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Posted: 9/29/2005 11:40:52 AM EDT
Hi... I am wondering why my FFL is INSISTING he has to collect tax on my gun purchase. I didn't purchase the gun from him, he is merely providing a SERVICE by transferring the gun to me. I bought the gun on gunbroker from a guy in KY. So why should I have to pay MD sales tax ??? Please educate me if you know the facts, I am a newbie and I am very confused by this. I buy almost everything from the internet and no one else tries to pull this.

Thanks, IAC4
Link Posted: 9/29/2005 4:40:47 PM EDT
i would find another ffl. its also illegal, he can not collect tax on a product he did not sell himself. i would reccomend if he continues to try to force you to pay md taxes you inform him you are going to speak to the local bbb, the atf&e and the states attorney. i promise he will change his tune. DO NOT pay him any extra money other than the transfer fee, and back ground check.
Link Posted: 9/29/2005 5:04:35 PM EDT
He is breaking the law. Tell him you paid $1 for it and flip him a nickel.
Link Posted: 9/29/2005 5:18:10 PM EDT
Hmmm... I thought so !! Could anyone point me to any type of documentation or something I can show this guy. He is hardcore stubborn. I can't find any honest FFL's in my area. It sucks. I am a newb so they totally see me coming also. If someone could help me out with some type of regulation or something I could quote it would be great. What also would be nice is if someone could refer me to an FFL that is not gunna give me problems.

Thanks, IAC4
Link Posted: 9/29/2005 5:59:52 PM EDT
[Last Edit: 9/29/2005 6:00:44 PM EDT by 9supercomp]
I'm not completely sure, but I think Maryland does have a law requiring tax to be collected on these transactions. It's just that noone does it.

If you every moved into the state, you have to pay a 5% sales tax on your vehicles value (BLUE BOOK) in order to get tags?????????????????????????????????????????­??????????????????
Link Posted: 9/29/2005 6:33:13 PM EDT
[Last Edit: 9/29/2005 7:36:26 PM EDT by brillo]

Originally Posted By IAC4:
Hmmm... I thought so !! Could anyone point me to any type of documentation or something I can show this guy. He is hardcore stubborn. I can't find any honest FFL's in my area. It sucks. I am a newb so they totally see me coming also. If someone could help me out with some type of regulation or something I could quote it would be great. What also would be nice is if someone could refer me to an FFL that is not gunna give me problems.

Thanks, IAC4



[EDITED BECAUSE I FOUND CLEARER LANGUAGE AT THE COMPTROLLER'S WEB SITE]

From the Comptroller of Maryland:

"Every state that has a sales tax also has a use tax. Every time you purchase taxable tangible goods, whether in person, over the phone, or on the Internet, the purchase is subject to Maryland's 5% sales and use tax if you use the merchandise in Maryland. State sales taxes are applicable to purchases made in Maryland while the use tax refers to the tax on goods purchased out of state.

Businesses in Maryland are required to collect sales taxes from you whenever you make a taxable purchase. When you purchase property from businesses located outside of Maryland, they are not required to collect Maryland's sales tax unless they have a physical location, or deliver services, in Maryland. Also, you are not required to pay the sales tax in the state where the business is located. However, you are required to pay the 5% use tax directly to the Comptroller of Maryland by filing the Use Tax Payment Form by the appropriate due date."

Present the FFL with a completed copy of the Consumer Use Tax Return For Out-of-State Purchases, along with a copy of the check which you have, of course, previously sent along to the Comptroller.
Link Posted: 9/29/2005 7:33:32 PM EDT
[Last Edit: 9/29/2005 7:46:37 PM EDT by IAC4]
Sounds like I'll just let him collect the tax hen
IAC4
Link Posted: 9/29/2005 8:08:49 PM EDT
I would tell him that you will take care of it on your own.
Link Posted: 9/29/2005 10:13:17 PM EDT
He is a PITA so I will just pay it and try to find someone else. Any suggestions for an honest FFL in AA county area?

IAC4
Link Posted: 9/30/2005 3:07:00 PM EDT
yet another reason to move out of md to a free state. i pay $20 for the transfer and $2 for the background check. thats it. if its a long gun next time just go out of state, it will save you an azz load of problems, or have it transferd to a va/pa/wva ffl then you wont have to pay taxes.
Link Posted: 9/30/2005 5:59:24 PM EDT

Originally Posted By IAC4:
He is a PITA so I will just pay it and try to find someone else. Any suggestions for an honest FFL in AA county area?

IAC4



I'm curious....what dealer are you using???
Link Posted: 10/2/2005 6:45:35 AM EDT

Originally Posted By X_Ring:

Originally Posted By IAC4:
He is a PITA so I will just pay it and try to find someone else. Any suggestions for an honest FFL in AA county area?

IAC4



I'm curious....what dealer are you using???



+1, so I know to never use that dealer.
Link Posted: 10/3/2005 3:19:42 AM EDT
FYI - I had the same question little over a year ago, and I sent email to the Comptroller of Md and received a reply that basiclly said the FFL is required to collect sales taxes on any purchase that is on his books. Basiclly if he does the FFL paperwork, he has to collect and turn in sales tax on the merchandise to MD. I believe your FFL dealer is correct collecting the taxes... That being said, you can find other FFL dealers that do not collect taxes. I think it is an interprutation of the rules issue that has not been fully explained or made a big deal of yet. Find those few dealers in error while you can !

Link Posted: 10/5/2005 7:24:21 PM EDT
I had this question a few months ago. I forget who told me this, but as I recall it was someone knowledgeable. In effect, it said that they should collect tax on their transfer fee, nothing else. So %5 on $20 or whatever the cost.
John F.
Link Posted: 10/9/2005 7:15:24 AM EDT
My FFL collects the sales tax on my out of state gunbroker purchases. He hates it. Says he's feels like he's working for the state as a tax collector. Of course everyone hates the tax colllector......... This FFL is a very honest person and I don't believe for a second that he is doing it because he wants to.
Clearly, the state of maryland is behind this scam.
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