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10/20/2017 1:01:18 AM
9/22/2017 12:11:25 AM
Posted: 8/19/2005 9:57:07 PM EDT
Is this right ?

Im in Ohio this transfer dealer tells me today that he has to collect sales tax on whatever gun I have him transfer. So I tell him the gun I want is in Texas so why would I have to pay you the sales tax if the money for the gun is going to the dealer in Texas? He tells me its a new Ohio law & he has to collect tax on whatever the gun cost me.


WTF I never heard of anything like that. I could see if he had to tax the transfer fee itself but why the hell should I have to pay him ohio tax on a gun I bought from a guy in Teaxas WTF!
Link Posted: 8/19/2005 9:59:03 PM EDT
[Last Edit: 8/19/2005 9:59:35 PM EDT by DK-Prof]
My guess - he's either an idiot, or is lying to you. (I've had dealers tell me that in MO - right before I laughed in their face and walked out)

As a distant third - it is POSSIBLE that states are starting to pass laws about this because of all the revenue they are losing from internet/catalog sales.
Link Posted: 8/19/2005 10:00:21 PM EDT
He's probably lying. I never buy guns in-state unless they're cheap or second-hand, b/c of tax. You may want to check it out with other dealers though.
Link Posted: 8/19/2005 10:00:28 PM EDT
That sounds like BS. But I don't know.

Everytime I buy something on the net, it will say "xx" residents apply x% sales tax. In other words, if you live in the same state as us, you pay the sales tax.


You should ask him for the specific statute.
Link Posted: 8/19/2005 10:01:31 PM EDT
Sounds like it's time for a new dealer.

20
Link Posted: 8/19/2005 10:03:41 PM EDT
I seem to recall hearing on Ohio radio that they were passing a law to collect internet sales tax.

I'd look into it further before I jump on the dealer. Nothing wrong with asking him to prove it to you since it would be a new law and you are a concientious consumer.
Link Posted: 8/19/2005 10:08:03 PM EDT
I used to be a dealer. The transfer is a service and as susch services are not taxable (in Colorado). So my transfer fee was a straight $30 with nothing else added. Check the difference between services and tangible property in Ohio. If services are taxable, then the tax is paid in the transfer fee. However, this wouldn't be the first time that a shopkeeper didn't know jack shit.
Link Posted: 8/19/2005 10:19:29 PM EDT


Damn... I pay $10 at my FFL holders place of business, and that is why he has seen my last 8 transfers unlike the other guy that charges $25 he only did one for me.

As for the original question hopefully it isnt true that would be totally lameass
Link Posted: 8/19/2005 10:20:45 PM EDT
They don't. He wants an extra percentage of take-home cash.
Link Posted: 8/19/2005 10:23:27 PM EDT
As far as I know...

In OH you don't pay sales tax on stuff bought for example online. HOWEVER. WHen you are filling out your state income tax form, it asks if how much $$$ you spent out of state so it can charge you state taxes on that stuff.

BUT! NO ONE ACTUALLY FILLS THAT PART OUT. Though you may be technically breaking the law. My Government teacher told us not to admit to anything...they have no proof
Link Posted: 8/19/2005 10:26:57 PM EDT
Ask him to produce a bill of sale.

If you pay HIM for the gun he can charge sales tax on the item HE sold.

If you paid the individual out of state you DO NOT have to pay sales tax. Problem is most states completely freak out retailers in regards to what they have to collect and this guy just may be wrong in "thinking" he needs to charge sales tax.

Now he can charge sales tax on the transfer itself which is a service.

Bottom line is, if he charges sales tax he needs to record the price of the gun as income. If he did NOT (because you paid the seller and not the dealer) then he should NOT charge you sales tax on anything but the transfer service itself.
Link Posted: 8/19/2005 10:29:01 PM EDT

Originally Posted By DK-Prof:
My guess - he's either an idiot, or is lying to you. (I've had dealers tell me that in MO - right before I laughed in their face and walked out)

As a distant third - it is POSSIBLE that states are starting to pass laws about this because of all the revenue they are losing from internet/catalog sales.

+1 in all respects, and leaning heavily towards 'he's ripping you off'.
Link Posted: 8/19/2005 10:39:13 PM EDT
Did you compensate him in any manner? Then he could, in certain states, charge sales tax on that. But not on the value of the firearm.

Link Posted: 8/19/2005 10:51:57 PM EDT

Originally Posted By SteyrAUG:

If you pay HIM for the gun he can charge sales tax on the item HE sold.



Yes, to whom did you make payment? That is, after all, the taxable event in question.
Link Posted: 8/20/2005 12:21:31 AM EDT

Originally Posted By nationwide:

Originally Posted By SteyrAUG:

If you pay HIM for the gun he can charge sales tax on the item HE sold.



Yes, to whom did you make payment? That is, after all, the taxable event in question.



The dealer in Texas is the one getting the payment for the gun. I dont know why this transfer dealer thinks I should have to pay sales tax in ohio when the money went to Texas.

Well if he is right about it then my days of gunbroker are over & from now on I will only buy from private sellers at shows. I pay enough damn taxes jeez cant a guy get a break .
Link Posted: 8/20/2005 7:11:20 AM EDT
Technically, under the Constitution, no sales tax can be charged for out of state purchases. The Supreme Hooded Clowns did rule that if the company you're buying from has a presence in your state, you can be charged. Of course, we all know the Constitution is hardly worth more than toilet paper anymore. What the State wants, they get.

I say the Ohio dealer is full of shit, and I'd find another one.
Link Posted: 8/20/2005 7:15:18 AM EDT
Sugestion if he insists he has to collect and can't show you proof of why get a reciept where he charged you for SALES TAX then contact the revenue department and send them a copy and ask them if it is legal for him to charge sales tax on the item. It may open a whole can of worms on his collection practices!
Link Posted: 8/20/2005 7:24:25 AM EDT
[Last Edit: 8/20/2005 7:24:51 AM EDT by nationwide]

Originally Posted By HunterGren:

Originally Posted By nationwide:

Originally Posted By SteyrAUG:

If you pay HIM for the gun he can charge sales tax on the item HE sold.



Yes, to whom did you make payment? That is, after all, the taxable event in question.



The dealer in Texas is the one getting the payment for the gun. I dont know why this transfer dealer thinks I should have to pay sales tax in ohio when the money went to Texas.



Allow me to be more direct with my question... WHO did YOU give money to???

Link Posted: 8/20/2005 7:26:11 AM EDT
Link Posted: 8/20/2005 7:28:37 AM EDT
[Last Edit: 8/20/2005 7:32:23 AM EDT by fizassist]
I think the current situation is OH (and several other states) is that you're supposed to report such taxes on your state income tax form. Other states have reciprocal agreements where the out-of-state seller actually collects the tax. You can bet your ass that the in-state FFL isn't turning that tax money over to the state, though. He's pocketing it.

ETA: As has been stated, this is all under the assumption that this really is a "transfer", i.e. you paid the out-of-state party directly. Then the in-state FFL is entitled to tax on what he sold you (the transfer cost) at most.
Link Posted: 8/20/2005 8:33:03 AM EDT
The Law in Alabama is that anything that is bought out of state for in state use, must have the Alabama state tax of 4% paid on it. That includes internet purchases and anything that you buy in another state and physically carry back into the state. You are supposed to declare the purchases on your income tax form and add the taxes to the total taxes that you owe to the state.
Link Posted: 8/20/2005 8:36:32 AM EDT
Yep he is full of sh*t

All you should pay is the transfer fee. I pay $20($10 if I bring coffee) to my FFL to do a transfer.

Hell tell him it is a gift from a relitive or tell him it cost $50

Otherwise I would ask him to show me this law.

FREE
Link Posted: 8/20/2005 9:13:29 AM EDT
[Last Edit: 8/20/2005 9:15:50 AM EDT by HunterGren]

Originally Posted By nationwide:

Originally Posted By HunterGren:

Originally Posted By nationwide:

Originally Posted By SteyrAUG:

If you pay HIM for the gun he can charge sales tax on the item HE sold.



Yes, to whom did you make payment? That is, after all, the taxable event in question.



The dealer in Texas is the one getting the payment for the gun. I dont know why this transfer dealer thinks I should have to pay sales tax in ohio when the money went to Texas.





Allow me to be more direct with my question... WHO did YOU give money to???




I paid the Texas dealer myself with a money order.
Link Posted: 8/20/2005 9:18:03 AM EDT

Originally Posted By HunterGren:

I paid the Texas dealer myself with a money order.



In that case, UNLESS Ohio did, indeed pass a "internet sales tax" law, you are being screwed by this dealer. But if he already has your firearm, I'd proceed with caution. You don't want him having any lapses of judgment due to anger at you.
Link Posted: 8/20/2005 9:33:42 AM EDT
[Last Edit: 8/20/2005 9:34:17 AM EDT by npd233]

Originally Posted By billclo:
Technically, under the Constitution, no sales tax can be charged for out of state purchases. The Supreme Hooded Clowns did rule that if the company you're buying from has a presence in your state, you can be charged. Of course, we all know the Constitution is hardly worth more than toilet paper anymore. What the State wants, they get.

I say the Ohio dealer is full of shit, and I'd find another one.



I think you worded it a little cloudy, but got the general gist of things. It is not specifically explained as such in the Constitution, but rather derived from case law based on the 14th A. Due Process clause. The precedent case was decided in 1967:

NATIONAL BELLAS HESS v. DEPARTMENT OF REVENUE OF THE STATE OF ILLINOIS

USSC ruled that individual States requiring their merchants to collect sales tax on purchases shipped across state lines created an undue burden upon interstate commerce.

An out of state dealer cannot charge you THEIR state's local sales tax OR YOUR state's sales tax on a purchase you make from them FROM out of state and have it SHIPPED to you in your state.

However, you DO owe YOUR state its sales tax based on the fair market value (i.e. what you paid) for the item. It is 100% YOUR responsibility to report the sale/pay the tax yourself. It is not your incoming transfer dealer's (NOR the State's) responsibility. Just like income taxes. It's YOUR responsbility to report income/pay it. Penalties exist for failure to do so.

Link Posted: 8/20/2005 9:51:30 AM EDT
As I said in my previous post the Ohio dealer might be correct. This is just a blurb and obviously isn't all the provisions of the Ohio law.

"Ohio is participating in the Streamlined Sales Tax Project. The SSTP is a multi-state initiative to make sales tax laws, rules, and systems more uniform across states and thus easier for vendors to collect states’ sales taxes. Ohio has changed some of its laws to conform to the provisions of the SSTP. This web page provides the latest information on those changes. The ultimate goal of the SSTP is to encourage out-of-state vendors – primarily catalog and Internet companies – to collect the sales tax of Ohio and other states. Ohio’s state and local governments lose an estimated $600 million annually on untaxed sales by out-of-state vendors."

tax.ohio.gov/channels/business/streamline_ohio_law_changes.stm
Link Posted: 8/20/2005 10:00:03 AM EDT
Who is this dealer, so the rest of us can avoid him.
In central Ohio - (Powell -Powder Room) they charge $20.00 for transfers.
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