I was just informed that apparently the owner of the gun store/range I work at actually received a letter sometime in the recent past (in response to the question) from the Comptroller stating that it is NOT taxable.
Sales tax for doing a FFL transfer is is this correct???
- Thread starter 98f150
- Start date
The #1 community for Gun Owners in Texas
Member Benefits:
Fewer Ads! Discuss all aspects of firearm ownership Discuss anti-gun legislation Buy, sell, and trade in the classified section Chat with Local gun shops, ranges, trainers & other businesses Discover free outdoor shooting areas View up to date on firearm-related events Share photos & video with other members ...and so much more!
Member Benefits:
Meant to ask my guy about this this evening when I was over there pickin' a couple up, but forgot to. Bet that this is one of those things where they decided something, then turned around and changed their minds. What I love is that they expect you to pay tax on the PURCHASE price of the gun. If bought from a DEALER, then maybe - but if bought from an individual, I can't see it.
scottieb0623
New Member
I hate to say it, but all of you guys are wrong! A transfer fee is NOT taxable. If I have a customer order a gun online from galleryofguns.com (which is in Arizona), they pay sales tax on the gun only. Go to this link:
Sales Tax Update - Second Quarter 2009
P.S. I only charge $15 for a transfer, $10 for CHL holders.
Sales Tax Update - Second Quarter 2009
P.S. I only charge $15 for a transfer, $10 for CHL holders.
If your customer orders a gun from an Arizona dealer, they should pay "use tax" to the state of Texas, not "sales tax", since they didn't buy the gun from a Texas merchant.
Whether they do pay the "use tax", or not, is up to them.
Correct. But call it Use Tax or Sales Tax, the rate is the same. This law is not exclusive to firearms. It's for anything and everything that meets the requirements outlined.
As I read this, it seems to also apply to private sales, since the wording says items for use in Texas which have not had Texas taxes collected on them. So an individual in Arizona, who bought the item in Arizona would have paid Arizona taxes to that state.
One of these days they are going to figure out how to enforce this, as I'm pretty sure only a small portion of interstate sales (all things not just guns) gets reported.
So let me see - I go buy a Blastmaster 8000 from Job-Bob's Gun and BBQ, and then years later, decide to sell it to my friend Willie. You're saying that Willie has to pay taxes again on the Blastmaster 8000?
I don't think so.
No, if you bought form a dealer in Texas, YOU would have paid Texas sales tax. That satisfies the requirement. However, as the law states (at least what I read) if you bought from someone out of state.... be it a dealer or individual, then no Texas taxes have been collected on the item, and if it will be USED in Texas, the Use Tax is due. Whether you fill out the formand send it in is another matter. Currently they do not have a method to track this sort of thing.
Just FYI....a while back, the Comptroller's auditors were makin' the rounds of the various gun dealers, instructing them that they WERE taxable. Apparently, enough folks raised Cain that they reversed themselves.
Yes I remember that they starting strong arming people at gun shows. Private sales within the state are not taxable. If however a dealer holds a tax license they are supposed to collect tax. The issue as I recall in some of those was they (the selling dealer) held the position that they were selling their privately held property, not store inventory so it would not be taxable. Still, I don't think most people understand the law as far as purchases (guns, underwear or whatever) from another state. Like I said, Texas as well as most states don't have the means to track this, but you can bet they are working on how to do that because there is a tremendous loss of tax revenue with interstate sales that have skyrocketed with the popularity of internet buying.
Wow, never saw so many wrong answers in a single thread.
transfers are not sales taxable.
Firearms Sold by Out-of-State Dealers - Transfer Fees Charged by Texas Dealers
When a gun is purchased from out of state by an individual in Texas, federal law provides that the out-of-state seller must ship the gun to a Texas dealer for transfer to the individual.
Frequently, the Texas dealer will charge the purchaser a transfer fee to cover the costs of paperwork and handling. Because the gun was not purchased from the Texas dealer, the transfer fee does not represent a sale. Therefore, the transfer fee is not taxable.
For example, assume an individual paid $1,500 to an out-of-state seller for a gun. The out-of-state seller shipped the gun to a Texas gun dealer. The customer picked up the gun at the Texas dealer's place of business and was charged a $25 transfer fee by the dealer. The $25 transfer fee is not considered a sale for Texas sales and use tax purposes and therefore is not subject to sales tax.
The purchase of the gun itself is, however, subject to Texas use tax. If the out-of-state seller does not collect the applicable Texas tax, then the purchaser is responsible for accruing and remitting the tax directly to the Comptroller's office. The Texas gun dealer handling the transfer is not responsible for collecting the use tax since the Texas dealer is not the seller of the gun. Purchasers may use a Texas Occasional Use Tax Return (Form 01-156) to report and remit the Texas use tax on the purchase of a firearm from an out-of-state gun dealer.
transfers are not sales taxable.
Firearms Sold by Out-of-State Dealers - Transfer Fees Charged by Texas Dealers
When a gun is purchased from out of state by an individual in Texas, federal law provides that the out-of-state seller must ship the gun to a Texas dealer for transfer to the individual.
Frequently, the Texas dealer will charge the purchaser a transfer fee to cover the costs of paperwork and handling. Because the gun was not purchased from the Texas dealer, the transfer fee does not represent a sale. Therefore, the transfer fee is not taxable.
For example, assume an individual paid $1,500 to an out-of-state seller for a gun. The out-of-state seller shipped the gun to a Texas gun dealer. The customer picked up the gun at the Texas dealer's place of business and was charged a $25 transfer fee by the dealer. The $25 transfer fee is not considered a sale for Texas sales and use tax purposes and therefore is not subject to sales tax.
The purchase of the gun itself is, however, subject to Texas use tax. If the out-of-state seller does not collect the applicable Texas tax, then the purchaser is responsible for accruing and remitting the tax directly to the Comptroller's office. The Texas gun dealer handling the transfer is not responsible for collecting the use tax since the Texas dealer is not the seller of the gun. Purchasers may use a Texas Occasional Use Tax Return (Form 01-156) to report and remit the Texas use tax on the purchase of a firearm from an out-of-state gun dealer.
Actually, yes and no. Because the Comptroller's office itself was going to the various FFL's telling them that they had to start charging sales tax on transfer fees. So.....call THEM an' tell 'em.
Y'know what, once again - you're wrong. Because I can remember the stink raised w/the Comptroller. I hold a retail sales tax permit....do you? Myself or my family (Dad, Grandfather, Great-Grandfather) have been in business here in Texas since the 1860's - so I'd venture to say I've got a bit of familiarity w/how stupid some of the sales tax laws can be applied.
Yeah whatever dude. Your persistence in arguing a point proven to be false is truly amazing.
It has been documented to be non-taxable for years on the State website, but I am sure what the laws were in the 1860s is more relevant than what they are now....
Did you bother to read the link that Scottie posted? Clearly that positively disputes what you have just said, and seems to be a creditable source
So....you REALLY want to accuse my FFL (who is well-known in custom rifle circles) of lying? Dude, you're SO screwed in the head it ain't funny. As others noted here - this is something that WAS being done.
SO, show me your "proof" that it has NEVER been done - that the COMPTROLLER has NEVER attempted to level taxes on transfer fees.
Once again....tell me - what is YOUR specific FIRST-HAND knowledge w/regards to sales tax laws, rules and regulations? Other, perhaps, than paying 'em when you buy some gum.
Latest posts
-
-
Are S&W M&P 9 full size (Gen 1) & Shield Gen 1 good pistols?
- Latest: TEXAS "All or nothing"
-
-
