State Tax on a transfer???????? what gives

Opie-IN

New member
I just sold my pistol thru the TFL classifieds, anyways, The dealer on his end charged him 30 bucks for the transfer, which is fine, but then tried to charge him state tax for the pistol. Whats the scoop on that? I have never paid state tax on any gun I have bought across state lines, and from what I understand you dont have to. Is there something I am missing or is this dealer trying to jack the buyer for some extra cash. It has basically killed our deal, so I am wanting to know the laws on transfers and tax before I sell to someone else. I have sold before and no one was charged tax. Thanks a million, Brian
 
Depends on what state it was shipped to. Some states tax products but not services. Some tax everything. If the dealer is in a state that taxes services, and it went through the cash drawer, it will be taxed.
 
PreserveFreedom, Wouldnt he be taxed only on the $30 transfer then in the worst case, the dealer is attempting to tax him on the entire price of my gun. BTW I am also in Evansville, call me if you ever want to do some shooting.
 
There is full value tax on anything shipped to Calif. If you sent it somewhere else the buyer needs to tell the dealer that the gun was a freebie from and estate. Sounds like he dealer is trying to rip him off. $30 transfer plus another $20-$35 in tax that he can put in his pocket and not pass on to the state.
 
Yes, it should just apply to the transfer fee. Sorry I misread earlier. I just started a security job on the midnight shift and I have been kinda drowsy when online. ;-) Don't worry, it's real security, not the mall ninja kind. Anyway, I just moved to Evansville about a week ago from New Mexico. I am wanting to get my CHL before I go out doing much. I am planning on filing the paperwork early next week. After then, sure, I could use a new shooting buddy or two. :-) I have no idea what range(s) are good around here. In New Mexico, we used to just go shoot rabbits in the hills. With the move and packing and all, It's probably been a good month or so since I shot anything and I am just itching.
 
For you Evansville Guys

First off, to clear stuff up, the FFL on my end is not the problem, its the other guy who had trouble, he is somewhere other than IN.

I do all my gun buying business at Woodsmens now. Its a pretty new shop here in Evansville, Its behind Subway on Diamond Ave, right across the street from Kuesters hardware. Its a one man shop, which I prefer. His prices in the case are a bit higher than some of the other stores in town, but he will haggle with you. I have bought my last 6-8 guns from him and have been very happy with all the deals. I just bought a like new Glock 27 today from him for $400 out the door. I had a Ruger MKII with some jamming problems. I bought it from him for $220 new. That was one of my first gun purchases from him. I took it back to him the day after I got it, and he paid to send it to Ruger for me. Got it back and it still wasnt fixed, so he paid to send it back a second time, no other dealer I know of will pay for the shipping of a gun back to the factory for you. He didnt make a penny on that gun, and probably lost money, he didnt bitch about it once. After all that crap, he told me if I wanted to just give it back to him and get in store credit I could. You cant beat that kind of service. I opted to keep it for a while because Ruger fixed the problems finally. When I traded it on a gun a while back, he gave me $180 trade for it. on a $220 gun. Dont go in expecting those deals right off the bat, but if you go to him alot, he will start taking care of you.

PreserveFreedom- About the only place to shoot here is Strictly Shooting on Stockwell Road. They charge like 4.95 for a half hour, and $8 or so for a hour. They will rape you on range ammo, its $9.99 for 9mm winchester white box. Go to Wally World and buy it for 6.99 before you shoot. I am going to join Red Brush rifle range next month if I can afford it. I have spent a lot of money over the last few months on guns, and my wife is pissed! Go to http://www.redbrush.org and check it out, its not far from us at all.
If you have any questions about E'ville email me, I will tell you what I know.
 
How does the dealer know the sale price of the gun? Why not just indicate officially that the sale price is $1.00 and then just arrange unofficially to receive the negotiated price?
 
I'm certainly not a state sales tax consultant.....but..
as a retailer I have a working knowledge of the laws in my state. When a business provides certain service,i.e. painting, landscaping, machine work etc., they collect sales tax. If they sell specified items from their inventory they collect sales tax. In a situation such as you refer to, the pistol was never in the FFL holder's inventory so how would he be in a position to collect the tax unless the law provides for those types of tranactions.
Where I live, the common charge for this type of transfer is $15 or $20 plus $5 for the criminal history check and then only the $5 is subject to sales tax.
BTW in some states, mine included, the burden of paying sales tax rests with the purchaser, the seller acts only as a collector for which he is financially reimbursed by the state. How do I know. I once bought several thousand dollars of services on which I thought the tax was included. Guess what! A couple of years later I had to pay the sales tax, not the seller. Sorry to go off on a tangent. Just food for thought.
 
If the seller(originator) only sells to other dealers and your ffl dealer has to pay this originator (you can't pay the seller directly), then I would think that your ffl would be required to collect the sales tax when you take possession. It would, in effect, be a 'sale' and not a 'transfer'.


But in this private sale scenario, is the dealer going to pay you or is the buyer? Either way, in a private sale, this doesn't sound right.


straightShot
 
He was going to send me hte money and FFL himself, Dont matter now though it killed the deal. Anyways, who wants to buy my Kahr :)
 
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