Do you have to pay State sales tax from an FFL transfer from OUT of state?

[A and O]

Land of the free? Sounds more like the Land Of The Fee

 

[Jorg Nysgerrig]

The US Supreme court settled this many years ago. States are not entititled to collect sales tax from out-of-state purchases unless the seller has a place of business within your state of residence.

Cite?

Both Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Illinois say the the retailer without a physical presence does not have a duty to collect the sales tax on behalf of the state, but I'm not aware that either of them said the state couldn't collect use taxes on out of state purchases from the consumer.

To which case are you referring?

 

[Jolly Rogers]

So what happens if some one relocates to the states that have the "use tax"?
Do they have to pay a use tax on all of their belongings? Who determines what the tax is on used items?
Joe

 

[brickeyee]

Use and sales taxes are on new items.

The federal courts have ruled that states cannot require out of state entities (if they have no physical presence in the state) to collect sales tax for them.

They did not say that states cannot collect sales tax on out of state purchases from state residents, just that they cannot require out of state merchants to collect the tax.

Most states do not demand the tax be paid if you already paid a sales tax out of state (though some have higher tax rates and want the differenace).

To avoid everyone in a state trying to skirt the sales tax rules, use taxes have been added to the mix.

If you purchase something out of state (the state cannot require the merchant to collect for them) the state wants a 'use tax' that SURPRISE is often the same rate as the sales tax you would have paid buying from an in state merchant.

The taxes are legal, if annoying.

If you already paid a sales tax on the item their is usually a way to not pay twice.