Had a question, was hoping someone could help me with.

I bought a used firearm from a local individual up in Snohomish County back in the summer. When I purchased it the lady at the counter gave me this big spiel about how I had to pay Sales Tax on it with the state gov. She gave me a form with links to the gov website then told me I'd be hit by a big fine if I didn't do it as they declare it with the gov.

This was for a pistol manufactured in 2013 that most likely was already purchased in WA at some point and had tax previously paid on it.

Fast forward, I went to some other stores that told me they don't require people to pay tax on private sale transfers as the tax has already been paid. I even had a friend send me a Q/A and from Thurston County about how they don't require tax.

Am I on the hook for this? Does this change county by county?

Thanks for the clarification.

There's no sales or use tax on private transfers between WA residents. This is explicitly called out in 594.

There is no use tax collected by the FFL when it is a private transfer, meaning between two unlicensed parties.  See this notice from WA DoR:
http://dor.wa.gov/Docs/Pubs/SpecialNotices/2014/sn_14_Firearms.pdf

Almost correct. The dealer isn't required to collect the use tax on P2P transfers, but the buyer is still supposed to send in the tax on their own. I-594 didn't remove your obligation to pay the tax, just removed the dealer's obligation to collect it.

As to the situation in the OP, it doesn't matter if it was already taxed. Each time tangible property changes hands, the state expects to receive Use Tax. Bought a couch at a garage sale for $100?  The state expects you to send them a check for $9.50. Sell it to your neighbor 2 years later for $50?  Yep, they're suppose to mail a check to the state for $4.75.   Nobody does that of course....

Yeah, we're all climbing right on that

Clearly!  

It is also why dealers were forced a few years ago to start collecting it on behalf of the buyer and remitting it to the state.   My part time, home-based operation sent in over $15,500 in collected Use Tax for 2015.  You have to figure that is just a fraction of what was collected by dealers across the state.  And you can also bet the self-reported and paid portion of that tax before dealers had to start collecting was probably 1% or less.....

So when the store tells me, we send these in and they will go after you if you don't pay tax. . . . that means I should probably submit the form and pay my 50 bucks?

I just don't want to get hit with a big fine later. I mean I'd rather not pay 50 bucks but that's better than a 100 dollar fine down the road.

That store is full of shit. I don't know what their game is, but you find me one person who has had the state come back to them about use tax on a private transfer, and I'll give you a Pmag.  Hell, make it five.

AFAIK, shops don't send anything in that would lead the DoR to come knocking on your door.

I like those odds

We don't send anything in to the DOR that notify them. The possibility exists that during an audit, they make a list of private party transfers and follow up with the buyers to see if they paid their taxes. Also, the DOL gets a copy of the pistol transfers, and those have a box to check if it is a private party transfer. I don't think the DOL can freely share that information with the DOR, so that should be limited exposure. But who knows what information agencies share with each other.

Also it is likely that during an audit, the state won't pick people to actually follow up on based on the generally small amounts.  But they could easily mail you an official letter saying taxes are due, at which time you could choose to ignore it or pay it.  The unknown being the consequences of ignoring it.  And does paying it one time garner attention from the DOR, looking for more checks in the future?  Probably......

I've not heard of a single instance of the state asking a private party to pay up after the an audit or transfer however, so it would seem your odds of winning the lottery are indeed higher....

Look, I get it, taxes suck. And our politicians are very poor stewards of our money. But as a state we rely on sales, use, B&O, and property taxes to fund everything. What we don't have is an income tax, and I'd like to keep it that way. Too many tax cheats and scofflaws will make an income tax a reality sooner rather than later. They are getting closer everyday to adding taxes to internet purchases too.

And finally, data mining techniques are getting very sophisticated, not sure I'd be admitting to tax avoidance on an open forum. At some point, some rookie will want to make a name for themselves at the DOR......

Last time I heard of the state actually going after anyone was back in the 80's when I lived in WA and they went after a guy buying cartons of cigs in OR and bringing them back to WA.

I've heard of this, along with legends about cops"busting" people coming back from shopping in Portland...But how could the five oh ever prove that you weren't headed home to pay the tax?

Jek,

If I remember right that case was thrown out, because you have a certain amount of time to pay the taxes after you make a purchase in another state and the State Patrol stopped him in the time frame he was allowed to have the so called contraband.

I appreciate your insight.

Huh. I wondered about this too. Fairly new in this state but have had to pay tax to the shop for an FFL transfer from out of state and a private party trade.

Honestly, as much as it would cost me, internet sales tax would sure help local businesses. Especially local hobby stores, local sporting good stores, local gun stores, local car audio stores, etc etc.....

That's right.... USE TAX is what it is called.  The FFL is not required to collect the "use tax" under the private to private under that initiative.

Ever since the Dept of Revenue cracked down on out of state firearms buys/transfers.... basically stating sales/use tax has to be collected on the selling price AND shipping by the transferring dealer..... buying out of state has lost it's luster, in my opinion.  Most handgun shipping is $25.00 (or more), transfer fee, say $25.00.....  when tax wasn't factored, cool.... now add the use tax.... damn.  Only time I buy online is if it is a VERY good deal or something that dealers have had a hard time finding for me or can't find locally.  Or something I really want....

Do I feel bad not paying use tax on stuff..... what do you think.  I saved a LOT of money by buying out of state on guns before the use/sales tax requirement.  Use to be $50 to 100 or more then listed local prices and that was shipped and transferred.

Don't get me wrong, I like supporting local dealers.  But I do it on my own terms.....

Not really.

Universal 'Internet Sales Tax' would help large multi-state retailers (Who are the ones actually campaigning for it) like WalMart who have to collect sales tax in every state already because they have stores in every state. Even Amazon has to collect tax from many states, because of their warehousing strategy (if A has a warehouse in a state, they have to collect tax there)....

Those small local businesses, if they want to, can currently sell online to 49 out of 50 states without their customers paying state/local sales tax. 

The convenience of not having to spend time shopping is far more of a factor than 'not paying sales tax' in why people would rather go to Amazon than drive into town, pick up your purchases, and drive back if the purchase is not a need-it-NOW item....

For something that's $20, sure...But if I'm buying a $1500 TV? Yeah, kind of a big deal at that point.

Lets see....

Sales tax on a private purchase is technically a "use tax"...

Now, a "universal internet sales tax"..... if this was a Federal thing, it would open up to a nation wide sales tax.  Could be good (I know), or bad.... BUT, for states with a sales tax or income tax, it is more taxation.  Here, in WA, we have our state sales tax, local sales tax, county to make up the "total sales tax".  Adding "more" to that....from a nation wide sales tax... ack.

I have bought many of things via the net and had it delivered to the home vs driving all over looking.  If I know what I want, and do not need it right away... I will do that.  Especially if I can save a bit vs local (and sales tax).  

(Still trying to figure out how this question on sales tax on a private gun purchase got to an internet tax....)

I'm as confused as you are.

I bought a gun from someone locally and the lady at the counter basically scared me into paying tax. Then another local shop told me they don't even declare it and a friend of mine told me I "definitively" didn't have to hence I started the thread.

so here we are

The difference is, the shops I've done FFL transfers from actually collect the tax.

In this instance they want me to fill out a form, write a check, and send it in.

the form only asks for the model and the "code" of where you bought the gun so I'm actually confused how they could even link the two to be honest.

Tell them you're transferring it as a repair and problem solved.

At first I thought your recommendation was borderline illegal, but after thinking about it more, it is not even borderline illegal, it IS illegal.

How does that "solve the problem"?  Now you are asking the dealer to facilitate a transfer to what, an unlicensed gunsmith?  How would you then answer 11a on the form, the one that asks if you are the actual buyer/transferee?  If you are claiming you are just receiving it for repair, you would have to mark "no", since in theory you going to return it to the person you received it from.  Mark "no" and I can't transfer it to you.  Mark "yes" and now it is technically a straw purchase, since you said it was for repair, which means you AREN'T the actual buyer/transferee.

I'm not taking part in such a transaction, no way.

all of this crap is WAY to much work/thought...and one reason why my response to the UBC law is "fine, I'll just never sell a gun". Some day I'll have an arsenal that makes Feinstein cry herself to sleep. Almost do now, lol!

Tax Implications of Firearms transfers, WA Dept of Revenue

Here..... a PDF from the WA Dept of Revenue about this topic....

This is what my buddy sent me, and partially why I started the thread.