Sales Tax

ccar241 · September 2002

I assume each state differs on this subject. If there is anyone out there from Massachusetts who's done business here before, could you tell me if sales tax would be collected on a handgun bought out-of-state during the transfer process?

Thanks

ccar241 · September 2002

I was wondering if it is customary for all incoming FFLs to collect their state sales tax on out of state transfers?

ccar241 · September 2002

I am confused. I was reading WV sales tax rules and requirements and it sounds to me like West Virginia requires sales tax to be collected for internet sales from WV. And a use tax if it was brought into WV. I thought all sales on the internet across state lines were sales tax free. It seems to me that they could track the gun sales to tax as the FFL dealers must keep good records of all sales.

ccar241 · September 2002

More and more dealers around here are deciding they have to charge the state's 5% sales tax on a GB purchase. A simple classifed ad transfer between private parties in the state is $10 at your dealer, but because you're "using" the dealer's FFL when you "order" a gun from out of state he figures the law requires him to collect as the seller to me. He says there's also no way of telling whether the seller is a distributor, dealer or private person. Bummer. Theoretically, I suppose I could order a gun wholesale from SOG, say it was an auction and ask for a copy of my dealer's FFL, send in my money and pick it up at my dealer's for his auction fee. Auction fees are still holding here between $20 and $30, with one or two exceptions, and one guy charges 10% plus sales tax. I'm currently using a guy that charges $10 plus sales tax. Some of these guys seem to think some dealers are "skating" on the sales tax issue.

"The 2nd Amendment is about defense, not hunting. Long live the gun shows, and reasonable access to FFLs. Join the NRA -- I'm a Life Member."

ccar241 · September 2002

I AM A N.J. RES. AND I WANT TO PURCHASE A FIREARM THRU THE ONLINE AUCTION, IF THE SELLER IS FROM OUT OF STATE DO I HAVE TO PAY SALES TAX TO THE SELLER OR TO MY FFL IN N.J.?

admin · September 2002

Typically, sales tax is only collected on the transfer fee and is only collected in states where services (the transfer) are taxable. Since you paid the seller directly for the item the item itself is typically non-taxable (see below).

Federal law prohibits states from charging sales tax on out of state purchases. To skirt Federal law, some states have attempted to implement 'usage' taxes which is basically the same thing but is levied on out-of-state purchases.

We do not know Mass. law, so we cannot tell you whether the state taxes services or whether there is a usage tax in your state. Try calling the state Department of Revenue, Sales Tax division, and ask them.

DancesWithSheep · September 2002

It also depends on whether your dealer is just handling an out-of-state transfer of a private sale or has puchased the gun from a distrbutor or other source, even if in your behalf. If the latter, you may be liable for sales tax if the dealer is buying the gun first (going out-of-pocket) and reselling it to you, and is running it through his books that way.

Often the mind believes it is thinking, when it is only passing from one metaphor to the next.

mark christian · September 2002

I'm a firearms dealer in Southern California and can say that as both the previous posts are correct, at least as far as California sales tax is concerned. I've had a number of requests to do something like this: the customer will want to call wholesaler X, in lets say Texas. He wants to purchase a big ticket rifle ($2000+) and pay for it himself and then have me do the transefer- for a fee. The Texas dealer won't charge sales tax becuase the gun is being shipped out of state. Well once the rifle gets to California the customer owes "use tax", just as admin said. If the customer wnats to get his new gun he needs to pay me the 7.75% he owes in tax. I'll have a copy of the receipt from Dealer X (I need one for my records) so I base my tax charge on that amount. Dealer X has no reason to lie or send a false receipt so the money is due. The California State Board of Equalization calls these transactions "third party sales". The bottom line here is that somebody has to pay the tax...either the customer or me and I can assure you I'm not going to do it! I'm sure that nearly every state has simular state sales tax rules. Even if a dealer would fail to charge the tax, legaly- at least here in California, you are required to send the tax due into the SBE on your own for anything you've ordered or purchased out of state...although I've never meant anyone who's ever done this, There must be someone.

Mark T. Christian

alton167 · September 2021

I was just charged a Sales Tax for an item that I was, selling, the auction was cancelled. No item was ever sold or shipped. How can you charge a sales tax when nothing was eve sold. GunBroker is great for buyers, as I have been both a seller and buyer from now on I will never be a seller again/