Taxing question on dealer transfers ? The result!
Well the "Skinny" in the State of Kansas is that you DO have to pay sales tax on a on any "Purchased" firearms transferred to a Kansas dealer ... the states way of thinking is that since you cant legally own the firearm without the transfer, you "in essence" purchased it from the dealer ... regardless if the dealer was involved in the sale or not.When I asked "How does the dealer know what to base the tax on?" At first the gal I was talking to played dumb (or maybe not actually playing) and asked "What do you mean?" so I played along and said "For instance, I buy a shot gun through an internet auction from an individual, send him the payment and he ships the gun to my dealer" Here she interrupted me and said "He can't do that if he's not a dealer" And of course I corrected her and told her only he receiving person or company has to be a dealer. She wanted to argue that point until she finally called FedEx and found I was correct (this didn't set too well with her) So I finally continued, since this person is an individual, there is no receipt for the transaction ... so I restated my original question: "How does the dealer know what to base the tax on?" Her reply was as expected: "All I know is that in Kansas you have to pay the sales tax to the dealer that transfers the weapon." Next I asked her "What about guns purchased at a gunshow from an out of state dealer, that dealer has to collect sales tax ... correct?" She was getting a little peeved by this time and said "Correct." So I asked, "Then I have to pay sales tax AGAIN to the dealer that handles the transfer?" And again her reply was as expected: "All I know is that in Kansas you have to pay sales tax to the dealer that transfers the weapon." When I objected to paying sales tax twice she just said "Well, that's the way it is!" Even though it was obvious she was tired of dealing with me I asked her "Would you pay the sales tax twice?" and she just said; "Why would I want a gun?" ... then she just walked away and left me standing there.
GUN CONTROL: If you're not outraged, you're not paying attention!kimberkid@gunbroker.zzn.com
GUN CONTROL: If you're not outraged, you're not paying attention!kimberkid@gunbroker.zzn.com
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And that is getting to be a problem in more and more states as they attempt to recoup revenue lost to interstate transactions.As for the gunshow dealer scenario, that dealer should not be collecting Kansas sales tax unless he has a Kansas sales-tax certificate. Thus, only the dealer doing the transfer would be collecting the sales tax.I have been in the habit of enclosing a purchase receipt when a ship an item. Now some buyers are requesting I not do that because of the sales tax issue....
We buy, sell and trade quality guns and scopes!Ask us about Shepherd Scopes!Visit our website at www.ApaxEnterprises.com0 -
AntiqueDrThe only problem is that all exibutors are required to collect the sales tax, even the guy selling his privite collection. The promoter supplies the state with a list of names and addresses of all exibutors and they (the state) send out a form for you to declare your sales on, you send it in with the payment of tax you collect ... from personal experiance I know these "rules" aren't being enforced as I called several gun & pawn shops yesterday and asked about tax on transfers, all but one said "No Tax unless you buy it from me."
GUN CONTROL: If you're not outraged, you're not paying attention!kimberkid@gunbroker.zzn.com0 -
This is going to get worse before it gets better. The states are looking at the big pile of money they are losing on Internet sales (not just auctions) and coming up with half-assed poorly thought out responses.
We buy, sell and trade quality guns and scopes!Ask us about Shepherd Scopes!Visit our website at www.ApaxEnterprises.com0 -
I've been to several shows in many of the Gestapo-minded states on the East Coast. Despite all the BS signs posted, I have had only one exhibitor try to charge me sales tax. I left a *VERY* large pile of merchendise ($X,000) in the middle of his table w/ the loud comment that "f I wanted to support the [deleted] [deleted] [deleted] politicians of XX I'd live here!" And walked off. So did two other buyers waiting with money in their hands. I work very hard to avoid spending dime one in NY, NJ, MA or any other Gestapo-run state when this will put any money in their treasuries, to the point of driving way out of my way to avoid their toll roads and/or buy my gas in other states enroute. 0 -
I usually don't collect sales tax on an itema client buys from an out of state dealerand transfers through me. I do collect sales tax on the fee I charge.If a client wants to buy items from a nondealer (a distributor with no retail sales) then we negotiate a price and sales tax is collected.Is this about how the rest of you FFL'shandle it? 0
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