Taxing question on dealer transfers?????

kimberkid

I was wondering, when I buy a firearm from an out of state dealer through GunBroker (or any other site) is my dealer supposed to charge me sales tax even though he had nothing to do with the sale other than handle the transfer?There is no tax when I buy anything else via the web or mail order as long as its from out of state and that store doesn't have a retail outlet in my state ... just one of those things that makes me go "Hummmmm"Any of you FFL Dealers help me out here?

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GUN CONTROL: If you're not outraged, you're not paying attention!kimberkid@gunbroker.zzn.com

bfair

I don't know how it works in all states. But when I have a gun shipped my FFL holder in Fla. I always tell the shipper not to but a sales receipt in with the gun. Therefore the FFL holder in Fla does not have to collect sales tax as there is no record of what the selling price was. Most out of state seller's I have requested not to put a sales receipt in the shipment are already aware of this.

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Home of the Blue Angels, P'colaSemper Paratus

dsr611

I did not pay taxes when I bought my pistol off of an auction site . It was FFL to FFL transfer(from Texas to Bama). The only thing I had to pay the receiving FFL was for the transfer($20).[This message has been edited by dsr611 (edited 10-15-2001).][This message has been edited by dsr611 (edited 10-15-2001).]

bsebast

Kimberkid-- Look at it this way. There are 2 separate transactions taking place when you buy a gun: (1) the sale, and (2) the transfer. Your state and the sales tax people are concerned with the sale. They want to collect tax if it is due. The government, and ATF are concerned with the transfer. They are interested in the proper paperwork being filled out and keeping track of who takes posession of the gun. Your FFL holder is not selling the gun, only transferring it. From his business standpoint, there is no sale. If there is no sale, then it would seem obvious there is no sales tax.If he tries to collect tax, I suggest you call your State Comptroller's office and ask for clarification.

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Do not let any unwholesome talk come out of your mouths, but only what is helpful for building others up according to their needs, that it may benefit those who listen. Ephesians 4:29 bsebast@airmail.net

Evil ATF

I just recently got my FFL, but on the last firearms transfer I did to my local dealer, he asked what I paid for the item. I got a good deal and told him so. I said "Yeah, I got her for $600! Can you believe it!?"He agreed that I got a good deal and I wrote him a check for $20, the usual for a transfer from the Internet. He said "Uh, Evil, I gotta tax you on the pruchase too."Uh uh. Hell no. There is currently a moratorium on ALL Internet sales. Unless the item is sold to a resident of the same state, you DO NOT have to pay sales tax on any Internet purchases. In some states, you don't even have to pay the sales tax even if you do live in the same state as the seller. Unless you bought the firearm in-state, find a new dealer who is either honest or knows the current tax laws.

kimberkid

Thanks for all responces!What prompted the question is that my dealer and friend has never charged me tax (or transfer fee) for handling my purchases (about a dozen) before as we've been friend for many many years. He was recently audited by the BATF, and that was the only "discrepency" they found after 3 days and pouring over his books for the 3rd time. However they didn't call the IRS about it.If I owe tax I'll pay it but since he didn't sell it to me, it didn't make sense to me that he should collect sales tax ... maybe he should start charging me something for the transfer so he can "account" for the transfer.I think I'll check with the State of Kansas for clarification, I'll post the outcome when I get an answer from them!

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GUN CONTROL: If you're not outraged, you're not paying attention!kimberkid@gunbroker.zzn.com

mudge

The dealer who is accepting the transfer for you SHOULD NOT be collecting sales tax. If you paid the seller for the gun, it's up to him whether to charge you sales tax or not. They usually do 'cause he's gonna' have to pay it one way or another when he reports his receipts to the state.Let me give you a f'rinstance...I've purchased guns from my buddy who has an FFL. He's in VA, I'm a resident of WV. My buddy collects the sales tax for VA because that's where the actual SALE was made. He then transfers the gun to a WV FFL holder. Since the WV FFL holder has accomplished only a paperwork transaction and not a "sale", he cannot charge me a "sales" tax.I suspect that any transferring dealer who charges a sales tax is putting it in his pocket. Since there is no actual "sale" to which the tax can be traced, who'll know?Not on the books. In his pocket. Sheer profit. Any transferring dealer that asks you how much you paid for the gun, so he can collect sales tax on it...tell him $1.00Mudge

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I can't come to work today. The voices said, STAY HOME AND CLEAN THE GUNS![This message has been edited by mudge (edited 10-16-2001).][This message has been edited by mudge (edited 10-16-2001).]