Do I pay sales tax in both states?

[CoalTrain49]

I'm in WA which is a Destination Based tax state. That means I pay the tax on a firearm when I transfer it here. My FFL has to collect it by law. I want to buy a firearm from an FFL in MO. MO is an 0rigin Based tax state. That means the seller has to collect the tax for MO.

As I read it I'm going to have to pay the sales tax twice if I want to buy the firearm. Is that correct?

The firearm is on GB. Is there anyway around paying the sales tax twice?

 

[Mk-211]

Possibly, do your research.

https://www.thetaxadviser.com/issue...e it is not uncommon,be given, but not always.

 

[reddog81]

Missouri is an origin based state for IN STATE sales. This is specific to in-state sales and means a seller in Missouri only has to calculate tax based on their location for sales in Missouri. The seller doesn’t have to and should not collect tax on items sent out of Missouri. Any one who tells you otherwise doesn’t know what they are talking about.

Any accountant or lawyer who gives advice contrary to this is an idiot and should not be listened to and should probably be investigated for giving out bad advice.

 

[230RN]

^ Tragifunny.

I'm reminded of the old wisecrack about "If they thought taxation without representation was bad,they should see it with representation."

 

[Appalachiannative]

I'm in NC I recently bought an antique gun from PA it was shipped directly to me which was nice but I had to pay tax to both states which was not...

 

[Highland Lofts]

I too live in Washington State, they collect every penny they can where ever they can.
When you buy items from out of state they don't collect conventional sales tax. These tyrants call it "USE TAX".
It's funny it is the same rate as "SALES TAX".

 

[BushMaster-15]

Don't know of a single State which requires tax to be collected ,for out of State sale . Purchasers pay their State sales tax ,NOT sales tax from State of purchase .

Used to be one was able to purchase firearms via the internet ,have an FFL Transfer do the paper work and NOT pay either States tax . Unfortunately those days are now gone .

Early on purchased several Rifles out of TX. had shipped to an FFL transfer dealer only in California and they DIDN'T collect tax ,as they weren't selling the firearms ONLY transferring them legally State didn't require collecting it .
Then Internet State sales agreements RUINED the Internet

 

[Hikingman]

Is it a licensed local FFL in the state of Washington?

As I understand it:
If the licensed out-of-state dealer collected sales tax, then the licensed Washington dealer should keep documentation of the collected tax, such as a copy of the invoice, receipt, or other document that states the sales tax separately. If the licensed Washington dealer has documentation showing that the licensed out-of-state dealer collected the correct amount of sales tax, then the licensed Washington dealer does not have to collect use tax from the customer.

 

[hso]

Is that correct?

Have you asked the FFLs how they handle this situation?

 

[commygun]

My experience matched what hikingman describes. The FFL collected only his transfer fee.

 

[CoalTrain49]

Missouri is an origin based state for IN STATE sales. This is specific to in-state sales and means a seller in Missouri only has to calculate tax based on their location for sales in Missouri. The seller doesn’t have to and should not collect tax on items sent out of Missouri. Any one who tells you otherwise doesn’t know what they are talking about.

Any accountant or lawyer who gives advice contrary to this is an idiot and should not be listened to and should probably be investigated for giving out bad advice.

Correct. I talked to the seller. He collects no tax because the sale was out-of-state. GB may collect the tax or my FFL might collect it but it's based on WA sales tax. I missed the rifle in question because I couldn't find an FFL to transfer in time. Both of my regular dealers are out of action.

I got a different story from a cabalas dealer though. He said he had to collect his state tax even though he was shipping the firearm out of state. Not sure if that's just a store policy or what, but it doesn't work for me to pay tax on both ends.

 

[CoalTrain49]

Have you asked the FFLs how they handle this situation?

Yes. I called the FFL who was selling the firearm. If the firearm is shipped here without the WA tax being paid my FFL has to collect the tax.

This tax thing is a nightmare to understand. I'm not interested in anymore out of state purchases. I'm probably finished buying firearms unless I can do a clean transfer from in state seller.

 

[edwardware]

I got a different story from a cabalas dealer though. . . Not sure if that's just a store policy or what. . .

No, it's not a state policy. It's a store policy, and it reads, "keep it simple, stupid!"

They don't want the accounting work, and consequent audit requirements and tax fraud risk, or creating a non-taxed sales option.

 

[Robert]

Asked, answered, off topic posts deleted, and wandering further in to non THR territory. Let's call it a day...