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Another stumbling block for the FFL dealers.


Quick Draw Granpaw #48525

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That's exactly what it is...think about it, sales are going on and neither the state where the sale occured nor the state where the consumer is located are collecting any revenue on that sale.

 

And yes, Washington is collecting taxes on gun transfers too: Washington gun sales

 

:FlagAm:

 

The Texas comptroller estimates that Texas lost $600 million in taxes on Internet sales (they don't have an estimate that I have seen for phone and catalog sales). The state projects a budget short fall of $21-27 BILLION in the next session. Although Internet taxes are regulated at the federal level, the states can enforce a USE tax on consumers for the same amount.

 

What Washington state is doing is going after high dollar stuff with a use tax on the combined value of the guns AND all shipping and insurance involved in the transaction. The FFL dealer becomes a pooled collection point for the taxes. That beats chasing the individuals involved in these transactions.

 

The free ride on the Internet is coming to an end. Buy local if you can.

 

Olen

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That's exactly what it is...think about it, sales are going on and neither the state where the sale occured nor the state where the consumer is located are collecting any revenue on that sale.

 

And yes, Washington is collecting taxes on gun transfers too: Washington gun sales

 

:FlagAm:

Wow, we agree, see post #5.

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Here in Massachusetts, we have a, I think it is currently, 6.25% sales tax on items purchased here in the state.

 

We also have what is called a "use tax" of the same 6.25% that if you purchase something out of state, say in NH that has 0% sales tax, you are supposed to report the sale to the state and pay the use tax. If you buy it in a state that has a sales tax of, say, 3%, you can deduct that from the use tax.

 

Mass has tried to get NH merchants to collect Mass sales tax on things sold to Mass residents, and merchants in NH have told the PRM* to shove it, and IMO, rightly so. There have even been court rulings that have told Mass they they can not do this.

 

As far as the use tax goes, it is widely ignored. Most people don't even know that it exists.

 

The problem alluded to in the original post sounds something like a use tax to me. I don't see how though the merchant can be told to enforce it.

 

*People's Republic of Massachusetts.

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Here in Massachusetts, we have a, I think it is currently, 6.25% sales tax on items purchased here in the state.

 

We also have what is called a "use tax" of the same 6.25% that if you purchase something out of state, say in NH that has 0% sales tax, you are supposed to report the sale to the state and pay the use tax. If you buy it in a state that has a sales tax of, say, 3%, you can deduct that from the use tax.

 

Mass has tried to get NH merchants to collect Mass sales tax on things sold to Mass residents, and merchants in NH have told the PRM* to shove it, and IMO, rightly so. There have even been court rulings that have told Mass they they can not do this.

 

As far as the use tax goes, it is widely ignored. Most people don't even know that it exists.

 

The problem alluded to in the original post sounds something like a use tax to me. I don't see how though the merchant can be told to enforce it.

 

*People's Republic of Massachusetts.

 

H.K. don't you mean *The Commiewealth of Massachusetts

 

Six-Shot

"Live Free or Die"

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It's a Ca. thing. :angry: Includes ANY gun shipped here ;)

Cheers,

LG

 

Yup - going to send a Winnie 94 to my brother via an FFL in CA and was told I needed to include a receipt for the purchase price....hmmmm, I think it was sold to him for $1 ;)

 

 

 

GG ~ :FlagAm:

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Standing between a government and their taxes is like standing between a mama grizzly and her cub....it aint gonna end well! The issue is (as California sees it), that transaction (transfer) is happening in the state (the paperwork and transfer is being done face to face in state). In effect, the California FFL is acting as the agent for the out of state FFL. In their view, its not the same as a normal out of state purchase (where the item is simply mailed to the buyer). In these hard times, states are looking for every penny they can lay hands on and its no surprise that a state would try this.

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This is a state sales tax issue and not an ATF issue but it sure effects FFLs

You are exactly keerect, GCK. As many have noted the sales tax is not avoided when the sale is made. The buyer is legally obligated to report the purchase in every state in the US and pay the taxes due on receipt of the goods in their state. Just that no one actually does it.

 

So the states are getting smarter and putting pressure wherever it can be applied. There is no where easier to apply it than on license holders. FFL's have no choice but to comply because the papertrail can't be avoided.

 

The similar scenario is true with automobile/bike/boat/RV purchases. They require licensing and don't really care where you bought it. When you bring it to the DMV you're going to pay the taxes.

 

Get ready! This is all coming to a state near you!

 

EDIT: if you try to report the purchase of a car/etc. (anything with a book of values) they'll just apply what the book says. That will happen with guns eventually as well.

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This very true sir but if the tax has been around for quite awhile...Why now are they now enforcing it...There is the possibility that there could be some more coming down the line...

 

Texas Lizard

 

When money is rolling in Government don't care about the small change. When the Carpetbaggers perks are threaten then the small change does matter!

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To all the folks who took the time to reply

with all the helpful information I thank you.

QDG/Mike :FlagAm:

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That's exactly what it is...think about it, sales are going on and neither the state where the sale occured nor the state where the consumer is located are collecting any revenue on that sale.

 

And yes, Washington is collecting taxes on gun transfers too: Washington gun sales

 

:FlagAm:

 

You seem to have a pretty good handle on this so pardon the question for being dumb but this link says this is a use tax and unless one can show tax paid to Washington the Washington dealer (FFL) must collect the tax, so if a Washington resident buys a firearm in Idaho, pays the state tax there and has the gun shipped to a Washington dealer for background checks do they have to pay Washington a tax as well?

 

Regards

 

:FlagAm:

 

Gateway Kid

 

PS - Wow a whole bunch answered before I even typed Thanks all

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