Are FFL Transferrers supposed to charge tax?
Almost every FFL transferrer in my area is charging sales tax, whats up with that, are they being shifty or is that the norm.
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quote:Originally posted by damdanger
Almost every FFL transferrer in my area is charging sales tax, whats up with that, are they being shifty or is that the norm.
Yes,
I am a MI 01 FFL, and we are required to collect 6% sales tax.
Don0 -
yes, all the states i am aware require that tax be collected at the point of transfer. some ffl's have told customers that they will avoid the tax to make a sale. some have collected the tax and then sent it out of state for the tax to be collected again. i know of three ffls who have had to repay very large tax's that were not collected. 0 -
Bah, wish i knew before hand, only reason that i could justify buying the gun online was dipping on sales tax:( 0 -
How does the receiving FFL know how much the item cost? Which state is supposed to get the sales tax? Shipping state or receiving state?
This is crap if you ask me. I buy anything else out of state and I don't pay sales tax, but purchasing a firearm and then I need to pay it. Doesn't seem consistent to me, what am I missing?0 -
FFL's here charge tax on the transfer ... not the item.
I've heard that it's the responsibility of the purchaser to voluntarily pay the sales tax to his state since that's where "he" bought it.0 -
use several ffl transfer storefront dealers.... $20 cash, paperwork, call, go home...... 0 -
It is a sevice and therefore taxible, In fact if the FFL dosen't collect tax he is breaking the law...of course many will argue the point...they are wrong...it is a service and is taxable!!!! 0 -
The customer sends payment, I send the FFL. Since I am not acting as an agent for the buyer, nor has his money passed through me, I am not responsible to collect any sales taxes that may be due.
The buyer can pay it when he files his state income tax.0 -
quote:Originally posted by p3skyking
The customer sends payment, I send the FFL. Since I am not acting as an agent for the buyer, nor has his money passed through me, I am not responsible to collect any sales taxes that may be due.
The buyer can pay it when he files his state income tax.
If you collect a fee for your service that fee is state sales tax taxable Or I should say it is in Ohio....States may vary don't know... don't care!!! If the service occured in Ohio then it is taxable in Ohio!!! And more than likely it is that way in your state too!0 -
[8D]--Recieve transfer from-STATES-Transfer--
--Pay transfer fee--No state tax
--Internet-It's changing--
---JIMBO0 -
It is legitimate and maybe even required in some states to charge tax on the transfer fee. 0 -
i have no problem paying sales tax on the actual service, but it seems shifty for an ffl to charge sales tax on something they are not selling, it is not their concern about the money spent, just their service 0 -
Just to be clear, they are asking for sales tax on the gun.. 0 -
quote:Originally posted by kimberkid
FFL's here charge tax on the transfer ... not the item.
I've heard that it's the responsibility of the purchaser to voluntarily pay the sales tax to his state since that's where "he" bought it.
In LA services are not taxable but tangible items are. You pay tax on the gun when you purchase it in the state, but when I bought a gun off GB & had it shipped to my local dealer he charged me his fee with no tax. Depends on your state - some try to tax internet sales, some exclude certain items and/or services.0 -
Never had to pay tax on guns bought out of state and shipped to an FFL for transfer here in WV. The two that I use the most just charge a flat $20.00 transfer fee.
If I have a dealer or FFL holder order a gun and then pay for it once it arrives. Then Yes I have to pay the WV sales tax.
But for guns bought and paid for out of state. No.0 -
Thats exactly what i thought and everyone i have talked to says the same, i just think my local people are shifty, all the local gun shops are horrible, they overcharge, and are all snobby... And scandalous to boot.
I just think they are trying to get the tax and keeping it for a bonus.0 -
quote:Originally posted by damdanger
Thats exactly what i thought and everyone i have talked to says the same, i just think my local people are shifty, all the local gun shops are horrible, they overcharge, and are all snobby... And scandalous to boot.
I just think they are trying to get the tax and keeping it for a bonus.
Ask them for a receipt showing they charged you sales tax - that ought to tell the tale. If they are keeping the money and they give you a receipt for it as sales tax you got 'em by the short and curlies.0 -
Originally posted by damdanger
Thats exactly what i thought and everyone i have talked to says the same, i just think my local people are shifty, all the local gun shops are horrible, they overcharge, and are all snobby... And scandalous to boot.
I just think they are trying to get the tax and keeping it for a bonus.
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Michigan has some weird gun laws.... especially on transfers....or so I have been told by friends that live or have lived there!!! (I just noticed the Flint Mi) That may well be part of the problem!!!0 -
this always has been a controversy i have yet to see a positive single answer
to say the ffl doing the transfer collects the tax is not always correct, what if i purchased a gun long distance from the state i live in and the seller collected the taxes, what if i purchased a gun from the adjoining state in person and paid their sales tax, then had it transferred?
absolutely positively no sales tax should be charged for a transfer, there was no merchandise involved just a service, just like a car dealer who repairs your car, you are charged a tax on the parts but not the service
what ever the state the item is sold in should collect the taxes, any other way would screw up the others books, one would have x amount of sales with not having the taxes collected, the other would have x amount of taxes collected for sales they did not make0 -
quote:Originally posted by p3skyking
The customer sends payment, I send the FFL. Since I am not acting as an agent for the buyer, nor has his money passed through me, I am not responsible to collect any sales taxes that may be due.
The buyer can pay it when he files his state income tax.
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quote:Originally posted by 1911a1fan
this always has been a controversy i have yet to see a positive single answer
to say the ffl doing the transfer collects the tax is not always correct, what if i purchased a gun long distance from the state i live in and the seller collected the taxes, what if i purchased a gun from the adjoining state in person and paid their sales tax, then had it transferred?
absolutely positively no sales tax should be charged for a transfer, there was no merchandise involved just a service, just like a car dealer who repairs your car, you are charged a tax on the parts but not the service
what ever the state the item is sold in should collect the taxes, any other way would screw up the others books, one would have x amount of sales with not having the taxes collected, the other would have x amount of taxes collected for sales they did not make
I'm positive that in Ohio if you provide a service it is taxable!!! Period.... That is the law!!! Collecting state sales tax can be googled by state if you wish....0 -
Quote:
I'm positive that in Ohio if you provide a service it is taxable!!! Period.... That is the law!!! Collecting state sales tax can be googled by state if you wish....
Same for NYS0 -
A taxable sale includes any transaction in which title or possession of tangible personal property or the benefit of certain services is, or will be, transferred or provided for a price. All retail sales are subject to the tax unless they are specifically excepted or exempted in Ohio's sales tax law. 0 -
quote:Originally posted by tobefree
A taxable sale includes any transaction in which title or possession of tangible personal property or the benefit of certain services is, or will be, transferred or provided for a price. All retail sales are subject to the tax unless they are specifically excepted or exempted in Ohio's sales tax law.
not in il or mo0 -
Mine has never charged tax. And he has done many of them for me, including one just today! 0 -
quote:Originally posted by damdanger
Thats exactly what i thought and everyone i have talked to says the same, i just think my local people are shifty, all the local gun shops are horrible, they overcharge, and are all snobby... And scandalous to boot.
I just think they are trying to get the tax and keeping it for a bonus.
You are so right, you should go apply for a license and get in on the scam!0 -
who says tax isnt included in the "flat $20 rate"??? ow whatever they charge...
hmmm0 -
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No state sales tax in Orygun.
Doug0 -
The letter from the state of Michigan is wonderful. It's the most concrete position that I've seen in a long time. However, there is still a cloudy area, at least as far as the folks in Ohio are concerned. Several years ago, the feds came down on some local dealers, and in the process of trying to shut them down, they turned to the state of Ohio, department of taxation for help. Basically, the state's position was: 1) in order to buy or sell a firearm to a person in another state through the mail or common carrier an FFL is required; 2) therefore the way the transaction is supposed to work is that the FFL holder sends the money to the individual in the other state who doesn't collect sales tax because he/she is not a retail business; 3) the person who is buying the firearm is then supposed to pay the local FFL; 4) because the actual point of transfer (ie point of sale) is the FFL dealer's store, sales tax MUST be paid on the full price of the firearm, not just the service of transferring the firearm; 5) just because it is common practice for individuals to send payment directly to other individuals, that isn't the "proper" legal order of the transaction; 6) any item that goes through the hands of a retailer MUST have tax paid on the value of that item; and 7) yes, sales tax must be paid on the service of transferring the firearm as well. Now, the store where I was working at the time received a letter from the Ohio Department of Taxation laying all this out, and the store did collect tax. But then they went out of business and that was that. I've tried to explain this to other local dealers where I've worked since then, but they don't seem to think that the state tax folks are a serious threat. However, they can shut your doors just as easily as the feds can. So, if it were my store, I'd be charging tax. Best of luck - Steve 0
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