Sales tax collected by Gunbroker

[gmerkt]

Since the first of the year, GB has been collecting state sales tax for 8 states. I got an email today, effective April 1, they are adding 36 states to the list for which they are collecting state sales tax. Total, 44 states. So maybe the 6 remaining are states that don't have state sales tax. In Wash. state, that adds about 10% to a purchase. Which has been going on with a number of online merchants for some time. It's just fairly new to GB. Have they caught up with Powder Valley yet?

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[RevBadger]

I noticed that as well. But in WA, if you can prove you paid sales tax already, you don't have to pay it at the FFL.

 

[TTSX]

Remember when the Left coast was mostly free? Pepperidge farm remembers

 

[nobamaplease]

I noticed that as well. But in WA, if you can prove you paid sales tax already, you don't have to pay it at the FFL.

In Washington state, there are no sale tax when purchasing gun(s) from private individual, seller a WA resident or not. Some WA FFL will collect sales tax and pocket the tax!
Don't know if GB will differentiate between private or business or not, but most likely not.

 

[wired]

I had a friend who ran a gun shop in Castle Rock. He went for years without collecting sales tax on transfers . When the state came in one day and audited his books he got a bill for $40K . Put him out of business.

 

[ATCclears]

This should not be a surprise - States have working to close gaps where the Sales Tax was not being charged for appropriate transactions.

As for collecting the Sales Tax and not remitting it to the relevant Agency(ies), I saw that happen with the company who used to do septic work for us. The guy got stupid and WA State caught up with him - I think he may have even done a short stint in jail over it, or perhaps that and some other combination of factors. It's too bad since he was easy to deal with and had a growing business.

 

[Alexx1401]

Most states followed the great lock down. So most states put a LOT of their tax base in bankruptcy. They are being promised bail outs by the Feds now but, in the short term they are hurting and of course are going to go for any sales tax (if they have a sales tax) they can get. Internet sales have long been taxed. More and more Co's are going to follow along since they don't want the state's lawyers to come for them.
Now buying a gun from an individual off Gun Broker? I know when I did this it was always new guns and I did have to pay the state tax at my FFL. So guessing that even if some seller is not charging the sales tax, the FFL who transfers probably will. If they do not and state decides to come after them? How many FFL's could afford or even want to try to fight the state who has unlimited money to fight it in court.

 

[223to45]

It all started with this .

https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf

 

[wired]

"Render unto Caesar the things that are Caesar's, "

That's where I dropped that book.

 

[AMT]

In Washington state, there are no sale tax when purchasing gun(s) from private individual, seller a WA resident or not. Some WA FFL will collect sales tax and pocket the tax!
Don't know if GB will differentiate between private or business or not, but most likely not.

According to GB everyone will get taxed if you are in a receiving state that requires you to pay sales tax. Read 3rd to the last paragraph.....


Dear ______________

Since the Wayfair Supreme Court decision, states have been allowed to force sellers to collect sales tax for items sold into a state even if the seller has no physical presence in that state. Additionally, some states have enacted so called Marketplace Facilitator (MPF) laws in an effort to force marketplaces that perform the remittance of sales tax on behalf of the marketplace's sellers. These laws shift the sales tax collection and remittance obligations from the individual seller to the Marketplace Facilitator.

The GunBroker.com MPF States On April 1, 2021, GunBroker.com will be adding to the list of MPF states. In addition to the original 8 states (in Red and Bold) GunBroker.com will collect and remit sales tax for an additional 36 states based on the address where the item is delivered (Ship To address). Complete list:

Alabama Arizona Arkansas California Colorado Connecticut District of Columbia Georgia Hawaii Illinois Idaho Indiana Iowa Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Nebraska Nevada New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

All sellers, even individuals that are not businesses, are required to collect sales tax to meet the regulations. GunBroker.com will assist you with the calculation, collection and remittance of the sales tax due. GunBroker.com will calculate the sales tax required and add it to the order during the checkout process. The tax calculation will be based on the Ship To address on the order. This is the location of the Buyer not the location of the Seller. The calculation will include sales tax for the item plus any additional taxes imposed by that state on other things such as shipping or handling. Simply collect the order total payable due from the buyer. ​

​

 

[Alexx1401]

In Washington state, there are no sale tax when purchasing gun(s) from private individual, seller a WA resident or not. Some WA FFL will collect sales tax and pocket the tax!
Don't know if GB will differentiate between private or business or not, but most likely not.

Have you actually asked anyone in the state division who are in charge of sales tax about this? If you check into it I suspect they will not agree with you. I have no doubt that if I want to sell a gun to my buddy and we walk into a shop to do the sale, that would not be taxed. Now if I shop on some website, like GB, buy a gun from some one to be shipped to my FFL? You will probably find the person who decides what is a sale that is taxed will tell you this is a taxed sale.
As for the supposed FFL's who are pocketing the sales tax they collect? If any of them really are doing this they are risking their business for a few bucks. If anyone who is charged sales tax contacts the state and they check? This would become a criminal complaint. VERY high risk for very little money. There is always stupidity so someone may try this. If they do someone will get caught and the AG will make shining example out of them.

 

[223to45]

In Washington state, there are no sale tax when purchasing gun(s) from private individual, seller a WA resident or not. Some WA FFL will collect sales tax and pocket the tax!
Don't know if GB will differentiate between private or business or not, but most likely not.

well actually there is , it is called Use Tax. all private sales for anything , or anything you have shipped into state, private or not.

 

[AMT]

Have you actually asked anyone in the state division who are in charge of sales tax about this? If you check into it I suspect they will not agree with you. I have no doubt that if I want to sell a gun to my buddy and we walk into a shop to do the sale, that would not be taxed. Now if I shop on some website, like GB, buy a gun from some one to be shipped to my FFL? You will probably find the person who decides what is a sale that is taxed will tell you this is a taxed sale.
As for the supposed FFL's who are pocketing the sales tax they collect? If any of them really are doing this they are risking their business for a few bucks. If anyone who is charged sales tax contacts the state and they check? This would become a criminal complaint. VERY high risk for very little money. There is always stupidity so someone may try this. If they do someone will get caught and the AG will make shining example out of them.

I was told by my tax person many years ago that if i travel into Oregon and buy anything (let's say a refrigerator) that i am supposed to go to the Dept. of Revenue and pay the Use-Tax on it (i believe it is 6.2? 6.4? percent). I do not have to pay the full 8.4% for the sales tax in Clark County because i did not buy it in Clark County. BUT I am supposed to pay the "Use Tax" for it.

And yes, technically, unless you can prove that you have already paid the sales tax on an item (say the firearm that you sold to your friend) you are supposed to collect the sales tax from your friend and claim it with the Dept. of Revenue at the end of the year for "taxes collected". If you can show proof that sales tax was already paid on it, then you do not have to collect the sales tax.

 

[Alexx1401]

I was told by my tax person many years ago that if i travel into Oregon and buy anything (let's say a refrigerator) that i am supposed to go to the Dept. of Revenue and pay the Use-Tax on it (i believe it is 6.2? 6.4? percent). I do not have to pay the full 8.4% for the sales tax in Clark County because i did not buy it in Clark County. BUT I am supposed to pay the "Use Tax" for it.

And yes, technically, unless you can prove that you have already paid the sales tax on an item (say the firearm that you sold to your friend) you are supposed to collect the sales tax from your friend and claim it with the Dept. of Revenue at the end of the year for "taxes collected". If you can show proof that sales tax was already paid on it, then you do not have to collect the sales tax.

Lovely, can't say I am surprised though. The government does one thing real well, get bigger and more hungry.

 

[Fishjager]

You can always tell when a FFL or others is collecting and pocketing the sales tax. Big flag is no receipt given! It is the front pocket tax bank.
Kind of like, you are so stupid to buy from me, you don't want a receipt? I just figure that one of these days the Department of Revenue will show up and audit their records. I know of a FFL that does this, and am just waiting to see what happens to him. Needless to say, I no longer deal with him!

 

[wired]

I was told by my tax person many years ago that if i travel into Oregon and buy anything (let's say a refrigerator) that i am supposed to go to the Dept. of Revenue and pay the Use-Tax on it (i believe it is 6.2? 6.4? percent). I do not have to pay the full 8.4% for the sales tax in Clark County because i did not buy it in Clark County. BUT I am supposed to pay the "Use Tax" for it.

And yes, technically, unless you can prove that you have already paid the sales tax on an item (say the firearm that you sold to your friend) you are supposed to collect the sales tax from your friend and claim it with the Dept. of Revenue at the end of the year for "taxes collected". If you can show proof that sales tax was already paid on it, then you do not have to collect the sales tax.

my sister in laws parents bought around 20k worthof furniture in Portland. Paid with the credit card. They got a $1400 tax bill from the state of Washington.

 

[Alexx1401]

You can always tell when a FFL or others is collecting and pocketing the sales tax. Big flag is no receipt given! It is the front pocket tax bank.
Kind of like, you are so stupid to buy from me, you don't want a receipt? I just figure that one of these days the Department of Revenue will show up and audit their records. I know of a FFL that does this, and am just waiting to see what happens to him. Needless to say, I no longer deal with him!

No shortage of stupid people seems. When he gets caught, as he most likely will, they will make it cost him hundreds of times what he pocketed by the time they are done with him.

 

[nobamaplease]

I have purchasing many guns from around the USA, both from private and business and had them shipped to my FFL (Les at Clark Co. Gunsmithing) he only charges sale tax for the ones purchased from business. You can call and ask any reputable FFL in WA!
All guns mailed into WA has to be mailed from an FFL. FYI

 

[Fishjager]

They must come into an FFL. The FFL can receive from a private party as long as proper ID is enclosed. There are dealers who will say just the opposite, but they are playing you the buyer as stupid. You can also legally ship to a FFL in another state, just provide legal ID, and ask they before hand if they receive from a private party. I just ship through a FFL to another FFL because it is safer with many carriers.

 

[Barefootdog]

Why do the citizens of any state vote to allow the SOBs in the respective state capitals to collect and waste ever greater amounts of private citizens money?..........and without even forcing the inclusion of a sunset provision allowing the citizens to stop the theft....it's like volunteering to give yourself cancer because it kills you slowly.

Lived in a lot of different states...all had sales taxes. Everyone seemed to hate the tax. But nobody ever answered the question why they allowed it to be imposed in the first place. Hope Oregon continues to hold out....if for no other reason than to frustrate our Salem Overlords canine infatuation with grasping ever more citizens money.