{I originally posted this in another thread, thought I'd put it here, in it's own thread.}
On a related topic, here's another thing to think about when deciding to buy online vs. local store: Sales tax.
Currently there seems to be a misconception that buying online from an out of state dealer means you don't have to pay any sales tax, whereas if you buy it from a store locally you do, so you're saving money if you buy online.
Now while the out of state dealer won't collect tax from you if you're not a resident of his state, you are in fact supposed to report these out of state purchases to your own state's department of revenue and pay the sales tax on it to them.
[waits for everyone to stop laughing]
Okay, although technically you are required to do this it's currently more of an honour thing, and truth be told most states' depts of revenue don't have the means to investigate it if you don't. However, most of the state governments have gotten together and are about to put into place a streamlined sales tax program that allows sellers to collect tax on purchases made anywhere in the U.S., outside of their own states. This means that you'll be paying the same sales tax on a rifle whether you bought it online from a different state or from your local gun shop.
Sort of takes away that particular advantage of buying online, eh?
Here's a link to Indiana's Dept of Revenue website, which gives some more info. You can check with your own state's Dept of Revenue and ask if they're going to be participating in this new program.
http://www.in.gov/dor/streamlined/index.html
but which state would get the sales tax? The buyers state or the sellers state?
The seller would collect the sales tax and report it to the buyer's home state government, at the buyer's state's sales tax rate. This would replace the current, virtually non-existant honour-system reporting of sales tax to his state government by the buyer himself.
Up until this point, various states' tax laws have been incompatible with each other and it's been too confusing for a seller in one state to collect tax on behalf of other states. They're moving to simplify general sales tax law across the board, however. This way a seller can register to collect tax for another state's dept. of Revenue with little or no fuss and file returns electronically.
Currently a seller isn't required to register to collect and report other states' sales tax, but if he voluntarily registers I believe his business is eligible for certain tax incentives that might entice him.
That's about all I know at the moment, just thought it might be of interest since a lot of folks buy guns, and other things, online.
On a related topic, here's another thing to think about when deciding to buy online vs. local store: Sales tax.
Currently there seems to be a misconception that buying online from an out of state dealer means you don't have to pay any sales tax, whereas if you buy it from a store locally you do, so you're saving money if you buy online.
Now while the out of state dealer won't collect tax from you if you're not a resident of his state, you are in fact supposed to report these out of state purchases to your own state's department of revenue and pay the sales tax on it to them.
[waits for everyone to stop laughing]
Okay, although technically you are required to do this it's currently more of an honour thing, and truth be told most states' depts of revenue don't have the means to investigate it if you don't. However, most of the state governments have gotten together and are about to put into place a streamlined sales tax program that allows sellers to collect tax on purchases made anywhere in the U.S., outside of their own states. This means that you'll be paying the same sales tax on a rifle whether you bought it online from a different state or from your local gun shop.
Sort of takes away that particular advantage of buying online, eh?
Here's a link to Indiana's Dept of Revenue website, which gives some more info. You can check with your own state's Dept of Revenue and ask if they're going to be participating in this new program.
http://www.in.gov/dor/streamlined/index.html
but which state would get the sales tax? The buyers state or the sellers state?
The seller would collect the sales tax and report it to the buyer's home state government, at the buyer's state's sales tax rate. This would replace the current, virtually non-existant honour-system reporting of sales tax to his state government by the buyer himself.
Up until this point, various states' tax laws have been incompatible with each other and it's been too confusing for a seller in one state to collect tax on behalf of other states. They're moving to simplify general sales tax law across the board, however. This way a seller can register to collect tax for another state's dept. of Revenue with little or no fuss and file returns electronically.
Currently a seller isn't required to register to collect and report other states' sales tax, but if he voluntarily registers I believe his business is eligible for certain tax incentives that might entice him.
That's about all I know at the moment, just thought it might be of interest since a lot of folks buy guns, and other things, online.
