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Posted: 3/17/2002 6:27:56 AM EDT
For those of us who live in states that have a sales tax:

If you buy a gun through someone like Gunbroker.com or Auction Arms & the seller is in a different state, are you required to pay your state's sales tax when picking the gun up from your FFL dealer?

I'm guessing that you would, as the dealer is really doing nothing more than ordering a specific firearm at your request. He would be tax exempt, & as the transfer is going thru his store as a retail sale I'm assuming the sales tax would have to be applied.

Also - would the shipping charges be subject to the sales tax? Again, I am guessing that they would as the tax would apply to the total selling price, which would of course include costs to ship.

Can anyone who has purchased this way comment?

Link Posted: 3/17/2002 6:33:19 AM EDT
Kevinch,
I've bought a bunch of guns off the internet and have 'NEVER' paid sales tax on guns purchased out of state.

You should not have to pay sales tax.

Link Posted: 3/17/2002 6:38:05 AM EDT
[Last Edit: 3/17/2002 6:39:23 AM EDT by shaggy]
Kevinch-

Whether you pay sales tax depends upon who you paid for the gun. If you paid your local dealer to order a gun for you, essentially buying the gun from that dealer, you pay sales tax. If you paid an out of state individual or business for the gun which is then shipped to your local dealer to be transfered to you, you only pay sales tax on the goods or services rendered in state - the fee for the transfer. Shiping is the same way - if you paid your dealer for the shipping, you pay sales tax, if you paid it to an out of state entity, you don't.
Link Posted: 3/17/2002 6:56:09 AM EDT
If you send payment to the out of state dealer (the normal procedure), you don't pay tax to the out of state dealer OR the dealer that completes the transfer.

Link Posted: 3/17/2002 7:05:16 AM EDT
Technically, legally, you probably owe the tax.

Here's why:

Almost all states that have a sales tax also have what is called a "Use Tax". The purpose of this tax is to collect what you would have paid on all items that were purchased outside your state, but "used" in your state.

In Rhode Island, for example, there is an entire form that people are supposed to fill out that itemizes everything you have bought and not paid taxes on. At a minimum, you must fill in an amount (zero is what most people put), and sign it, so they can nail your backside to the wall if they find out otherwise.

All this chat about "Internet Sales Tax" is just over the issue of whether or not a state can force a business to collect sales tax for it, even if that business is out of state. However, the legal requirement has always existed for the individual to pay the tax, even if it wasn't collected by the seller.

Enjoy your gun!
Link Posted: 3/17/2002 8:11:32 AM EDT
Technically, the internet service is only putting the buyer & seller together. The sale is conducted through the usual channels (FFL dealers) after that. The internet part is irrelevant to the sale.
Link Posted: 3/17/2002 8:22:56 AM EDT
Link Posted: 3/17/2002 9:03:39 AM EDT

Originally Posted By AlphaBobRI:
Technically, legally, you probably owe the tax.

Here's why:

Almost all states that have a sales tax also have what is called a "Use Tax". The purpose of this tax is to collect what you would have paid on all items that were purchased outside your state, but "used" in your state.

In Rhode Island, for example, there is an entire form that people are supposed to fill out that itemizes everything you have bought and not paid taxes on. At a minimum, you must fill in an amount (zero is what most people put), and sign it, so they can nail your backside to the wall if they find out otherwise.

All this chat about "Internet Sales Tax" is just over the issue of whether or not a state can force a business to collect sales tax for it, even if that business is out of state. However, the legal requirement has always existed for the individual to pay the tax, even if it wasn't collected by the seller.

Enjoy your gun!



While most states have a use tax to make up for the sales tax lost on out of state purchases, it does not negate the fact that there is no sales tax due on a purchase directly from an out of state individual or business (even though the gun must actually transfer through an in-state dealer). More to the point, the in-state dealer should NOT be charging sales tax on such purchases. The state has no taxable base so either the dealer is either collecting and paying taxes he doesn't have to (wasting your money), or he's collecting tax monies which are not due and pocketing that "tax" money. Whether an individual pays any use tax, however, is the indivual's responsibility to honestly report and file.
Link Posted: 3/29/2002 10:16:04 PM EDT
im sure glad i live in a state that dont have stupid gun laws or sales tax.... Bluemax
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