Posted: 5/1/2005 8:50:09 AM EDT
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Does your dealer charge you sales tax on a FFL transfer from a private sale? I was wondering if your dealer charges you tax on a private sale when you have a firearm shipped to them to transfer to you? I know a dealer who charges a straight $25 to do the Fed & State transfer & another who charges sales tax on the private sale fee! I don't mind paying my dealer a fee for his service but, if I buy a firearm from a private party, they are not in the business of firearm sales, then it is just personal property being liquidated! The tax has benn already paid, It shouldn't be taxed again!(IMO) If I was purchasing from a dealer then I would believe tax is warranted! I don't like paying tax on a transfer & not getting a reciept for it, I have had 2 dealers do that for firearms & accessories.If he is gonna pocket it , I would prefer just the shop just tell me the transfer fee is a precentage of the sale price. Members & Dealers, Your thoughts? When I was a dealer I didn't charge tax for a transferees purchase price, just tax on the service of the transfer to keep the system happy! One final question, Anybody know any good dealers in Connecticut to do transfers? |
| I am a dealer. I charge tax on the transfer fee; more accurately, the tax is built into the transfer fee itself. And yes, I give receipts for everything. If the gun comes from a wholesaler and charged to my account with them, the buyer pays tax on the whole deal. |
Why do you charge tax on the transfer fee, is it required?? |
Now this is the way I thought it is supposed to be! |
Yes. Sales tax is tax on goods and services in NY. Transfer is a service. |
Hmmm interesting, I wonder what it is here in Wisconsin. I'll have to ask someone... So ya'll have to pay sales tax when oyu go to the doctors office? thats gotta suck. |
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Are people talking about two different things in this thread? Paying sales tax on the transfer fee (which may actually be required in some states, as TC556guy pointed out). versus Paying sales tax on the price of the firearm (which seems inappropriate for a TRANSFER, but entirely appropriate for a SALE, even if the rifle was ordered from out of state). |
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Yes! I just bought a Pedersoli Sharps 1874 45-90 Billy Dixon from Buffalo Arms in Idaho, I sent a check for the purchase in full. It was shipped to my dealer in Arizona for the FFL transfer. He charged me $25 dollars for the transfer and another $160 sales tax on the rifle - ouch.... At least he didn't charge sales tax on the transfer fee or the shipping costs. |
Call the State tax board, he is ripping you off and I would bet pocketing that sales tax $$ |
+1 If he's charging sales tax then it should only be on the TRANSFER FEE as ardoc said....which would be a couple of dollars depending on the sales tax %....he totally pocketted your 160$. |
I would have reported the guy BEFORE I paid him........ |
Went with a friend once to pickup a rifle. The guy that was doing the transfer rings up the register after he did the NCIS and everything and says "okay that will be $85". Our was responce was "what? your transfer fee is $35!". He said "Yea then theres tax, you gotta pay tax for stuff you buy". I knew we were getting ripped off. The owner of the store argued with us for about 45 minutes. He compared it to buying a used car. We we teenagers so I guess he though he could pull a quick one on us. I said "Your trying to rip us off, you didnt sell him anything, you can charge tax and your transfer fee of $35 and thats it". He then completely flipped out and tried to grap the rifle and said "Thats it im shipping it back". Finally we said fuck it well pay for it because we had been waiting so long for it and filed a complaint. Either way we would lose out becuase we would have to pay the guy we bought it from for shipping again and wait another week we would have probably only saved a few bucks. We really were consifering leaving $35 on the counter and walking out with my firends rifle, but we decided thats probably not the best thing to do in a gun store right? I know any other bussiness it would have been the thing to do. |
| The transfer dealer is providing a service. Unless specifically taxed by the state (providing a service), there should be no sales tax charged. Ask teh dealer if he is paying the sales tax to the government or if he is pocketing the cash and just passing off as sales tax. Another route is to ask your state revenue department. |
No you don't pay sales tax on medical/dental services. There are other exemptions to tax on services as well. You are required to pay sales (use) tax on out-of-state purchases (including Internet sales) in NY as well as some other states. A NY dealer however is not permitted to collect it at the time of purchase. My dealer includes the sales tax as part of the $25 transfer fee. |
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OK - I just checked the AZ Department of Revenue web site. Out of state purchases ARE subject to State Use Tax. AZ has a Transaction Privilege Tax (sales tax) and/or a Use Tax. Since I did not pay Sales tax or Use tax when I bought the rifle out-of-state, I am liable for paying the Use Tax. The following excerpts are copied from the AZ Department of Revenue web site, pulication 610: Difference Between the Transaction Privilege Tax and the Use Tax. The transaction privilege tax is imposed upon income or proceeds derived from engaging in a taxable business within the State of Arizona. The use tax is imposed upon the purchaser of tangible personal property which is used, stored, or consumed in Arizona when the sale was not subject to the transaction privilege tax. Out-of-state retailers or utility businesses that sell to Arizona customers are required to collect the Arizona use tax and remit it to the department. of selling tangible personal property (casual sale). Who Pays Use Tax? 1. Any person who uses, stores or consumes any tangible personal property upon which tax has not been collected by a retailer shall pay use tax. 2. An out-of-state retailer or utility business making sales of tangible personal property to Arizona purchasers must register with the department for the collection of the use tax. 3. An Arizona purchaser is liable for use tax on goods purchased from an out-of-state vendor that did not collect the use tax. 4. Arizona purchasers are liable for use tax if they purchase goods using a resale certificate, and the goods are subsequently used, stored or consumed in Arizona contrary to the purpose stated on the certificate. 5. The use tax also applies to purchases on which another state's sales tax or other excise tax was imposed if the rate of that tax is less than the Arizona use tax rate. |
