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Taxing question on dealer transfers?????

kimberkidkimberkid Member Posts: 8,858 ✭✭✭
edited October 2001 in Ask the Experts
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?
GUN CONTROL: If you're not outraged, you're not paying attention!kimberkid@gunbroker.zzn.com
If you really desire something, you'll find a way ?
? otherwise, you'll find an excuse.
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Comments

  • AntiqueDrAntiqueDr Member Posts: 691 ✭✭✭✭
    edited November -1
    Agreed. However, many states have passed legislation requiring sales tax to be collected on internet purchases due to the volume of sales tax revenue being "lost." Check with your state's comptroller.
    We buy, sell and trade quality guns and scopes!Ask us about Shepherd Scopes!Visit our website at www.ApaxEnterprises.com
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  • kimberkidkimberkid Member Posts: 8,858 ✭✭✭
    edited November -1
    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!
    GUN CONTROL: If you're not outraged, you're not paying attention!kimberkid@gunbroker.zzn.com
    If you really desire something, you'll find a way ?
    ? otherwise, you'll find an excuse.
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  • king999king999 Member Posts: 450 ✭✭✭
    edited November -1
    There is an interesting gimmick here.If you tell your dealer to order it, and HE pays for it with HIS check (or cash or whatever), HE has purchased the gun. Now when he transfers it to you asking for payment (+ transfer fee, etc), you are buying it from him and you are liable for the sales tax. If you have your dealer place the order, but YOU pay for it with YOUR check, in advance, (the check should be payable to the the out-of-state seller), then YOU have purchased the item, your state sales tax not due (unless they have a compensating tax). In other words, you pay up front; no tax, you pay at delivery, taxable.Morty
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  • Smoky14Smoky14 Member Posts: 531 ✭✭✭
    edited November -1
    Hey KimberJust ask any govt agency and they'll say "just pay to be on the safe side" Let's face it "they" will take every opportunity to make money wheather they are entitled to it or not. If you over pay; try to get it back
    Respect for self Respect for others Responsible for all actions
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  • JIM STARKJIM STARK Member Posts: 1,150 ✭✭✭
    edited November -1
    Hey!!! Let me check into this one from the sunny state of South Carolina...... If my customer handles the currency transfer himself and I do nothing but receive and transfer the firearm, I charge $25.00 "labor" (not taxable) BUTTTTTT..... My customer is supposed to claim the out of state purchase and pay the state of SC 5% sales tax at income tax time, on the honor system(I guess ????)..My customer,in this instance is fully responsible for settling up with the state for the sales tax on the purchase.I owe the state nothimg since labor charges are not taxable and all I provided was labor!! Even though our laws and such are really screwed up... This o'le USA is still the best place in the whole world to be .... Just my humble opinion..!![This message has been edited by JIM STARK (edited 10-18-2001).]
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  • kimberkidkimberkid Member Posts: 8,858 ✭✭✭
    edited November -1
    Kansas taxes you for everything, Products, services, food, perscriptions, personal property like car, boat, home ... in Topeka the rate is 6.8% ... pretty soon the will have to start taxing the tax ...
    GUN CONTROL: If you're not outraged, you're not paying attention!kimberkid@gunbroker.zzn.com
    If you really desire something, you'll find a way ?
    ? otherwise, you'll find an excuse.
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