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Discussion Starter #1
Just to double check, but when you get a gun transferred to a local FFL (not a person, a gun shop), the FFL holder doesn't charge you sales tax for the gun, right? Last I heard he only charges you the FFL fee and the background check fee, but I wasn't sure. No tax, right?
 

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Mine charges me nothing, but I've given him plenty of business.
 

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There was a thread on this 6 months ago.

No, the dealer isn't supposed to charge you sales tax, because he
didn't sell it to you.


Joe
 

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Discussion Starter #4
Yeah, I remember that thread. I was just making sure, like I said, I forgot what we'd decided. (And I couldn't find the old one.) Thanks a lot for the answers, guys, that's all I need to know. No more Ramen noodles for me, I can officially afford my next 1911. :rock:
 

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Try to establish a relationship with a local dealer. Buy from him when you can. That way, when it comes time to order in a gun off the internet or another dealer, he'll be more likely to do the transfer at a reasonable cost or free. NEVER put your local dealer in a position where he's competing for a sale where you might ask him to do the transfer!
 

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Discussion Starter #6
Good policy. I have a pretty solid buddy that's a gunsmith who I could send the gun to (trouble is he also sells the same brand of gun from time to time, but at much higher prices), and I have a gunshop owner who I don't know very well, but that I'm on good terms with. Who would you reccomend sending it to? Would my gunsmith friend look at the transfer as competition or would he look at it and figure that I'm at least giving him some buisiness by letting him handle the transfer?
 

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Gunbroker.com has a list and has the dealers fees if they've put themselves on the list for the area I'm sure they welcome the business 25 30 bucks just to receive a package in the mail ain't to shabby.
 

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razorgrind said:
Gunbroker.com has a list and has the dealers fees if they've put themselves on the list for the area I'm sure they welcome the business 25 30 bucks just to receive a package in the mail ain't to shabby.

It's a bit more complicated than that. From the time the dealer
receives the firearm until it is picked up by the buyer, say 4 hours
to 4 days, he has total liability for it. At minimum, he needs insurance
in case it is stolen from him while waiting for it to be picked up. My
dealer has a safe for such items. The cost of the safe has to be
covered by that 25-30 bucks.

Actually, mine charges 20. But then I'm a lucky guy.

Joe
 

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Discussion Starter #9
Yeah, I think my buddy charges $25 too, but maybe he'll charge less if I pick it up same day. (Same minute, maybe, depending upon how the 12-16 week wait is treating me!)
 

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When I'm ready to buy a new gun, I go to my regular FFL and ask if he'd like to match the offer. Sometimes he say's yes, other times he tells me to go for it, especially if it's a used gun. He's not competing for the deal since he doesn't have a comparable model. Never charges me, because he knows I respect him. Plus, what does it cost him to receive the gun...a little time logging it in? I've got a CCW, so there's no background check fees to deal with. I'd never charge a regular customer transfer fees!
 

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40dcoe said:
The seller should charge sales tax, not the dealer handling the transfer.
Most states exempt sales going out of state from thier state sales tax. In most states the seller should not charge his states sales tax. Some large companies that have stores in the purchaser's state charge that state's sales tax because they are represented by a business in that state.

If the end purchaser pays the seller directly for the gun and the seller merely transferes it through an FFL in his state, and that FFL charges nothing for the gun (transfer fee not relevant here) then the transferring dealer does not charge tax.

Exception 1: if there is no tax paid in the seller's state, and the sale is from a dealer, then the purchaser is required in most all states to report the purchase and pay the sales tax to his state.

Exception 2: if the transferring dealer collects money for the gun to be sent to the selling FFL, then the transferring dealer is required to collect his state's sales tax in most all states.
 

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1saxman said:
Then you don't need the FFL in the first place.

You do if it's shipped, but not if it's face-to-face. You cannot ship
a gun to someone who doesn't have an FFL, even if it's your same
state.


Joe
 

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Discussion Starter #16
pdoppenheim said:
Exception 1: if there is no tax paid in the seller's state, and the sale is from a dealer, then the purchaser is required in most all states to report the purchase and pay the sales tax to his state.

Exception 2: if the transferring dealer collects money for the gun to be sent to the selling FFL, then the transferring dealer is required to collect his state's sales tax in most all states.
Okay, you may need to explain this. I'm ordering from George Talia in Michigan, I live in Ohio. He's charging me $40 to ship to my FFL, who also owns a gunshop in my state. Do I owe my state tax?
 

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If that happened in Alabama - no, you would not owe state tax.

I don't know 100% on this for all states, but if a business DOES NOT HAVE A PHYSICAL STORE, within a specific state, and you reside in a state they do not have a store in, then the selling business does not charge you state tax.

If the business DOES have a storefront within the state, then they do charge sales tax, even if they ship it.


In your scenario - you're having a firearm shipped TO a gun-store in your state, but you're not BUYING it from that store. You've already bought it out of state, so you would not be charged state sales tax within your state.

At least that's my understanding.
 

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40dcoe said:
You do if it's shipped, but not if it's face-to-face. You cannot ship a gun to someone who doesn't have an FFL, even if it's your same state. Joe

Sorry, Joe, but that's incorrect. Please refer to http://www.atf.treas.gov/firearms/faq/faq2.htm#b

B7 and B8 read:

(B7) May a nonlicensee ship a firearm through the U.S. Postal Service?

A nonlicensee may not transfer a firearm to a non-licensed resident of another State. A nonlicensee may mail a shotgun or rifle to a resident of his or her own State or to a licensee in any State. The Postal Service recommends that long guns be sent by registered mail and that no marking of any kind which would indicate the nature of the contents be placed on the outside of any parcel containing firearms. Handguns are not mailable. A common or contract carrier must be used to ship a handgun.

[18 U.S.C. 1715, 922(a)(3), 922(a)(5) and 922 (a)(2)(A)]


(B8) May a nonlicensee ship a firearm by common or contract carrier?

A nonlicensee may ship a firearm by a common or contract carrier to a resident of his or her own State or to a licensee in any State. A common or contract carrier must be used to ship a handgun. In addition, Federal law requires that the carrier be notified that the shipment contains a firearm and prohibits common or contract carriers from requiring or causing any label to be placed on any package indicating that it contains a firearm.

[18 U.S.C. 922(a)(2)(A), 922(a) (3), 922(a)(5) and 922(e), 27 CFR 478.31 and 478.30]

HTH
 

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Thanks Blackmore, I've got that FAQ bookmarked. Now before everyone starts sending guns all over their state, remember that that's Federal law...states can expand on that as they see fit. And FedEx won't ship any kind of firearm,in-state or otherwise,unless one of the parties has an FFL. That's not a law,that's just their policy.
 

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Kimber4Ever said:
Okay, you may need to explain this. I'm ordering from George Talia in Michigan, I live in Ohio. He's charging me $40 to ship to my FFL, who also owns a gunshop in my state. Do I owe my state tax?

Probably. But no one ever pays it.


Joe
 
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