Does your WA FFL charge sales tax on a transfer??

[deen_ad]

I'm sure that happens as well.

It's pretty common for WA dealers to collect sales tax in addition to the transfer.

I don't think it's right.............

Brightwater Ventures charges $50 +tax. He only does transfers for a select few customers also.

I ran into that with him several years ago. Seems he was audited by the Revenue Dept and had to pay all the uncollected USE tax on the weapons he transferred in to the state as is required by law. He was responsible for collecting it and failed to do so. He in turn contacted his customers and asked them to reimburse him which some did. It cost him money out of his own pocket for those that didn't repay him.

 

[1941WillysMB]

Well it's pretty clearly stated on the Wa. State Revenue page that it is the responsibility of the dealer doing the transfer to collect sales tax on the purchase price of the firearm including shipping and insurance costs.

If the dealer doesn't and does get audited,,, uhh ohh!

 

[deen_ad]

Here's the link to the Wa. State Dept. of Revenue, in regards to interstate transfer of firearms. Should be enlightening to a few of you!

Regards-
Todd

<broken link removed>

it in a nutshell. Those dealers NOT collecting the tax at the time are subject to collection action by the Revenue Dept. Whether you agree or not is a moot point. The dealers not collection the taxes are in violation of state law.

 

[Blitzkrieg]

it in a nutshell. Those dealers NOT collecting the tax at the time are subject to collection action by the Revenue Dept. Whether you agree or not is a moot point. The dealers not collection the taxes are in violation of state law.

How can they collect sales tax on an item they did not sell to us?

 

[deen_ad]

How can they collect sales tax on an item they did not sell to us?

Because its the LAW

<broken link removed>

 

[Blitzkrieg]

collecting "sales" tax, they are, as per law, collecting USE tax. Any taxable item purchased out of state and brought into the state is supposed to have the use tax paid on it. If they don't collect it they are still on the hook for paying it.

So is every person who orders shampoos, car parts, magazines and such from out of state. No one pays that tax. I would be willing to bet you do not. I certainly don't. If this is state law and if it is being enforced only on FFLs, it is unequal enforcement and unconstitutional, IMO

 

[Buddymack]

Mine charges a straight fee he is fair and cheap and really I don't care what he does with the money after that, taxes are a funny thing I am sure you can find a lot of people that collect a tax that don't report it, and as far as Washington state is concerned when they start standing up for my right that I shouldn't have to pay an ungodly sum of my income to Oregon because I and any other person traveling the roads of America do use their roads????
when are we going to wake up oh my!!!

 

[alfack]

I got burned on this when I bought my new truck in Idaho. They had $10,000 off retail price, half an "incentive" and half a "rebate." When I went to register the truck with WDOT, they charged me taxes on what I actually paid for the truck + $5000 for the rebate. Total BS!

 

[nwg19]

The thing is, my two FFL dealers don't KNOW how much I paid for the gun. How could they? I could tell them I paid ten bucks for it.
My guys both charge sales tax on the transfer fee they charge me. Both of them charge $25.00 plus tax.
One of them has had BATF guys auditing them not long ago and sure seem to be aware of the laws, but obviously don't know anything about this particular law.

 

[Cougfan2]

Correct me if I'm wrong, but I thought I heard something just very recently about this exact issue. I heard or read somewhere that WA just passed a law the required FFL's to collect WA sales Tax on any arms they do transfers for from out of state.

Aha, found the link on this very site. It is a new law going into effect in July 2010.

http://www.northwestfirearms.com/forum/showthread.php?t=28935

 

[deen_ad]

Years ago when I lived in the Seattle area, I ran into this sales tax issue once when dealing with WSI. It used to be a range/store located in Bellevue not far from Wade's. I believe it's been out of business since 2003. Except for this one issue, my experience with them had been good.

Anyway, I was interested in doing a transfer through them and they wanted to collect sales tax in addition to the transfer fee. We got into a heated discussion about it. I asked them how they could collect sales tax on an item they didn't sell. I then quizzed them asking what tax they could charge since they didn't even know the purchase price. Their sales person started backpeddling. And then he said they only collected sales tax on new, current production guns. -You know, the stuff they're actually trying to sell themselves... With that, I knew they were lying. I asked, "So if I contact the state about you turning in the money collected from sales tax on transfers, the state's numbers are going to match yours, right?"

That's when the excuses started to flow- Well, it's hard to compete with internet prices; people should support their local stores; we don't really like doing transfers; etc.

I contacted a gunsmith shop and they transferred it for the normal fee. I was glad I had done my legwork first on it. Some shops are just shameless.

It's not because you were right! It was because both shops didn't know what they were doing! The first shop was right in collecting the tax due, the second shop didn't know what the law is and is on the hook for it if ever audited.

 

[deen_ad]

I got burned on this when I bought my new truck in Idaho. They had $10,000 off retail price, half an "incentive" and half a "rebate." When I went to register the truck with WDOT, they charged me taxes on what I actually paid for the truck + $5000 for the rebate. Total BS!

"burned". You ended up paying the tax you owed to the state.

Also, you don't register the vehicle with the WDOT, you register it with your counties Motor Vehicle Licensing Dept.

Also, did you report the rebate to the IRS as income? That's also a requirement.

 

[alfack]

Whatever. The tax that was collected went to the state.

I only paid $23,000 for the truck, but they charged me taxes on $28,000. If you think that's fair, more power to you. I think it is a RIP OFF!

 

[deen_ad]

The thing is, my two FFL dealers don't KNOW how much I paid for the gun. How could they? I could tell them I paid ten bucks for it.
My guys both charge sales tax on the transfer fee they charge me. Both of them charge $25.00 plus tax.
One of them has had BATF guys auditing them not long ago and sure seem to be aware of the laws, but obviously don't know anything about this particular law.

the DOR website about this <broken link removed>
If the dealer doesn't know the price they have to establish the value according to RCW 82.08.120
BTW: they shouldn't be charging tax on the transfer fee, that's also on the DOR page.

 

[deen_ad]

Whatever. The tax that was collected went to the state.

I only paid $23,000 for the truck, but they charged me taxes on $28,000. If you think that's fair, more power to you. I think it is a RIP OFF!

You DID pay $28,000 for the truck, the rebate is taxable as you found out.

Don't forget to file an amended 1040 for the rebate income too.

 

[alfack]

You DID pay $28,000 for the truck, the rebate is taxable as you found out.

Don't forget to file an amended 1040 for the rebate income too.

Or what, you gonna turn me in? The rebate was instant and I did not pay $28,000 for the truck, I paid $23,000 + the taxes on $28,000.

You sound like the media. "The good news is we created 1600 jobs. The bad news is we lost 6000." I.e. they lost 4400 jobs.

 

[Kimber Custom]

We are a bit off topic here but I did have something similar. I bought a truck in OR for 4k but the state said it was worth some figure higher than that and I got charged tax on the higher amount even though I had paperwork showing what I had actually paid for the truck.

To be back on topic: I'm curious if any of the flat fee agents like coctailer have changed their policy since some of the links have been posted that seem to indicate it can fall on them to pay the tax if audited?

I don't mind giving to Caesar what is Caesar's. I just wish Caesar didn't make it so hard sometimes.

 

[YFZsandrider]

I recently purchased a handgun out of state, and when I was trying to find an FFL for the transfer, there seemed to be a bit of confusion on the subject. Some of the FFLs didn't know anything about a sales tax on the purchase amount of the gun, while others were under the impression that they had to charge a tax. Mary at Mary's Pistols (in Tacoma) even told me that for the time being, she wasn't accepting any transfers, because she received a notice from a gov't office, and wasn't quite sure exactly what she was required to do at the time.

I ended up having my transfer done by Welcher's... awesome people!

 

[Redcap]

Sales tax I can understand on a new item purchased from a store. No way in **** will I pay "use" tax for anything in a private transfer.

 

[Blitzkrieg]

Sales tax I can understand on a new item purchased from a store. No way in **** will I pay "use" tax for anything in a private transfer.

I'm not paying it, either WAY