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Question for FFl Dealers

MFIMFI Member Posts: 7,899 ✭✭✭
edited January 2002 in Ask the Experts
If you sell a something on the GB auction. How do you charge sales tax ? Do you tax only the winners that are in your state ? Also if someone out of state wins do they pay the sales tax to the dealer upon receiving the gun from them ? How does it work ?
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Comments

  • MIKE WISKEYMIKE WISKEY Member Posts: 10,035 ✭✭✭✭
    edited November -1
    if you sell something to someone out of state and ship it to a ffl, that ffl is resopnsible for collecting his states sales tax. you are off the 'hook'.
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  • mhansonmhanson Member Posts: 79 ✭✭
    edited November -1
    mike wiskey how do you know if he paid 200.00or 2000.00. is it the ffl's responsibility to find out the cost. the ffl is just doing a 20.00 service right or not ?????????????
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  • mhansonmhanson Member Posts: 79 ✭✭
    edited November -1
    SORRY I ASKED!
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  • MFIMFI Member Posts: 7,899 ✭✭✭
    edited November -1
    So if my shop is in NY and a PA resident buys a gun I dont charge him sales tax ? But if a NY resident buys one then I do ? Or does that only apply to guns being shipped to the buyer who is out of state ?
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  • EOD GuyEOD Guy Member Posts: 931 ✭
    edited November -1
    MFI,If a sale is made face to face at your shop, you charge sales tax regardless of what state the person is from.. If a person orders from you and you ship the item to another state, there is no sales tax charged.The exception where sales tax would be charged on interstate sales is if the seller has a busines presence your state. For instance, you order an item from a Sears warehouse in Nevada and they ship it to you in California. Since Sears has a business presence in California, sales tax at the rate in your location must be charged. This rarely comes in to play in firearms sales though.
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  • MFIMFI Member Posts: 7,899 ✭✭✭
    edited November -1
    EOD guy, these are the standard practices we have used for several years in business. We are just wondering how all the sales tax thing works with internet sales. DOnt want BATF after us now... Thanks guys.....
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  • ref44ref44 Member Posts: 251 ✭✭✭
    edited November -1
    I have had an FFL for 24 years. Anytime I am asked to receive a gun for someone, I give them a copy of my FFL with the specific item being shipped written near the bottom. They make the deal, they send the FFL, they send the money. When the gun arrives, I do the required check and paperwork,and the buyer takes his goods. I pay sales tax on whatever fee I charge him. I never owned the gun. It was never in my inventory. It was in my possession only a few hours max. I did not arrange for the transfer. I provided a federally-required service and paid sales tax on my fee.
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  • JIM STARKJIM STARK Member Posts: 1,150 ✭✭✭
    edited November -1
    Just what jurisdiction could one imagine that the BATF would, or could, have; concerning state sales taxes? I say NONE!!..I have lived in at least a dozen states in my Navy and civilian careers and I am not aware of nor do I remember living in a state where services, such as a weapon transfer would be taxed....When you get your car out of the shop in S. Carolina.. or even your gun out of the shop...Parts are taxed at the prevailing sales tax rate and the labor is not taxed.... If the state you live in taxes services and / or labor....Then pay it, or charge for it..Different states have different rules and laws... Some of the folks on this site act as if the laws in their state apply to all 50....NEWS FLASH....THEY DON"T.. & that's my $20.00 's worth........[This message has been edited by JIM STARK (edited 01-17-2002).]
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  • ref44ref44 Member Posts: 251 ✭✭✭
    edited November -1
    Jim..you are correct that ATF has no jurisdiction regarding sales tax; but they will not issue an FFL or grant a renewal if they know you are not in compliance with state sales tax laws...or zoning regs.
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  • JIM STARKJIM STARK Member Posts: 1,150 ✭✭✭
    edited November -1
    The only thing ATF requires is a current & valid sales tax certificate.Compliance with the state tax laws is a states rights thing...If the state finds you in violation of the tax rules,they'll pull your sales tax license...Then ATF will certainly have something to say about renewal... Atf is not tasked with the responsibility of enforcing compliance with state tax rules, just assuring that you are in compliance before issue or renewal...
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