Sales tax for doing a FFL transfer is is this correct???

[98f150]

The gunshop I use to do transfers for weapons I buy on the internet charges me $45.00 plus sales tax. To me this does not sound right because I didn't really buy something.. Does anyone know about the sales tax laws?

Thanks,

 

[TexasRedneck]

Yep - the Comptroller has been making the rounds of the gun shops and insisting that the transfer fee is taxable. It's cheaper to comply than fight...

 

[dalto]

Sales tax on the $45 or the whole purchase?

Either way, $45 is on the high side for a transfer in this area.

 

[TexasRedneck]

It's a transfer, so the sale takes place at a different location. The physical act of the transfer, however, they've decided is a taxable event.(read that: Holy SHIT - look at that untapped tax base!!!!)

 

[zembonez]

Lots of services are now included in the "taxable" column. One has to wonder where all of the money goes when we hear nothing but budget deficits and lack of money from the State.

 

[WadeP]

Yes, it is a taxable service. In fact, I just wrote the Comptroller a big check. Come to San Marcos; I charge $25 including tax.

 

[Texan2]

I charge $25 including tax.

Thats what I was thinking ....$45? Ouch.

 

[0223T]

Texas is Sales and Use Tax State which means if you live in Texas, buy out of state and USE it Texas you owe tax on it. And they do inforce it at times.

 

[Poink88]

I am using someone (Adrian) in Round Rock. He charges $10.00 per transfer (yep $10.00)

 

[txinvestigator]

Transfers are a taxable service.

Surprisingly, training is not.

 

[nalioth]

Most FFLs roll all the taxes and extraneous charges into a single fee.

Saves a lot of confusion.

 

[RiverCity.45]

$50 is the norm in San Antonio. It's highway robbery, IMO.

 

[TexasRedneck]

I'd say you need ta do some shoppin' around!

 

[Mikey]

$50 is the norm in San Antonio. It's highway robbery, IMO.

I usually use this to find FFLs locally. They list transfer fees, but I still call to confirm.

Discount Guns for Sale - Buds Gun Shop-- FFL Search

 

[Texan2]

$50!!!! I have never paid more than $10.

 

[TheDan]

Sales tax on the $45 or the whole purchase?

Sales tax only on the $45... If they are charging you sales tax on the cost of the item you bought elsewhere they are ripping you off. Can you let us know which shop this is? $45 is high anyways. Shop around.

 

[tx787]

You're lucky it's just a tax on the transfer, some state require FFLs to collect sales tax on the sale price of the firearm itself.

 

[Randman]

I am using someone (Adrian) in Round Rock. He charges $10.00 per transfer (yep $10.00)

shhhh...it's our secret...

+1

 

[nalioth]

You're lucky it's just a tax on the transfer, some state require FFLs to collect sales tax on the sale price of the firearm itself.

Which is a lawsuit waiting to happen.

What happens in those states when you do a direct trade with someone? Your received guns value = $0.

What sometimes happens is the dealer looks in the shotgun news (or similar) and charges you tax on what a similar gun costs. This is - if not illegal - unethical in many ways.

 

[double_r76]

Any update on this? I just did another tax-free transfer this week. I asked my dealer what gives and he told me that a firearms transfer was not taxable and then pulled up the following website:

Sales Tax Update - Second Quarter 2009

He said this was the last guidance he had seen on tranfers and that nobody had notified him otherwise.

Thanks,
-Randy