Asked to pay sales tax in CA for out of state purchase :(

Yeah, just what Kali needs....more of my family's money to piss away on useless crap. Brilliant.....

I picked up a new 870 on Wednesday, and as usual was charged a grand total of $2.45 sales tax for the $35.00 transfer fee, then $5.00 for the background check. So at $322.00 for the 870 from Bud's, $42.45 at the shop and the $30 Remington fall rebate that puts me at $334.45 for a brand new 870.

I'm glad I live in Florida.

States are losing millions of dollars in sales tax revenue annually, do to Internet sellers not collecting or reporting sales tax. With the current budget shortfalls, the states are scrambling to collect every cent they can get.
Here in North Carolina we are required to do self-reporting and pay sales taxes when we file out state income tax. I’m assuming that most residents either under report or don’t report any additional sales taxes, so many states are trying to require Internet sellers to collect sales taxes, or report sales so the states can attempt to collect taxes from the buyer.
Taxing firearm purchases may well be the first to be taxed, as they are the easiest to track.
I don’t like this but I’m afraid all of us may have to get used to this.

I rec'd a similar form letter from the State of Massachsetts several yrs ago wanting me to pay some kind of retail establishment/income tax.

I'd ordered a couple strain screws from S&W and evidently they have to report all sales to the state. Massachusetts decided two strain screws made me a retail establishment and I owed them money. S&W told me to ignore the letter which I did but there's prob a warrant out for me now in Mass.

The whole use tax thing is a joke in this state----for the last several years they have been advertising you have to pay it and expanded the section on the tax form.

I think a whole 300 people claimed use tax last year---literally.

I say the state needs to get out of the welfare and coddling of illegals business------and quit worrying about my online purchases. Thoughts containing my bow string finger come to mind.

As internet sales increase as a percentage of overall commerce government is going to try harder and harder to tax it and get their revenue. They see it as a gold mine.
When it was something small they overlooked it, but now the internet is mainstream and buying things online is common.
Goods that have to be well documented to trade are ripe as the first targets of enforcement, with the added government incentive if they are big dollar items.

Things that fit that criteria of being well documented and easy to punish if taxes were not properly collected are going to be guns, vehicles, etc
Since interstate transfers generally must go through some FFL, these are documented transactions, and have a middleman that can be threatened to help enforce the collection.


California now appears to put the burden on the FFL by twisting logic to say he is the actual retailer responsible for the tax because he fills out the form even though he wasn't paid the price being taxed. That is quite the twisted logic, and defies how commerce works.
The intended outcome being an FFL scared of losing their license by not collecting taxes on every firearm they must legally document, including those not purchased from them. Turning the FFL into an internet sales tax policeman.
If they can't get taxes by having the masses voluntarily submit them, and the business that did the actual sales is out of their jurisdiction, then they can focus on less numerous and easier targets and force them to do their job for them.

I didn't know about TN forcing dealers to collect sales tax on transferred firearms. Thanks for the info.

WA state also forces FFL's to collect and remit use tax on transferred firearms. Gifts and inherited guns are exempt.
http://dor.wa.gov/Content/GetAFormOrPublication/PublicationBySubject/TaxTopics/FirearmTransfers.aspx

Oh, and if you don't do it the ATF will revoke your license, as one of the stipulations for keeping it is that you follow all applicable state and local laws.

I expect to see more cash-strapped states follow suit in the future, as the legislators don't have to vote to increase taxes, they just have to pass a law stating the tax (which everyone should be paying already) must be collected by the FFL when the gun is transferred to the buyer. Argue in opposition and you will be accused of "supporting tax cheats and tax fraud".

One exception in California is if the firearm was shipped to the California dealer by an unlicensed individual. In that case, the California BOE considers the transfer an occasional sale between individuals and not subject to sales or use tax. A shipment from an out of state dealer to the California dealer for transfer is taxable.

They, being the collective term for state governments, are trying to get it thru,

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With a BIG push and a LOT of help from retailers like Walmart and especially Target

When it gets to be more expensive to shop online, these stores stand to make a lot more in sales

o Unforgiven o said:

I picked up a new 870 on Wednesday, and as usual was charged a grand total of $2.45 sales tax for the $35.00 transfer fee, then $5.00 for the background check. So at $322.00 for the 870 from Bud's, $42.45 at the shop and the $30 Remington fall rebate that puts me at $334.45 for a brand new 870.

I'm glad I live in Florida.

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Just curious, did you pay the state of Florida their use tax, or did you just ignore that state law?

o Unforgiven o said:

I picked up a new 870 on Wednesday, and as usual was charged a grand total of $2.45 sales tax for the $35.00 transfer fee, then $5.00 for the background check. So at $322.00 for the 870 from Bud's, $42.45 at the shop and the $30 Remington fall rebate that puts me at $334.45 for a brand new 870.

I'm glad I live in Florida.

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Wait, you had to pay sales tax on a transfer fee? That's some garbage right there. My FFL transfer fees have always been the fee only, since technically nothing is being sold for the gub'mint to tax.

Just curious, did you pay the state of Florida their use tax, or did you just ignore that state law?

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There are probably few laws more widely ignored than Use Tax laws.

Wait, you had to pay sales tax on a transfer fee?

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WV also charges sales tax on service and labor charges.

The State of Illinois now explicitly asks on their tax forms that you to declare and pay tax on all out-of-state purchases made with the intent of in-state use.

Did I read this right, that you bought a gun that was available at a local shop, and went through all that effort, plus denied profit to a local business to save $26 on a nearly $700 purchase?

I mean I buy things like magazines online when they are like $10 cheaper apiece, but saving $26 on a large purchase seems miserly. Correct me if I'm wrong?

I've lived in Florida for almost 30 years since transferring here with the Navy and never heard of a use tax, I really thought you were full of it or pulling his leg, but when I looked it up there it was, a USE TAX, now you've gone and done it, I need to retire again and get out of here quick, I'm a tax cheat and didn't even know it. Thanks a whole lot LCDR.

Keith

Me too

Yep, I am a CA resident and I too have been advised and had to pay sales tax for an internet sale from an out-of state-purchase (of a CA legal firearm I should add). My (non-stocking) FFL informed me of the letter about two months ago. He was even more steamed than I was because he has been doing these legal transfers for many years but acknowledged that CA must be scraping the bottom of the barrel for revenue.
Worse yet, the first gun that he had to charge me for had been sitting with him for more than a year waiting for me to pick it up. That is, I ordered it over the web more than a year ago, but business travels (and some laziness) delayed my pickup for a very long time. So even though I purchased it (from the non-CA selling individual and FFL) a year ago, I had to pay tax on it because the letter arrived with my FFL before I picked it up.
I understand the desire to recoup taxes that are lost due to internet sales, and I'm not completely against it because it is so radically changing the retail landscape more quickly than LGS's (and many others) can adjust. But I sure would have liked to know beforehand of the 'uplift' in the total cost to me. Buying P7M8's the 8.25% turns in to some big numbers.
B

I have an unpleasant surprise for certain members of this group who keep in shape by jumping to conclusions: California's use tax was enacted when a Republican, Frank Merriam, was governor. The year was 1935 and Governor "Moonbeam" hadn't even been born yet.

You folks from Kali know that the state is hurting for cash, how else are the illegals that Kali welcomes into the state going to live?

If you choose to live in a state that is run by liberals, you can only blame yourselves. I moved from new york state to North Carolina, and though NC has it's problems with taxes, they pale by comparison to the insanity of NY, and the voters of NC are doing something about the problem of taxes. It's too late for Kali or NY.


NCsmitty

KeithK said:

I've lived in Florida for almost 30 years since transferring here with the Navy and never heard of a use tax, I really thought you were full of it or pulling his leg, but when I looked it up there it was, a USE TAX, now you've gone and done it, I need to retire again and get out of here quick, I'm a tax cheat and didn't even know it. Thanks a whole lot LCDR.

Keith

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You can retire in Oregon, they don't have a sales tax, therefore no use tax. Unfortunately EVERY state that has a sales tax also has a use tax.

Washington state is doing the same thing. Even when buying from an out-of-state private party, which is beyond ridiculous. Basically any time they have a paper trail, such as doing a transfer with an FFL or registering a car, you have to pay sales tax. Even for a used item purchased from a private party. Insane.

Bubbles, so far in Tenn. individual shops are making the decision wether or not to collect the tax. The state law mandates that it will be collected. Some guys are skating until the shtf. Most of the guys i buy from are collecting now.

NavyLCDR said:

Just curious, did you pay the state of Florida their use tax, or did you just ignore that state law?

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No. I try to go back through the year for big online purchases at tax time.

USAF Vet said:

Wait, you had to pay sales tax on a transfer fee? That's some garbage right there. My FFL transfer fees have always been the fee only, since technically nothing is being sold for the gub'mint to tax.

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He says that because he is a business, and is charging me money that he is required to collect sales tax on it. It's $2.45 so I don't mind, and when I picked up my 870 he threw in a box of Federal top gun. All in all I think I did just fine. I also came out way ahead compared to Walmart wanting $382+Tax+$5 and only offering the 870 with a 28" bbl and not the 26" I wanted.

o Unforgiven o said:

No. I try to go back through the year for big online purchases at tax time.

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I can neither confirm nor deny that you do more than me...