Washington FFLS and sales tax?

enjr4 · Apr 30, 2010

Can anyone sort this out for me?

One FFl says he doesn't think he is supposed to collect the tax, so he is not doing any transfers until he and his lawer get it sorted out.

Another says that is he required and does collect the sales tax now. That it is a new requirement as of last month.

And a third says that FFLs have always been required to collect the tax, but didn't because the state didn't enforce it.

And one other says that he got a letter from the state says they want his transfer records and five years of back taxes based on the blue book value of the transfers.

Does anyone know the REAL story?

Thanks, Ed

zeppelin · May 1, 2010

If you have an FFL in Washington state and you 1) buy guns for others or 2) buy guns for yourself you must pay the sales tax or the use tax. If you sell to others you must collect the appropriate local sales tax and if you use it yourself, you must pay the use tax (same as sales tax rate). I know this from experience. I had an FFL a few years back and eventually WA state wrote me and said I must comply and pay the tax for any and all guns I had bought and sold or transferred to myself. Best to pay up front rather than do catchup later.

Oro · May 1, 2010

And a third says that FFLs have always been required to collect the tax, but didn't because the state didn't enforce it.

This is the case. No new law, just a sudden enforcement of an old, obscure, and bizarre law. My FFL informed me today it's driven him out of the transfer business, and thus much of his income and livelihood.

I heard that one of the WAC officers, and part-time dealer, was slapped with a fairly massive tax bill by the state for his past transfers - $35k was the number I heard 2nd hand. Ouch.

It's going to kill the already thin transfer market in the state.

torpedoman · May 1, 2010

It's going to kill the already thin transfer market in the state.[/QUOTE]

Another job well done by the liberals on the coast.

Redcap · May 2, 2010

torpedoman said:
It's going to kill the already thin transfer market in the state.

Another job well done by the liberals on the coast.[/QUOTE]

Makes me wonder what they'll think of next...

zeppelin · May 2, 2010

By the way, the state also had me file for a WA state small business license (which is the mechanism through which you pay the taxes). This plus the onerous licensing and inspection requirements by the BATFE that were implemented by the Clinton administration is why I don't have an FFL anymore.