1. Attention: We have put together a thread with tips and a tutorial video to help with using the new software. Please take a moment to check out the thread here: Trapshooters.com Tutorial & Help Video.
    Dismiss Notice

Sales tax ?

Discussion in 'Uncategorized Threads' started by chatbrat, Mar 4, 2008.

Thread Status:
Not open for further replies.
  1. chatbrat

    chatbrat TS Member

    Joined:
    Jan 29, 1998
    Messages:
    378
    If you buy a gun online & ship it to your home state to an FFL, is the FFL license holder in your home state required to collect state sales tax----Phil
     
  2. grnberetcj

    grnberetcj Active Member

    Joined:
    Jan 29, 1998
    Messages:
    5,680
    I believe the sales tax would be at the "Point of Sale".

    Luckily here in Delaware, we have no sales tax, just a small "Income Tax".

    Curt
     
  3. grnberetcj

    grnberetcj Active Member

    Joined:
    Jan 29, 1998
    Messages:
    5,680
    I forgot to add that when I buy items online, phone, etc., and have the items shipped to me (or a dealer), I pay no tax. My location is the "Point of Sale".

    Curt
     
  4. phirel

    phirel TS Member

    Joined:
    Jan 29, 1998
    Messages:
    9,556
    It is my understanding that if the sales tax is not paid by the seller, it should be paid by the purchaser in his state. Enforcement of this is very difficult.

    Pat Ireland
     
  5. dmarbell

    dmarbell Active Member

    Joined:
    Aug 26, 2006
    Messages:
    1,572
    chatbrat,

    You are not required to pay sales tax on out-of-state purchases in NC. The FFL is not the seller, and should not collect sales tax.

    NC imposes a use tax on such transactions, however. For all online and out-of-state purchases, on which no sales tax is paid, the purchaser is responsible for the use tax.

    See Form D-400 (NC income tax return), line 17. Read the instructions for line 17. There is a "safe harbor" of sorts, if you don't keep records. It is .000675 times your NC taxable income. You are required under NC law to account for items over $1,000 separately.

    As Pat said, difficult to enforce, and most people don't report it correctly.

    Danny
     
  6. Mike Battista

    Mike Battista Well-Known Member Supporting Vendor

    Joined:
    Jan 29, 1998
    Messages:
    3,958
    Here in Florida, if you have a gun maybe a Browning sent to an FFL dealer from out of state, you are still liable for the applicable state sales tax here in Florida. As an FFL dealer I don't know what you paid for the gun therefore I would not know what to collect for sales tax. You as the consumer are responsible for the sales tax. Department of Revenue has not figured out how to assess and collect the tax but they will. Given the declining revenues of the state budgets these days they, the State, are looking for additional funds to bolster their bottom line. According to the Florida Department of Revenue all back sales taxes when collected would be subject to interest and / or penalties on same. This unpaid sale tax could total in the hundreds of thousands of dollars and the state wants it all. It would not surprise me if a Revenue agent were to come in and go over my A&D book for transfers.
    Mike Battista
     
  7. BIGDON

    BIGDON Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    6,625
    Location:
    Michigan
    Read your state income tax form. Many now ask if you have made out of state purchases and if you paid the sales tax. Your choice commit evasion or tell the truth. Is it worth the penalty??

    Don
     
  8. grnberetcj

    grnberetcj Active Member

    Joined:
    Jan 29, 1998
    Messages:
    5,680
    I buy stuff from all over the U.S. and have it sent to my address in Delaware....which is technically the point of sale/receipt and as we have no sales tax, I'm not liable to pay any other entity.

    I order stuff from Florida and have yet had to pay them a dime in taxes.

    Curt
     
  9. BIGDON

    BIGDON Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    6,625
    Location:
    Michigan
    Curt Michigan start enforcing because of all the Internet sales they were missing out on. They are only collecting the tip of the iceberg but are coming hard. I just had to pay $7000 sales tax on a purchase in Florida.

    Don
     
  10. Fast Oil

    Fast Oil TS Member

    Joined:
    Jan 29, 1998
    Messages:
    918
    Mike, I have said that the senario with the "revenuers" coming in to look at the A&D book could happen if a state got wise and felt they were losing sales tax money. One problem though, I do believe that ATF / Law Enforcement is the only agency that is legally allowed to view that book? Would it not take a change in the law to allow a Department of revenue to inspect this book?

    Just another "loophole" for the anti's to campaign on.

    Scott
     
  11. grnberetcj

    grnberetcj Active Member

    Joined:
    Jan 29, 1998
    Messages:
    5,680
    Don...my condolences!

    I'm sure Michigan is a nice...but their taxation would make me want to see it in my rearview mirror.

    Curt
     
  12. BIGDON

    BIGDON Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    6,625
    Location:
    Michigan
    Curt; It is one of the reasons the recession started 2 years ago in this great state. Taxation policies have helped drive industry and work force out of the state. Our democrat female governor wants to add more taxes to fix the problem. If I was 20 years younger I would be out of here, to many opportunities elsewhere.

    Don
     
  13. pendennis

    pendennis Well-Known Member

    Joined:
    Jul 26, 2007
    Messages:
    1,567
    Location:
    Southeast Michigan - O/S Detroit
    There are two different taxes involved here. Sales taxes are collected at the point of sale, usually by the retailer. Use taxes are collected by states for consumers using a product in that particular state.

    If you reside in a state that has sales and use tax collection, you are liable for the use tax payment to the state from any item(s) which are deemed taxable by state law. It is also entirely possible to buy something for use in one state and not have tax due even though that item is taxable in another state. Local retailers are required by law, to collect sales and use taxes at the point of sale. However, a gun dealer may not be required to collect use taxes on a courtesy FFL transfer. It all depends on the state law. If you're a retailer, and don't know, check with your CPA or tax attorney.

    On catalogue, web, and other remote purchases, the consumer is always responsible for remitting the use tax to the state, although purchases from out-of-state, where the seller has a "brick and mortar" presence, have taxes collected by the retailer in most cases. There are also some companies which voluntarily collect use tax for states.

    The taxes are usually reciprocal. That is, if you paid 6% sales tax in a state, and your home state charges 6%, the taxes are considered a wash. However, if there is a difference, technically you owe the difference if your home state happens to be higher. The catch here is state governments' inability to collect the difference.

    In Michigan, there is a line on the state income tax form for "fessin' up" for any out-of-state purchases. You can claim anywhere from $1 and up, and remit the amount due when your state income taxes are due.

    If you buy a gun at a gun show, sales taxes are usually collected, sometimes indirectly. The seller usually pays sales taxes based on the sales volume for the entire show. That is if he sold $10k, and the rate is 6%, he owes $600 to the state. Sometimes the state "revenooers" collect before you close for the weekend, and have a chance to get across the state line.

    Best,
    Dennis
     
  14. whiz white

    whiz white Strong Supporter of Trapshooting Banned

    Joined:
    Jan 29, 1998
    Messages:
    4,771
    Location:
    Rapid City SD
    Just assume the price you paid for the gun included sales tax, and then then seller has the responsibility for paying the tax.

    I have a sales tax license and FFL. It is not uncommon for a shooter at the Grand to buy a gun from someone like Giacomo, a Perazzi.

    These shooters have my permission to have the gun shipped to me for their pickup. I have no idea of the price paid, nor do I care. I am merely serving as the LEGAL recipient who will enter that gun into my PFRB to follow all BATF requirements. Since no money exchanged at my location the actual "Point of Sale" took place at the Grand. Therefore, I am not responsible for tax collection. The buyer "should" send the state some sales tax money, if none was paid at the time of purchase. The state, however, really has no way to check, unless they peruse my PFRB.

    Whiz White
     
  15. front242

    front242 Member

    Joined:
    Nov 17, 2006
    Messages:
    170
    Location:
    California
    Here in California The sales tax is collected at the FFL on the receiving end. I bought a gun from out of state on the net and had to pay sales tax here when it arrived.

    FWIW

    F242
     
Thread Status:
Not open for further replies.