Online firearms purchasing and state sales tax

[reddog81]

Expect within the next 5 years that EVERY online purchase will be taxed.

We’re basically already there. I’m pretty sure every state but Florida and Missouri have passed economic nexus laws.

 

[newfalguy101]

Probably, like everything else, there's an address based app a business can incorporate into their computer system that checks who they have to collect tax for, and the rate.

I sometimes have problems because the USPS lumps all zip codes surrounding the large city I live near into that city for the town in the address. This causes problems because that city has certain local gun and ammo laws that my town does not.

Buying on line, the vendors app will occasional void the transaction because it looks like I live in that city. So I have to call and convince the vendor I don't actually live there.

Yes there is software, but, unlike all the thousands of freebie aps, companies have to pay for that software...and the updates...and the tech support..and and and....

 

[dogtown tom]

In the 1980s and '90s, I know that after the ATF audited several shops, they (the ATF) would "suggested" the state audit their books for sales tax, which led to the loss of their state sales licenses and consequently their FFLs. Don't know how the ATF regulations read today, but back then it was clear that the buyer had to pay sales tax to someone.

Not exactly. That's why we are where we are today.
Until the recent USSC decision, the only time sales tax was collected was when state law permitted or required it. In those states that didn't collect sales tax on out of state purchases, they had (as mentioned above) a corresponding "use tax" that is supposed to be remitted to your state. Virtually no one did.

While ATF requires a licensee to abide by all federal/state/local laws, it has always been outside their purview to examine a dealers records to see if the dealer was collecting sales tax.

The ATF was and remains, at least in part, a tax collection agency.

Not since 2003. ATF's tax collection role was moved to the Alcohol and Tobacco Tax and Trade Bureau, (TTB) which is in the Treasury Dept. ATF is part of Homeland Security. They don't even touch the $200 for NFA tax stamps, that payment is separated before ATF ever gets the NFA forms.

 

[BlueHeelerFl]

Technically, if you drive out of state to make a purchase you are still supposed to pay use tax....

About 20-25 years ago there were stories that NYS had people monitoring store parking in NJ and noting if people with NYS license plates were buy appliances and other big purchases.

Around that time NYS sued online cigarette sellers and got all the invoices for their residents that made purchases and webt after them for back taxes

 

[George P]

Back in the 60s and 70s, folks would make cigarette runs down to NC and bring them back. The price difference was amazing and folks who normally wouldn't snitch a candy bar would gladly buy those illegal smokes.

 

[Steve S.]

If you think about taxes (on any item such as firearms); every time a dollar moves, it gets taxed. So if you follow that dollar thru the economy and extrapolate the lifespan of that dollar’s travel, eventually the government gets the entire dollar.

 

[dogtown tom]

If you think about taxes (on any item such as firearms); every time a dollar moves, it gets taxed. So if you follow that dollar thru the economy and extrapolate the lifespan of that dollar’s travel, eventually the government gets the entire dollar.

Not true.
First, "the dollar" isn't taxed, the product or service is.
When I buy firearms from a distributor (or when any retailer buys at wholesale), state sales tax is not charged or collected. The state issues the retailer a sales tax permit as well as forms for tax exempt purchases (ex. items purchased for resale). If I sell a firearm to another licensee, he gives me a tax exempt certificate and sales tax is not charged or collected. If he subsequently sells that firearm at retail....THEN he collects sales tax and remits to the state.

If that retail customer later decides to sell that firearm to his brother in law, most states do not require collection of sales tax. Similar to garage sales, occasional sales are often not subject to state sales tax.

 

[Virginia Jim]

“People will go to great lengths to avoid paying sales tax.”
I consider it my patriotic duty to avoid taxes legally. Conversely, I consider it my patriotic duty to pay taxes that are un avoidable.
Have you never negotiated with a dealer, saying “ I’ll give you $xxx out the door.”? You are not trying to avoid paying tax. You are simply negotiating the final price. The responsibility to pay the tax to the government is on the seller.