Sales tax on out-of-state gunsmith work?


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Shmackey
July 5, 2003, 07:06 PM
Stupid question: If I send my gun out of state to a gunsmith, is sales tax charged on anything? If not, that somewhat offsets the $70 in shipping.

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Standing Wolf
July 5, 2003, 09:40 PM
Work done in another state shouldn't be taxable.

Jim K
July 5, 2003, 11:07 PM
Some states do not tax labor, others do. States with sales taxes all tax material used even if installed by the gunsmith. For example, even if labor on installing a scope and mount is not taxed, the scope and mount would be.

Unless the smith can legally avoid those taxes on work done for an out-of-state customer, he will charge the tax, just as if you bought the items in his store.

Jim

Shmackey
July 5, 2003, 11:55 PM
Jim, that makes sense, but in the context of gunsmith work, where "Furnish and install safety: $60" is on the price list, isn't it safe to assume that the gunsmith has factored in the entirety of his own cost for the part?

Nero Steptoe
July 6, 2003, 03:10 PM
Unless your gunsmith's State specifically requires that sales tax be paid on out-of-state sales, then there should be no sales tax....kind of like order from Brownell's, if you don't live in Iowa.

Jim K
July 8, 2003, 12:26 AM
I think just about every state that has a sales tax law can collect sales taxes on stuff bought from out of state and shipped in, it is just that most don't do it because enforcement would be about impossible. But if you look in a lot of mail order catalogs, they have the state sales tax rates listed and say to enclose the proper amount. The money is returned to the state from which the product was ordered.

My wife used to work for a company that made and sold steel building joists and trusses. One of her jobs was finding out the proper sales tax to charge out of state customers and forward the money quarterly to the various states. Of course, that was big bucks, but the size of the order really doesn't matter unless the law sets a minimum.

Even so, I agree that if the smith sets a specific rate, then that should include whatever charges are involved, other than shipping.

Jim

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