Washington State, Use Tax, and FFL.

[filmingNroading]

I heard something about voiding the tax if you could receive an invoice stating that there was no cash value per say/ invoice stating $0.

"Firearms as gifts
A firearm received as a gift is subject to use tax unless it can be shown that the prior owner paid retail sales or use tax. (RCW 82.12.010). The Washington dealer may use the current fair market value as the taxable amount to calculate the use tax. "

I was curious about a sweepstakes/giveaway. I contacted the people holding the contest in which in their terms and conditions in their contest stated:
"The rifle was manufactured by and will be transferred by __________ and will be treated in a fashion of purchasing a gun from that manufacturer without any transfer of funds. No cash value can be substituted for any awarded prize..."

I asked the holders how they would handle the transfer process and this was their response.
"We can send a receipt from our FFL for $0 as a promotional item which would void any tax on the item and you would have to pay the transfer fee.
Promotional items under $2000 in value are not taxable in any state unless total accrued value over the course of a year totals or exceeds $7500 as far as my understanding goes."

My question is. Are they correct? Would a sales receipt stating $0 and stating it as a promotional item void the tax?

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[deen_ad]

NO, the FFL has to get a valuation from the DOR and use that to charge the sales/use tax, the same as a car dealer does with a vehicle. The DOR is wise to a false bill of sale, and has gone doing it's own valuations through a service they use.

 

[AMT]

Trade for sevice(s)? I reroof your house for that pretty Hi-Point. We both agree to it and sign paperwork stating so. Cash value $0.

 

[Redcap]

Trade for sevice(s)? I reroof your house for that pretty Hi-Point. We both agree to it and sign paperwork stating so. Cash value $0.

You'd reroof a house for a $20 gun?

 

[davemata]

NO, the FFL has to get a valuation from the DOR and use that to charge the sales/use tax, the same as a car dealer does with a vehicle. The DOR is wise to a false bill of sale, and has gone doing it's own valuations through a service they use.

No, my FFL used the price I gave them when I bought something wholesale, they didn't get a street price from the DOR.

 

[hermannr]

Gifts from related persons (let's say your dad or iuncle) are not taxable. Gifts from unrelated persons are taxable.

Easiest way to understand the "use tax" is to consider what would happen if you were regestering an out of state automobile rather than a firearm. (the tax rules are identical) If your friend in OR gives you his old pickup that books at $1000...and you go to DOL to license it...you will pay "use tax" on that book value (OR does not charge sales tax)

If that same vehicle came from NY, and your friend paid NY sales tax, and gave you the receipt for NY sales tax paid...you would not be charged "use tax" on that gift.

If we use the same states, but say the giver was your dad (or other closely related person)...there would be no "use tax" on registration of a vehicel from either state.

If you were to "purchase" a vehicle, and you traded in another car, the tax is based on the difference, not the total value of the newly purchased vehicle. even if the trade in was not licensed in WA.

The "use tax" for firearms follows the same rules with the exception that you can transfer ownership of firearms within the state face to face.

 

[Redcap]

Gifts from related persons (let's say your dad or iuncle) are not taxable. Gifts from unrelated persons are taxable.

Easiest way to understand the "use tax" is to consider what would happen if you were regestering an out of state automobile rather than a firearm. (the tax rules are identical) If your friend in OR gives you his old pickup that books at $1000...and you go to DOL to license it...you will pay "use tax" on that book value (OR does not charge sales tax)

If that same vehicle came from NY, and your friend paid NY sales tax, and gave you the receipt for NY sales tax paid...you would not be charged "use tax" on that gift.

If we use the same states, but say the giver was your dad (or other closely related person)...there would be no "use tax" on registration of a vehicel from either state.

If you were to "purchase" a vehicle, and you traded in another car, the tax is based on the difference, not the total value of the newly purchased vehicle. even if the trade in was not licensed in WA.

The "use tax" for firearms follows the same rules with the exception that you can transfer ownership of firearms within the state face to face.

Yeah...I'm just going to keep not paying that bullbubblegum.

 

[Nwcid]

Here you go, Use tax

 

[deen_ad]

Trade for sevice(s)? I reroof your house for that pretty Hi-Point. We both agree to it and sign paperwork stating so. Cash value $0.

You would owe the use tax on the value of the Hi-Point and they would owe the use tax on the roofing job because each of you received something of value.

Bartaring transactions are taxable

Imagine coming to work at your accounting business on a Monday morning and finding that the plumbing in the employee washroom has been leaking over the weekend. While insurance will cover the water damage, it will not pay for the new plumbing work. Fortunately, one of your clients is a plumber. So, you call Jake the Plumber and tell him your problem. The two of you agree that the work will cost an amount equivalent to six months’ accounting work. Jake does the work, you do his accounting work, and no money changes hands.

Is there any tax liability associated with this barter transaction? Yes!

Both you and Jake have a tax liability to report on your tax returns. Jake will report a retail sale of plumbing services under both the retail sales tax and retailing (business and occupation) B&O tax lines. The amount he will report is the value of six months of accounting services. You will report the value of the plumbing services under the service and other activities B&O tax classification for the accounting services you will provide Jake. The transaction is subject to tax because the value proceeding or accruing to a business includes money, credits, or rights expressed in terms of money (RCW 82.04.090).

 

[deen_ad]

No, my FFL used the price I gave them when I bought something wholesale, they didn't get a street price from the DOR.

Then you must have had a believable price, if it's too low and looks suspicious then they contact the DOR for a value.

 

[shibbershabber]

Wait wait wait...

If I use a WA FFL to do a transfer sale on a gun the I bought from a guy in Indiana... the local FFL has to collect a sales tax based on the value of the gun I bought from out of state??????????????????????


Man, I never thought I would miss Oregon so much

 

[davemata]

Then you must have had a believable price, if it's too low and looks suspicious then they contact the DOR for a value.

$72 lower AFTER sandy hook? It was legit, but I was fully prepared to have to argue it.

 

[davemata]

Wait wait wait...

If I use a WA FFL to do a transfer sale on a gun the I bought from a guy in Indiana... the local FFL has to collect a sales tax based on the value of the gun I bought from out of state??????????????????????


Man, I never thought I would miss Oregon so much

Ain't it grand?

 

[waltermitty]

I was shopping for an SOT/FFL recently to broker the transfer of a Title 2 firearm into WA state. After calling around for several days, I came across one person who said they were unaware of the Dept of Revenue ruling and was still not collecting WA sales tax.

 

[Redcap]

I was shopping for an SOT/FFL recently to broker the transfer of a Title 2 firearm into WA state. After calling around for several days, I came across one person who said they were unaware of the Dept of Revenue ruling and was still not collecting WA sales tax.

There are still a few out there that don't know about it or, better yet, that thumb their noses at Capitol Hill.