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very imprtant question

win73man
Point of clarification?
When I as a C & R license holder win an auction for a FFL 1 firearm from someone in another state, and have my friendly neighborhood dealer handle the transfer, do I have to pay state sales tax?
I have always offered him a transfer fee as he is a friend but he does not want that but has all of the sudden wanted tax.
What gives? Is he having a brain fart, or am I?

PS anything different in other states?
PSS anybody from Mississippi know?
PSSS when you order something from Cabelas etc you do not have to pay sales tax on that out of state purchase. Why is this different?
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Comments

8 comments

Date Votes
  • Laredo Lefty
    He is supposed to collect tax from you. It has been that way for a long time.

    If he gets audited and it is found he did not collect taxes, he could be in trouble with big brother. If he is a friend, I would pay-up to help keep him out of trouble.

    "Never let school interfere with your education"
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  • gskyhawk
    I think it depends on your state , I live in WI
    the dealers that I have use do it this way , if I send for a firearm that I have won on auction or purchased thru want adds, ie I send the payment and their FFL, then they do not charge sells tax , now if I have them order the firearm for me , ie they are paying for the firearm , shipping ect. , them they charge the state sells tax
    I guess it the 1st place all they are doing is the transfer , in the 2nd they are ordering the firearm into their inventory and them selling it to me thus making a profit instead of just a transfer fee
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  • MIKE WISKEY
    GSKYHAWK, I'M FROM WI. ALSO. YOUR DEALER SHOULD BE CHARGING YOU FOR SALES TAX ON EVERY THING HE HANDLES FOR YOU. HE IS ACTING AS YOUR 'AGENT' AND SHOULD COLLECT THE TAX. I WENT ROUND & ROUND WITH THE TAX DEPT. ON THIS. IF HE GETS AUDITED HE WILL BE CHARGED FOR THE MISSING TAXES AND CAN COME AFTER YOU FOR THEM. IF YOU ORDER ANYTHING FROM OUT OF STATE YOU ARE 'SUPPOSED TO' REPORT THIS ON YOUR TAX RETURN AND PAY THE STATE AND CO. SALES TAXES.
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  • win73man
    quote:Originally posted by MIKE WISKEY
    GSKYHAWK, I'M FROM WI. ALSO. YOUR DEALER SHOULD BE CHARGING YOU FOR SALES TAX ON EVERY THING HE HANDLES FOR YOU. HE IS ACTING AS YOUR 'AGENT' AND SHOULD COLLECT THE TAX. I WENT ROUND & ROUND WITH THE TAX DEPT. ON THIS. IF HE GETS AUDITED HE WILL BE CHARGED FOR THE MISSING TAXES AND CAN COME AFTER YOU FOR THEM. IF YOU ORDER ANYTHING FROM OUT OF STATE YOU ARE 'SUPPOSED TO' REPORT THIS ON YOUR TAX RETURN AND PAY THE STATE AND CO. SALES TAXES.


    If I obtain the MO for the seller and no money changes hands between the two dealers how can the amount of puchase which had not gone through the dealer be shown as a sale as opposed to the transfer that it is ?
    Lee
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  • Mooseyard
    Mike your mistaken. The firearm was purchased from out of state. It is the purchasers responsibility to add the taxes to his return at the end of the year. It is in no way the responsibility of the transfering dealer to collect taxes for a firearm that he never owned.
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  • Der Gebirgsjager
    It does indeed all come down to what state you live in and what state you are buying from, and who has a compact with who concerning collecting their sales taxes. In Oregon there is no sales tax, and we do not collect it for other states.
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  • gruntled
    The best way to get the definitive information is to contact your state tax board. In Kalifornia the Franchise Tax Board has a web site & you can ask questions.
    When this subject came up quite some time ago I asked this question & recieved a prompt response that it is the buyer's responsibility to pay the Use Tax on their state Income Tax form.
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  • MIKE WISKEY
    LIKE I SAID IN MY FIRST POST, I WENT ROUND & ROUND WITH THE WIS. DEPT. OF REV. OVER THIS. IT BOILS DOWN TO YOUR DEALER ACTING AS YOUR 'AGENT'. IF YOU CAN GET ANYTHING IN WRITING ON THIS I SURE WOULD BE INTERESTRED IN A COPY. IN THE MEAN TIME I'LL C.Y. 'MY' A.
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