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Recieving Dealer


Timber Rattler

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Rattler, I think it just depends on your state laws. Check with your state comptrollers office. If he/she says no, print out the answer & show it to the dealer who's charging tax. If the answer is yes, keep yer yap shut. :blink::rolleyes: Just funnin.

 

Texas does not charge sales tax on out of state purchases whether by phone, mail or online, unless the company has a retail outlet in Texas such as Sears or JC Penny.

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In California, if he is charging state tax then he is stealing form you. He never owned the gun, how can he charge tax on it? My FFL says the same thing. When she first started she charged tax and then later when she asked the state tax guy how to pay it, He said "stop doing it".

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:rolleyes::wacko::ph34r::ph34r::FlagAm:

I got thiis answer directly from the our Dept of Revenue. I keep a photocopy of that letter (from the Dept of Rev) in my files for customers who don't understand the deal.

 

The receiving dealer isn't supposed to charge the sales or use tax on the actual firearm sale.

But he IS supposed to charge the tax on a "shipping/handling commission" if he charges the receiving customer for that.

 

Sticky situation. Internet purchases fall through the tax man's grip and they don't like it.

 

Mustang Gregg

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How can you "sales tax" a service - shipping and handling? This does not make sense. Labor is not sales taxable - neither is shipping.

 

Not shooting the messenger, Pard, but it does not make sense. I can understand if the receiving state wants the sales tax revenue (if no sales tax collected in the selling state) since the transfer occurred in their state, but shipping, handling, and services (commissions) should not be sales taxable. Tax on labor is charged as income, and shipping is not taxed at all.

 

You mean that Nebraska sales taxes labor and shipping? Don't let Virginia find out about this, they like to tax everything. They probably haven't got wind of this scam yet. :rolleyes:

 

MJJ

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:rolleyes::wacko::ph34r::ph34r::FlagAm:

Nebraska started charging sales/use tax for labor about 10 to 15 years ago.

I didn't like it.

Still don't. :angry:

 

Mustang

 

www.wildwestarms.net

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MJJ, "How can you "sales tax" a service - shipping and handling? This does not make sense. Labor is not sales taxable - neither is shipping."

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I reload ammunition for a living. This may come as a shock to you. Reloaded ammunition is a labor intense service and yes, I have to collect sales tax on the total amount of the reloaded ammunition including the labor and turn it in to the "State Board of Equalization". The tax board.

 

Also when it comes to taxes, all ammunition I load and sell whether using new or fired brass that the brass was not the customers brass has a required 11% federal ammunition tax due as soon as the rounds fall off the press. That tax is included in the sales price and then state sales tax is added to that.

 

Here in California where I am, ammunition can carry as much as 19.0875 percent in federal and state taxes. This is the reason I do not stock brass. If a customer wants new ammunition I have them order new brass and have it sent to my shop to be "reload". It is not my brass so they save 11% in tax cost up front on what would be new ammunition because it's their brass...Not mine. They can do the same by providing fired brass. And I don't have to keep written federal records on ammunition sales that included brass I owned, new or fired.

 

This federal tax is required nation wide due at the point of completed assembly.

 

Shipping and Handling is suppose to be added to the total after taxes are included here in California. (S&H non taxable)

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Something of interest maybe....

Internet sales. States are starting to write laws that will tax internet sales shipped in to and for use in the state. The tax will be collected by the seller no matter what state they are in. A business tax form is going to get itemized and very long.

 

Example. Texas has already put in place an internet sales tax. If you sell and ship to Texas and have a local presence in Texas, you have to collect sales tax using the Texas tax schedule.

 

"Local presence" defined. What if you don't have a local presence in Texas. It was defined as any presences. Example. If you have an online store and use Yahoo as your provider or host, you have a local presence because Yahoo has servers in Texas which your store service uses whether you know it or not. This is Local Presence.

 

This is one of the things people in government are doing to try and squeeze every penny they think they can from the public because the government is broke by and broke by their hand.

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Cliff Hanger:

 

If I understand you correctly, you create a product - reloads or "new" ammo. You then levy a sales tax on the finished product which includes labor. This is true of any product - it's value includes labor to which sales tax is assesed. Then to add insult to injury, the Fed's add a tax which increases the cost to produce your reloads, which again increases the cost of the product and is sales taxed. Again, still normal cost of doing business. It sucks, but that's another story.

 

If I produce beer. the cost of materials, labor, license fees, federal, state, local fees and taxes paid, profit margin equals final price - sales taxable. If it requires a licensed broker to fill out paperwork to transfer ownership, labor not taxable (except in Nebraska). If I ship the beer, shipping not taxable.

 

As an FFL holder, I provide a service only - no product - I process a form - straight labor - not taxable (except if you live in Nebraska - feel your pain Mustang Gregg). Shipping costs not taxable.

 

Many states ARE trying to close the internet "no sales-tax loophole" cause they are loosing HUGH amounts of revenue. How they are going to collect taxes in the "transfer to" state will be a problem. States don't want to collect taxes for other states. I certainly don't want to figure out sales tax for each state and mail it in to them. Collection will have to be at the point of transfer - but it was not bought there, it was bought out of state. What a tangled web ....

 

We taxpayers never get a break. I guess we need to sit down, drink that beer I just made, and call it a day.

 

Best to you all.

 

MJJ

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[]

 

In West Virginia they charge a six percent Sales Tax on the FFL Transfer Fee. If the Transfer Fee is $25, WV charges 6% for a Total of $26.50.

 

Lone Rider

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Here in Pa. it's known as a " Sales and Use " Tax. If you purchase a product, that falls under the " Sales " category. If you purchase a service, then the physical service falls under the " Use " category. Had worked in the repair business, parts were taxed under the " Sales " category as they were tangible property, any labor was taxed under the " Use " category. A recent example:

 

Purchased an item from Cabelas, internet order:

 

Item cost 15.98

Shipping 5.95

Total 21.93

Pa. 6% Tax 1.32

Total 23.25

 

Note that the 6% tax was figured on the 15.98 product amount, and 6% was assessed on the 5.95 shipping cost as the shipping is considered a " Use ".

 

Ain't no way around the Taxman.

 

Yours. Nota John

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How can you "sales tax" a service - shipping and handling? This does not make sense. Labor is not sales taxable - neither is shipping.

 

MJJ

This is entirely in the hands of the State and the receiving FFL being current on the law. In Washington state the law was amended so that the FFL has to collect tax on the transfer and the selling price of the firearm(s). If no receipt on a piece then the MSRP or book value.

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I think I'll stay in Montana...NO sales tax yet...key word yet.Seems we have some elected officials that think we should have one even though it has been voted down in every ballot it came up in.When I do a transfer I charge a flat $15.Having a customer fill out a form provided by the feds and making a call to an 800 number isn't that labor intensive in my view.

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Yep. Montana is looking pretty good - if it wasn't so cold. :FlagAm:

Taxing shipping. Taxing labor. I always thought a "use" tax was levied when you rented something - you didn't buy the cement mixer, you just rented it, so you paid a sales tax on the use of it. I have not heard of taxing labor - take your car in for an oil change, you pay tax on the oil and filter, disposal fee assessed, but no tax on the labor. Tax on the "use" of your labor? Very creative. Another way to relieve us of our hard earned money. And it is only going to get worse.

I just have not heard of this before, pardon my ignorance.

 

See you in tax court!

 

MJJ

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