Tax scenario guns online

What tax? State sales tax?

I think it's like any other online sale. Sales tax applies if the store has a physical location (a "brick and mortar") in the same state as that to which the order is shipped. It's collected by the seller at the time of payment.

That's been my experience in online purchases from out of state businesses (I'm also in Florida.) If the business is located in Florida, I pay state sales tax. If it's not, there is none collected.

I have read that there may be legislation being drafted to change this, though.

Edit: The link supplied in post 7 by CLP clarifies the matter for Florida residents, and contains information of which I was not aware (I bet few are!)

no state tax is collected from online out of state purchases

.... that's incorrect.

At least in WA State you ALWAYS have to pay the stupid sales tax at the dealer REGARDLESS if the seller/shipper has already charged you that tax. Pretty dumb/wrong but it is what it is. WA State loves that additional revenue

MedWheeler said:

What tax? State sales tax?

I think it's like any other online sale. Sales tax applies if the store has a physical location (a "brick and mortar") in the same state as that to which the order is shipped. It's collected by the seller at the time of payment.

That's been my experience in online purchases from out of state businesses (I'm also in Florida.) If the business is located in Florida, I pay state sales tax. If it's not, there is none collected.

I have read that there may be legislation being drafted to change this, though.

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This will give you an idea of your state's tax laws in cases where tax is not collected by the retailed at the time the online sale occurs.

Eg. Here in Alabama sales (or "use") tax always applies (minus certain annual exceptions), and it's the responsibility of the consumer to pay the taxes of his/her online purchases.

I'm sure most, if not all of us, report/pay taxes on our internet purchases...

http://www.nolo.com/legal-encyclopedia/50-state-guide-internet-sales-tax-laws.html

Most states (if not all of them with a sales tax) operate as CLP posted. You, as the consumer, are responsible for remitting your state sales taxes with your tax return.

re: the OP's location, here's a page from your State revenue dept. on the matter:

http://dor.myflorida.com/dor/taxes/consumer.html

In CT, when you file your taxes, they ask you how much you spent on internet purchases that were not taxed. They then figure it into your tax liability.

zerobarrier said:

no state tax is collected from online out of state purchases

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Wrong. In SC one must remit a use tax to SC similar to what would have been paid just like it was bought in state.
Doesn't matter what you bought, firearm or not.

EDIT- corrected wording per NavyLCDR

In CT, when you file your taxes, they ask you how much you spent on internet purchases that were not taxed. They then figure it into your tax liability.

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The same here in Ohio.

a majority of states are going after the online sellers like amazon for the taxes

Whether guns, books, dvds, appliances, etc, you are suppose to report online purchases that were not taxed on your tax return.

Virtually nobody does this as its currently pretty unenforceable. I wouldn't advise anybody to violate the law, but a no tax collected out of state transaction from buds is no different than from amazon.

dprice3844444 said:

a majority of states are going after the online sellers like amazon for the taxes

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Amazon has distribution centers here in Kentucky, and since they have a presence here. They collect tax for all shipments going to Kentucky.

Amazon has no presence in Ohio, so no tax is collected there. Not sure about Indiana.

rhinoh said:

Wrong. In SC one must remit the sales tax to SC that would have been paid just like it was bought in state.
Doesn't matter what you bought, firearm or not.

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Respectfully, you are incorrect. Every state that has a sales tax has an equivalent USE tax. Every purchase that is made from an out of state source that sales tax is not paid on, the consumer is responsible for paying the USE tax on the item in their home state.

So, techinically, zerobarrier's post was correct - sales tax is not paid on out of state purchases - USE tax is.

Washington state finally figured out that they can require the FFLs to correct the use tax on firearms because of the state licenses they are required to have in addition to their FFLs.

First - There are sales taxes, and there are use taxes.

• Sales tax applies to a tax on taxable item(s) purchased within your state of residence. You are personally liable for the tax, but it's most always collected by the retailer within the taxing jurisdiction. There are categories for tax exempt, and direct pay, but most people pay sales tax based on the taxing laws of a state, city, county, or other taxing authority or jurisdiction. The retailer usually reports and remits sales taxes periodically, based on the net taxable receipts. Taxes may be levied on a total purchase (usually), or individual items (rarely).
• Use tax is usually the equivalent tax rate, but levied on products bought from outside your residence, and used within the taxing jurisdiction. For example, if you lived in the state of Michigan, and buy something taxable from outside the state, and that retailer has no legal obligation to remit the applicable tax to the state of Michigan, then you are liable for any taxable amount. Each state has provisions for buyers of out-of-state goods, for remitting the applicable tax amount to the state taxing or revenue authority.

The same holds true for any taxing jurisdictions within a particular state. You are liable for any use tax levied by a county, city, or other taxing jurisdiction or body.

Using the same example, you are required to voluntarily report the amount of any goods purchased from out-of-state, on your annual Michigan State Income Tax return. Other states, or commonwealths laws may vary.

I would like to add this is all on the honor system and the percentage of people who actually pay use tax on online purchases is probably close to the percentage of sig brace owners that actually use the arm straps.

Midwest said:

Amazon has distribution centers here in Kentucky, and since they have a presence here. They collect tax for all shipments going to Kentucky.

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An odd thing is SC has two Amazon distribution centers that charge no sales tax to SC buyers.
Other in state online retailers are peeved about this...it was a special consideration given to attract Amazon.
A purchaser is still expected to pay a "use" tax to the state though....

Like Washington, California also mandates the transferring FFL to collect sales tax on firearms shipped from out of state as well as in state FTF purchases also mandated to be processed by an FFL.

My question is how do these FFL’s know how much the purchase amount is in order to calculate the sales tax unless a receipt/invoice is included with the item. Just curious since the only things I’ve ever bought online are ink cartridges and books from Amazon with tax collected by the retailer.

vamo said:

I would like to add this is all on the honor system and the percentage of people who actually pay use tax on online purchases is probably close to the percentage of sig brace owners that actually use the arm straps.

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I'd say the number of people actually using it as a cuff is much, much higher.

dprice3844444 said:

a majority of states are going after the online sellers like amazon for the taxes

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A majority of people should go after those who force all these taxes on us

Washington state finally figured out that they can require the FFLs to correct the use tax on firearms because of the state licenses they are required to have in addition to their FFLs.

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Yep, and if I remember right from the one I transferred through an off-post 01 FFL years ago they even charged 9.3% of the shipping

I learned my lesson, that was the last non C&R I bought in WA state.

MagnunJoe said:

Dear friends, if u have purchased a gun online out of state from Buds, Cheaper, Cabellas or anybody else, how is the sales tax collected from the transaction?

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YOU are suppose to pay YOUR state and local entities any sales tax that is due. That is true for any on-line sale where the seller does not have a physical presence in the buyers state.

Like Washington, California also mandates the transferring FFL to collect sales tax on firearms shipped from out of state as well as in state FTF purchases also mandated to be processed by an FFL.

My question is how do these FFL’s know how much the purchase amount is in order to calculate the sales tax unless a receipt/invoice is included with the item. Just curious since the only things I’ve ever bought online are ink cartridges and books from Amazon with tax collected by the retailer.

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Most of the time the gun comes with an invoice. If one isn't in the box then the dealer is supposed to make an educated guess. If it's a new gun then MSRP is a safe value to use. For a used gun he can base the value on recent GunBroker sales of that gun.

It comes down to the state as I'm sure others have already said.


Texas just made to where you pay taxes from online purchases from Amazon, but no where else. Just shows you how much business Amazon does.

Texas Gun Person said:

It comes down to the state as I'm sure others have already said.


Texas just made to where you pay taxes from online purchases from Amazon, but no where else. Just shows you how much business Amazon does.

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Incorrect. Texas required Amazon to collect the sales tax. The user is still responsible to pay use tax on items purchased from retailers who do not collect the sales tax. See the red part below. Only if you can produce a sales receipt that says the state's (in this case Texas) sales tax was collected is the buyer relieved of the responsibility of paying the use tax. This is actually the same in every state that has a sales tax, and it is written into each state's sales tax law.

http://www.statutes.legis.state.tx.us/Docs/TX/htm/TX.151.htm

TAX CODE
TITLE 2. STATE TAXATION
SUBTITLE E. SALES, EXCISE, AND USE TAXES
CHAPTER 151. LIMITED SALES, EXCISE, AND USE TAX

SUBCHAPTER D. IMPOSITION AND COLLECTION OF USE TAX
Sec. 151.101. USE TAX IMPOSED.
(a) A tax is imposed on the storage, use, or other consumption in this state of a taxable item purchased from a retailer for storage, use, or other consumption in this state.(b) The tax is at the same percentage rate as is provided by Section 151.051 of this code on the sales price of the taxable item.

Acts 1981, 67th Leg., p. 1552, ch. 389, Sec. 1, eff. Jan. 1, 1982.

Sec. 151.102. USER LIABLE FOR TAX.
(a) The person storing, using, or consuming a taxable item in this state is liable for the tax imposed by Section 151.101 of this code, and except as provided by Subsection (b) of this section, the liability continues until the tax is paid to the state.

(b) A person storing, using, or consuming a taxable item in this state is not further liable for the tax imposed by Section 151.101 of this code if the person pays the tax to a retailer engaged in business in this state or other person authorized by the comptroller to collect the tax and receives from the retailer or other person a purchaser's receipt given as provided in Section 151.103 of this code.
Acts 1981, 67th Leg., p. 1552, ch. 389, Sec. 1, eff. Jan. 1, 1982.