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Discussion Starter · #1 ·
Does your FFL collect tax on firearms ordered from out of state? On any other product that you purchase from a business located in another state, you do not pay state sales tax. Or at least I don't in Iowa.

I'm preparing to purchase a Colt AR. And the first FFL I've talked to stated that he charges twenty dollars, plus tax. It's been awhile since I bought a firearm from out of state, but I recall not being charged tax for such purchases from my first FFL. Just a flat transfer fee. Then, when he went out of business, I was taken by surprise when the new guy I found collected tax on a rifle purchased from Arizona.

Since this is around a $1000 item, the tax is a serious consideration for my budget.
 

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You have, for some time now, been supposed to be estimating your state sales tax obligation on everything you buy online or thru catalogs that comes from out of State.. there should be a block on your state income tax form to enter your estimated amount.

But if you haven't been doing that, no problem.. now online and catalog , or in your case LGS are collecting and reporting to your state or soon will be.
The rule was something along the lines of online and catalog businesses that did not have a brick and mortar presence in your state didn't have to collect sales tax .. you were still supposed to estimate and report your own purchases and pay the taxes on businesses that didn't have to collect the tax... that was a rule because it was deemed to cumbersome for out of state businesses to do the collecting because it isn't just state taxes , but county and city sales tax as well. Well computers fixed that.. leverage was created, deals were cut for online dealers to get tax breaks ( mostly other taxes, but not sales taxes) if they built brick and mortar in a state created jobs and collected sales taxes. There have been several schemes to require sales reporting over certain amounts usually involving a 1099 federal tax form for miscellaneous income that goes to the feds and then they send the info to the states if they think any of that income was from selling stuff online like ebay to folks out of state. and I am not sure if any of those plans survived .. there was one provision in the ACA about that http://www.whitehouse.gov/blog/2011...-reporting-requirement-big-win-small-business but then there is this http://www.nfib.com/article/some-10...-still-exist-for-small-business-owners-58973/ So.. with the economic downturn States and Cities are hurting , Brick and Mortars are calling the online exemption to collect sales taxes unfair, and citizens are pretty much ignoring their obligation to self report and pay the sales taxes .. So it wouldn't surprise me in the least that the States are cracking down on collection. Now everybody has to keep books to be compliant , even private citizens... my state has certain exemptions.. live plants , like from greenhouses and nurseries are exempt .. yard sales are exempt so long as all that is being sold is actual family property.. you go buy a case of cokes to sell to the shoppers and now you are a business and have to collect sales taxes ... expect a similar level of complexity and stupidity for your states tax laws that you find in any states small business tax laws .. enforcement here has been spotty so far.. but most states see it as a great resource of untapped income.
 

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Maybe he is only collecting the tax on the $20. Makes more sense to me.
 

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Discussion Starter · #5 · (Edited)
Maybe he is only collecting the tax on the $20. Makes more sense to me.
I'm pretty certain he meant it would be seven percent on the purchase price of the rifle. Or around $70 in this case. I bought an AMD-65 after the ban expired and it was an unexpected $30 expenditure on that transfer, which the FFL neglected to mention in advance.

And I guess I should clarify and say that with other online purchases, where the company has no brick and mortar presence in my state, they do not collect state sales tax.
 

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I'm pretty certain he meant it would be seven percent on the purchase price of the rifle. Or around $70 in this case. I bought an AMD-65 after the ban expired and it was an unexpected $30 expenditure on that transfer, which the FFL neglected to mention in advance.
Actually, since the LGS/FFL is serving as a transfer agent instead of seller, it is a "use tax" - same as a sales tax, but applicable on property bought out of state and brought into your state. Most states (all that i know of) have a "Sales & Use Tax", and credit state of sale taxes paid if you did pay such and can prove it.
 

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Discussion Starter · #7 ·
Actually, since the LGS/FFL is serving as a transfer agent instead of seller, it is a "use tax" - same as a sales tax, but applicable on property bought out of state and brought into your state. Most states (all that i know of) have a "Sales & Use Tax", and credit state of sale taxes paid if you did pay such and can prove it.
So you're saying I could've received a $30 tax credit from the state when I bought that AMD-65 in '04?
 

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So you're saying I could've received a $30 tax credit from the state when I bought that AMD-65 in '04?
Maybe. Depends on details of your state law (and whether you paid sales tax in the state of origin). If you had bought it from somebody in Looseyanner and paid tax there and had it delivered to an FFL in Tejas, you could have claimed a credit of the Tejas use tax. If you could prove you paid the Looseyanner tax. Whether the law is the same in Eye-oh-way,, dunno.
 

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Discussion Starter · #10 ·
Well, I guess I'll budget for an extra 70 bucks. The second FFL I called, who is already on file at the place I'm ordering from, was unsure when I asked about tax.

Spending nearly a grand on a firearm is a big deal for me.
 

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Many states have agreements between them and will collect sales tax for each other. I find that most purchases I make online, including ammo, now charge the NC sales tax. It is BS but it is real. Keeping up with purchases that do not collect sales tax, or use tax, is even a bigger pain in the back side. If the government thinks that everyone is gonna keep track of every untaxed out of state purchase, they are in La La land and many computers will be transferred to Lois Learner for their disappearance. I recently noted a free police sponsored program here to dispose of hard drives for free. Luckily, my online out of state purchases are largely limited to vitamins from Wally world, who charges the tax.
 

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Also, Looter, I forgot to mention, sometimes one does not ask questions. I bet you have increased the probability of having to pay upon pickup. If you did not pay then you probably could have waited till April 15, 2015. What we need is more gobermeant. Heaven forbid them not having their hand in our empty pocket at every chance.

I remember paying tax at CMP. What was I thinking? I could have waited almost a year, and I paid a higher % which I forgot to claim on my state tax. I figured at the time I would have to pay it so I got it over with. Talk about painful, try 2 M1Cs and a Kimber. Tax was almost $700.
 

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Discussion Starter · #13 ·
Also, Looter, I forgot to mention, sometimes one does not ask questions. I bet you have increased the probability of having to pay upon pickup. If you did not pay then you probably could have waited till April 15, 2015. What we need is more gobermeant. Heaven forbid them not having their hand in our empty pocket at every chance.

I remember paying tax at CMP. What was I thinking? I could have waited almost a year, and I paid a higher % which I forgot to claim on my state tax. I figured at the time I would have to pay it so I got it over with. Talk about painful, try 2 M1Cs and a Kimber. Tax was almost $700.
I know I should've kept my mouth shut, but I was genuinely confused and wanted to see what he said. If I'm supposed to pay the tax, I'll pay the tax.
 

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Maybe he is only collecting the tax on the $20. Makes more sense to me.
Exactly. I had the Kentucky Sales tax people tell me that the point of sale is where the 4473 is completed. I asked - what if I did not know the sales price as I was doing a transfer for an on line deal between two parties. The reply was that I had to ave some fixed amount on which to collect sales tax. A friend in PA collect sales tax there based on the transfer fee and has had no problems so far.
 

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Diamond with Oak Clusters Bullet Member
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Many states have agreements between them and will collect sales tax for each other. I find that most purchases I make online, including ammo, now charge the NC sales tax. It is BS but it is real. Keeping up with purchases that do not collect sales tax, or use tax, is even a bigger pain in the back side. If the government thinks that everyone is gonna keep track of every untaxed out of state purchase, they are in La La land and many computers will be transferred to Lois Learner for their disappearance. I recently noted a free police sponsored program here to dispose of hard drives for free. Luckily, my online out of state purchases are largely limited to vitamins from Wally world, who charges the tax.
Dispose of your own hard drive - do not trust the police. Pull out the media thing and shred it.
 

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Also, Looter, I forgot to mention, sometimes one does not ask questions. I bet you have increased the probability of having to pay upon pickup. If you did not pay then you probably could have waited till April 15, 2015. What we need is more gobermeant. Heaven forbid them not having their hand in our empty pocket at every chance.

I remember paying tax at CMP. What was I thinking? I could have waited almost a year, and I paid a higher % which I forgot to claim on my state tax. I figured at the time I would have to pay it so I got it over with. Talk about painful, try 2 M1Cs and a Kimber. Tax was almost $700.
You have to support your government. They need your money.
 

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Discussion Starter · #17 ·
Well my FFL called the state, and they told him he had to collect tax on the transfer fee only. When I emailed the state treasurers office ten years ago with the same question, the response was "Yes, the FFL is supposed to collect tax on a rifle purchased from out of state".

This dealer also said that if he'd ordered the rifle himself, then he would be required to collect the sales tax when transferring it to me.
 

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Well my FFL called the state, and they told him he had to collect tax on the transfer fee only. When I emailed the state treasurers office ten years ago with the same question, the response was "Yes, the FFL is supposed to collect tax on a rifle purchased from out of state".

This dealer also said that if he'd ordered the rifle himself, then he would be required to collect the sales tax when transferring it to me.
Both scenarios are different, therefore, different actions.
 
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