam to grab some of your money. I don't order on-line but I had a friend bring one over from Ga. to an AGCA show. I checked with one of the dealers close to my table and he wanted $25 plus sales tax on the gun's value (his figure not what I was paying). Told him thanks but went to another dealer and got the transfer for $20.
Larry

 

[handejector]

Some states require dealers to charge sales tax.
Therefore, some dealers require that I furnish them an invoice copy along with my FFL when I ship the gun.

 

[Kanewpadle]

Washington State does. The transfer itself isn't taxed but the sale price of the gun is. It applies to all guns transferred into the state.

 

[Dennis The B]

The buyer is responsible for remitting the use tax to the state, assuming the purchase is from out of state. For a purchase within a state, the user is required to remit sales tax to the state. The state, however, may require that an FFL collect the tax, instead. It all depends on how a particular state's tax laws are written. In many cases the FFL dealer becomes the tax collector for the state, and reports those amounts on his/her taxable sales.

In many states, the revenue department relies on an honor system, that is, the end user reports any taxable purchases for which no sales or use tax was collected. However, states are free to write tax laws as benefits them the greatest.

 

[2152hq]

It would be 'use tax' that the buyer would be liable for. Wether it would becollected by the FFL at time of the transfer or be payable by the buyer directly to the taxing juristiction can differ by State and local collection area.

Buying outside of the juristiction you are living and having the item shipped can avoid 'sales tax' being collected by the seller. But 'use tax' is due from the buyer at the current local rate(s) in his/her location.

It's hard to trackdown w/internet buyers. The gov't can't make businesses in other States collect sales tax from other states purchases and send it to them (though a few do).
The 'use tax' is generally relied upon to get the tax money, but it doesn't work out too well except in the case of gov't controlled item,,like automobiles & firearms.
DMV uses the value on the receipt if it falls within what their guide says.If not,,they assign the value,you pay the tax on it.
A few states have put pressure on the FFLs to collect sales/use tax on transferes. You can't get your FFL 01 renewed if you don't have a State Tax Licence.

Tax people want their money. Their records go waaay back too.

 

[ChattanoogaPhil]

Not required to collect tax here. Sales tax is pretty steep. Some guys order online just to avoid the tax. One gun shop around here got tired of acting like a transfer service for Buds Gun Shop and raised his fees to the point where most go elsewhere except those of us who have been long time customers and actually buy things from him. It's not uncommon for some poor unsuspecting soul to be looking at guns and say the tripwire phrase "I can get this gun for less online" and then get tossed out the door.

 

[Philadelphia Patriot]

Via King Shooters Suppy in Pennsylvania

Firearm purchase from store: $8.00 fee + $0.48 tax = $8.48 total
Private in store transfer: $23.58 + $1.42 tax = $25.00
Private purchase, ffl used, internet auction: $37.74 + $2.26 tax = $40.00

 

[BaldEagle1313]

Washington State does. The transfer itself isn't taxed but the sale price of the gun is. It applies to all guns transferred into the state.

Plus, in Washington they charge tax (well, they don't call it a tax, it's a "use fee") on the shipping cost as well. Tax the item, don't like it but that's the way it is. But tax the shipping cost??? That's just a money grab because they can.

Some states require dealers to charge sales tax.
Therefore, some dealers require that I furnish them an invoice copy along with my FFL when I ship the gun.

I've had private sellers not enclose an invoice, so I'm logged in online at my FFL showing them what the auction price was. Come on, someone paid you hundreds of dollars for an item and it's too much trouble to include a receipt?

 

[1950jcb]

Onerous tax in WA

Kanewpaddle and BE mentioned WA's "use tax" and as they said, it's based on the total price-including shipping. If the revenue stream supported shooting ranges, hunter safety training or some other gun related cause, I wouldn't mind as much-but it just drops into the black hole of the general fund.

 

[DuckDodgers]

Washington State does. The transfer itself isn't taxed but the sale price of the gun is. It applies to all guns transferred into the state.

I never understood that. It used to be that if you purchased online from a company that had a physical presence in the state they you had to pay sales tax other wise you did not. They sure tap into our pockets here in good ol' WA.

 

[DuckDodgers]

Kanewpaddle mentioned WA's "use tax" and it's based on the total price-including shipping. If the revenue stream supported shooting ranges, hunter safety training or some other gun related cause, I wouldn't mind as much-but it just drops into the black hole of the general fund.

Yup just like all the other sport related fees , like the Discover Pass. I would not mind if the money was used wisely, but alas.... Not even going to get on that soap box.

 

[LVSteve]

I never understood that. It used to be that if you purchased online from a company that had a physical presence in the state they you had to pay sales tax other wise you did not. They sure tap into our pockets here in good ol' WA.

Given that most "sales" taxes are in fact "sales and use" taxes, all WA are doing is enforcing the law.

We have the same wording here, but the poor old state of Nevada does not have the resources to go after us in the same way. Besides which, so MUCH stuff has to come from out of state it would be seen as a burden on the average worker, who would then want more money, and most of them work for casinos. The casinos don't want to pay more so strict enforcement doesn't happen.

 

[BaldEagle1313]

In WA it started because years and years ago people would go across the border to Oregon, which has no sales tax, to buy cars, motorhomes, and other big ticket items. They realized they were missing out on a ton of tax revenue. They started cracking down, especially in the border counties, on vehicles with Oregon plates that were always in Washington, going so far as to ask people to inform on their neighbors whose cars, boats, motorhomes, etc were parked in their Washington driveways. So they call it a use tax, saying that if you are using it in Washington you will pay the equivalent of the Washington sales tax on it. It has since expanded to include a multitude of things, including firearms.

 

[snake803]

Some states require dealers to charge sales tax.
Therefore, some dealers require that I furnish them an invoice copy along with my FFL when I ship the gun.

That's the way they do it in WA state.. Not so in SC... You're supposed to report and pay with your state income taxes...on the honor system...
JIM........

 

[JJEH]

No sales tax on labor in OK.