Thread: WA transfers now subject to sales tax

The Washington Dept. of Revenue has determined that interstate transfers of firearms are subject to tax and the dealer must collect the tax from the buyer.

Is the transfer of a firearm subject to sales tax?

In an interstate transfer of firearms the Washington gun dealer is required to collect retail sales tax from the Washington resident on the purchase price of the firearm. The retail sales tax is collected from the Washington customer at the time the customer takes possession of the firearm. Sales tax is collected on the total selling price, including freight and/or delivery charges and other amounts added, such a an amount for insurance coverage.

If the selling price is not evident, it is up to the gun dealer to obtain this price by either requiring the purchaser to show the purchase price or to obtain that information from the out-of-state dealer. If, for whatever reason, the dealer is still unable to obtain the original purchase price, RCW 82.08.010 provides that the fair market value shall be used. It is the responsibility of the Washington gun dealer to determine the price in order to report and pay the sales tax due.

Well that sucks, but I'm not surprised. Gotta pay for all those entitlement programs.

I wonder if that will lower the legal transfers?

If the firearm is obtained by gift, the instate dealer is obligated to collect use tax on the fair market value of the firearm, unless the receiving person can document that the prior owner had paid retail sales or use tax on the firearm

What am I missing?

Sales tax on a gift just because it has to be transferred?

By that logic should a WA resident I sent a Christmas present to have to pay tax on it?

I find no hole in your logic. Would assume that it's correct. Unless firearm owners are being singled out.

Originally Posted by Dyjital

I wonder if that will lower the legal transfers?

Ya think

Originally Posted by Dyjital

I find no hole in your logic. Would assume that it's correct. Unless firearm owners are being singled out.

I doubt seriously this is a firearms issue. This is a revenue issue. WA state in a down economy is looking for revenue anywhere it can get it to fund it's social welfare and entitlement programs. Look for other fee and "revenue enhancement" programs to come down the pike.

Is Oregon next?

Originally Posted by Dan-Dee Sales, Inc

Is Oregon next?

Some of the left-wing dems here want a sales tax, but a majority of the party is pretty tepid about it. Kicker "reform" is the next big target.

We're most likely going to continue seeing big increases in government fees and reductions in service.

My understanding of this is that it is a change in the law per House Bill 1597 and does not become effective until July 1, 2010.

Does anyone know if I am correct or what? Some FFLs are collecting the tax now and some are not. Does anyone know the true story?

enjr4

Originally Posted by Bazooka Joe

The Washington Dept. of Revenue has determined that interstate transfers of firearms are subject to tax and the dealer must collect the tax from the buyer.

doing it for years now, just that your FFL is now following the law.

Originally Posted by Unka-Boo

What am I missing?

Sales tax on a gift just because it has to be transferred?

By that logic should a WA resident I sent a Christmas present to have to pay tax on it?

it is the law and has been for many, many years. If I drive to Portland and buy a washer/dryer and have it delivered I have to pay use/sales tax on it even though the purchase was in OR. If I pick the units up in OR and transport them myself I SUPPOSED to go to the Dept of Revenue and pay the WA use tax on them. You're supposed to do that for EVERYTHING purchased out of state (other than food). Been that way for YEARS and YEARS now but most people don't know it so it's largely ignored.

A few years ago WA state sent agents to watch people loading their cars/trucks in OR, they then radioed the info to waiting State Troopers who then stopped the vehicles and levied fines for not paying the sales tax!

Guess most people missed that, I've been around enough years to remember them, plus my father (as did I) worked for the State of WA.

Originally Posted by enjr4

My understanding of this is that it is a change in the law per House Bill 1597 and does not become effective until July 1, 2010.

Does anyone know if I am correct or what? Some FFLs are collecting the tax now and some are not. Does anyone know the true story?

enjr4

supposed to have been doing it for years now. My FFL has been doing it for years now also.

what about internet items? sales tax or use tax?

Originally Posted by Dan-Dee Sales, Inc

what about internet items? sales tax or use tax?

a "nexus" (storefront, office, warehouse or storage) in WA then , yes, you must collect sales/use tax from any WA resident.

Originally Posted by deen_ad

it is the law and has been for many, many years. If I drive to Portland and buy a washer/dryer and have it delivered I have to pay use/sales tax on it even though the purchase was in OR. If I pick the units up in OR and transport them myself I SUPPOSED to go to the Dept of Revenue and pay the WA use tax on them. You're supposed to do that for EVERYTHING purchased out of state (other than food). Been that way for YEARS and YEARS now but most people don't know it so it's largely ignored.

A few years ago WA state sent agents to watch people loading their cars/trucks in OR, they then radioed the info to waiting State Troopers who then stopped the vehicles and levied fines for not paying the sales tax!

Guess most people missed that, I've been around enough years to remember them, plus my father (as did I) worked for the State of WA.

I know it's supposed to work that way on purchased items, I was curious about gifts.

I believe I read somewhere if you do a transfer and the owner of the firearm can show that they paid taxes on it already, they don't charge for the WA tax. Am I correct about that?

They gotta find ways to raise taxes somehow...soon there will be new traffic laws that will make the cell phone laws look conservative.

It's going to be challenged in court.
1. FFL's are being singled out and expected to be Tax Enforcement Agents of The State. I'm told that this is not lawful. The law (actually it is just currently a "rule") is not being applied/enforced equally on all retailer/vendors, and that is against the law. The law (rule) cannot be sellectively enforced.
2. How does one lawfully collect sales tax on an item one does not sell? So, if anything at all it is a use tax only issue.

What my fear is, is that FFL's will just kneel in subjection to The State and act as Tax Enforcement Agents for The State rather than collectively fight this bogus unlawful act by The State. In fact many are already on bended knee and doing the will of The State before even getting involved in the fight.

Contact NSSF, contact the NRA, and contact your Republican (or reasonable thinking Democrat) Congressman, and let them know about this unjust act by The State.

Originally Posted by Gunfixx

It's going to be challenged in court.
1. FFL's are being singled out and expected to be Tax Enforcement Agents of The State. I'm told that this is not lawful. The law (actually it is just currently a "rule") is not being applied/enforced equally on all retailer/vendors, and that is against the law. The law (rule) cannot be sellectively enforced.
2. How does one lawfully collect sales tax on an item one does not sell? So, if anything at all it is a use tax only issue.

What my fear is, is that FFL's will just kneel in subjection to The State and act as Tax Enforcement Agents for The State rather than collectively fight this bogus unlawful act by The State. In fact many are already on bended knee and doing the will of The State before even getting involved in the fight.

Contact NSSF, contact the NRA, and contact your Republican (or reasonable thinking Democrat) Congressman, and let them know about this unjust act by The State.

I certainly hope it gets challenged. It's unfair for the FFL dealer having to be the tax collector and monitor what people buy. So if you bought a used item, and taxes were paid for it.. it's double dipping.

I'm starting to believe if I have a garage sale, they would be stopping by to pick up the taxes.