The federal government imposes a 10% tax on pistols/revolvers and 11% tax on other guns and ammo. Now, you can argue whether this tax is good or bad (I'm not going to do so here) but here's what bothers me: with state sales tax, the states are charging tax on the tax. Double dipping.
For example: suppose I buy a rifle that's worth $500. Counting the excise tax, that's $555. But here's the thing. When I look at my Sportsman's Warehouse receipt, I don't see a line for the excise tax. The price of the gun and the excise tax is lumped together in one price, and the 8% sales tax is added to that. So instead of $500 plus $55 plus $40 (8% of 500) equals $595, it's $555 plus $44.40 (8% of 555) equals $599.40.
Yeah, it's only $4.40 difference, but it's as if you pay, say, $1000 to the IRS for income tax, and then the state comes along and says "We're going to charge you sales tax on the tax you paid to the IRS. You owe us $80." Just like postage stamps are not supposed to be taxable, but now the states are charging sales tax for shipping on internet orders.
Please excuse the rant.
For example: suppose I buy a rifle that's worth $500. Counting the excise tax, that's $555. But here's the thing. When I look at my Sportsman's Warehouse receipt, I don't see a line for the excise tax. The price of the gun and the excise tax is lumped together in one price, and the 8% sales tax is added to that. So instead of $500 plus $55 plus $40 (8% of 500) equals $595, it's $555 plus $44.40 (8% of 555) equals $599.40.
Yeah, it's only $4.40 difference, but it's as if you pay, say, $1000 to the IRS for income tax, and then the state comes along and says "We're going to charge you sales tax on the tax you paid to the IRS. You owe us $80." Just like postage stamps are not supposed to be taxable, but now the states are charging sales tax for shipping on internet orders.
Please excuse the rant.
