Will net tax affect our hobby?

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vintovka

vintovka

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This concerns me. Seeing up to 10- 12 percent added to sales from some states. Some areas add local sales tax to state taxes as well. This is a lot of $ and now 39 states are collecting it, Does anyone else feel it will be a blow to shooters and sellers alike? I'd create a Poll but beyond me.
 
Missouri has a sales tax on certain sporting goods. That tax goes to fund the conservation department. I believe any increases to that tax requires approval by the voters.
 
You pay the same sales tax on everything you buy in a brick-and-mortar store at home...does that stop you from buying? Yes, the Internet was a nice loophole for a while, but that’s a thing of the past. So now people have to factor in sales tax when deciding on a purchase - just like they have to include shipping and a transfer fee.

If the extra $50 is going to break someone, then maybe they shouldn’t be making the purchase in the first place...or they should move to a state with no sales tax.
 
Many online sellers/retailers have been adding tax for a couple years already.

The internet loophole was really great for buyers when there was no sales tax and free shipping was included. Slowly but surely, both of those things have been eroding away.

I figure all this will help the brick and mortar survivors see some growth.
 
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I don't see a sales tax as an issue. TBH, the biggest threat to our hobby is not even anti-2A politicians, it is poorly run firearms manufacturers and ammunition companies. They have had a year to fix their supply chain issues and still nada. Is this going to be the norm until we have a new POTUS?
 
jeff-10 said:
I don't see a sales tax as an issue. TBH, the biggest threat to our hobby is not even anti-2A politicians, it is poorly run firearms manufacturers and ammunition companies. They have had a year to fix their supply chain issues and still nada. Is this going to be the norm until we have a new POTUS?
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This isn't a supply issue, it's a demand issue. No smart company is going to pay money to increase their production capabilities for a short term spike in demand. In fact, if they did then it might be enough to cause them to fold in a time of low demand. That would create a much bigger problem.
 
Technically, you were supposed to be reporting any purchases you made online that you didn’t pay sales tax on when you file with the IRS each year. You’ve been giving Uncle Sam his correct cut each year, right? ;)
 
vintovka said:
Seeing up to 10- 12 percent added to sales from some states.
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Your state raised its sales tax 10-12%? Wow, where do you live?

chicharrones said:
The internet loophole was really great for buyers when there was no sales tax
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There has never been an "internet loophole". Sales tax is due from residents on out of state purchases, and you've either been paying it, or committing tax fraud, since there was an internet.

The rate of tax fraud is reduced when States force retailers to collect the tax, but that doesn't mean it hasn't always been due.
 
edwardware said:
Your state raised its sales tax 10-12%? Wow, where do you live?


There has never been an "internet loophole". Sales tax is due from residents on out of state purchases, and you've either been paying it, or committing tax fraud, since there was an internet.

The rate of tax fraud is reduced when States force retailers to collect the tax, but that doesn't mean it hasn't always been due.
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You know what we mean by using the term. No collection or enforcement made it feel like a loophole to millions. Not much different than paying cash in some situations.

Due to your reply, I'll increase the internet tax "self payers" total to 13 persons. :)
 
Most people obliviously go through life paying no attention to what the government does unless the media tells them they need to pay attention.

I tried to explain that each firearm is already taxed to some dude at the gun store recently. He told me I was wrong. I told him to look up the “Pittman-Robertson Act”. He told me he didn’t have time for that. This is the kind of ignorance that just floors me sometimes.

https://www.mdwfp.com/conservation/who-pays-for-it/pittman-robertson-act.aspx
 
jeff-10 said:
I don't see a sales tax as an issue. TBH, the biggest threat to our hobby is not even anti-2A politicians, it is poorly run firearms manufacturers and ammunition companies. They have had a year to fix their supply chain issues and still nada. Is this going to be the norm until we have a new POTUS?
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1. The "supply chain" isn't broken.
2. Demand exceeds supply.
3. Panic buying isn't new, this has happened multiple times in the last twelve years but people still think something is wrong with the system,.
4. Thinking "well, just build more ammo factories or gun factories!" shows a lack of understanding of the market. Companies that did that in 2008- 2016 like Daniel Defense and Silencerco wound up laying off quite a few employees when the panic buying wave stopped.
5. Similarly, there are always more than a few expert businessmen who see the massive increase in gun sales and think it the time to open a gun store or get into the gun biz....those guys will be belly up because they were years late to the party. The ship sailed without them. They are expecting to cash in and folks are already out of cash and inventory is going to the larger, established accounts.
6. The only "norm" is forgetting that this happens all the time and needs another thread.
 
shafter said:
This isn't a supply issue, it's a demand issue. No smart company is going to pay money to increase their production capabilities for a short term spike in demand. In fact, if they did then it might be enough to cause them to fold in a time of low demand. That would create a much bigger problem.
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It is supply chain issue for lots of things. Go find some treated lumber. I am finally supposed to be taking delivery of a replacement dish washer tomorrow, but it has been a 5 week wait and I paid through the nose.
 
Tax on internet sales is old news in most states... Florida and Missouri still haven’t enacted a tax on remote sales but most states did it 12 to 24 months ago.

I can’t imagine much impact on firearms. It makes local stores more competitive with online sales.
 
I'd be more concerned when they begin adding a tax on each round of ammunition.....that will most certainly affect shooting.
 
Aftershock51 said:
Technically, you were supposed to be reporting any purchases you made online that you didn’t pay sales tax on when you file with the IRS each year.
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And, you are allowed to use those sales taxes paid as a deduction. Trick is, the standard deduction tends to be larger.
12% sounds rather high. I find my 7.625% rate (6.25% State 1.25% local 0.125% for Jerry world) high enough.
Looking here: https://www.salestaxinstitute.com/resources/rates
Only place I see double digit sale tax is Puerto Rico, at 11.25%.
Any one charging more than that probably needs re-examining.
 
Well 45 states now do it and CA is in the lead with city tax added to state tax. Many CA cities are already at 10.25% plus some have special taxes on gas. I'm in Or where we have higher property taxes in lieu of any sales tax. The number of folks who buy (bought) on the net just to beat taxes may be huge. Some are just waking up to the tax issue when they get their invoices from sites like GB. Many sellers are seeing a big increase in NPBs that may be due these same tax issues. GB and others currently do not/cannot give an tax estimate on auctions as end price is not set. You must know/be aware your own state and city taxes.
 
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Gun Broker pay is nice because it adds it all up and gives a total that includes the final sales price, tax and shipping.

Yes, the tax now needs to be self-added when setting a high bid. If you don’t pre-plan it can be a shock... especially when many sellers do the 3% added for credit card purchases and then 30 to 50 bucks for shipping a handgun. The final damages are often a hundred bucks or more over the highest bid when you’re done. o_O

Stay safe.
 
Since one of my hobbies is selling consignment guns online it probably will have some effect. It started out as a business, but I found that I would never make a living at it. Makes for some good right-offs though. I honestly believe that it will help the brick-and-mortars.
 
I always self-reported on the KY tax form even when my tax guy told me I was being silly. Made me wonder what I was paying for if that’s the kind of advice I was getting. It’s absolutely worth $35-40 extra to not worry how I would come out on a state level audit. Now I don’t have to because everybody is already charging the 6% at the time of purchase.

Nobody likes paying taxes, but I figure if I can’t afford the 6% extra then I don’t need to be buying hobby goods.


Riomouse911 said:
Gun Broker pay is nice because it adds it all up and gives a total that includes the final sales price, tax and shipping.

Yes, the tax now needs to be self-added when setting a high bid. If you don’t pre-plan it can be a shock... especially when many sellers do the 3% added for credit card purchases and then 30 to 50 bucks for shipping a handgun. The final damages are often a hundred bucks or more over the highest bid when you’re done. o_O

Stay safe.
Click to expand...

Buying a handgun on GunBroker only makes sense if it’s from someone who has access to USPS or high volume common carrier rates.
 
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