Receiving firearms through FFL - taxable?

[andy t]

Greetings,

I am thinking of purchasing a pistol from out of state. Since this will have to go through FFL, will I have to pay sales tax when I accept the transfer?

Thanks,

Andrew.

 

[dreppucci007]

No, you won't have to, Andrew. You will just have to pay the Transfer Fee that your FFL may charge you.

What're you getting?

 

[JonJ]

I checked with a local FFL to do a transfer for me and when he ran though his "fee schedule", he said that he would charge me 5% MA sales tax. Needless to say, I don't use him for transfers.
Ask first.

 

[Len-2A Training]

You are NOT purchasing the gun from him, only transferring it thru him. Transfer is a "service" and not taxable . . . yet in MA. Therefore he is violating MGLs if he tries to collect sales tax on the entire price you paid the real seller. You COULD report him to MA DOR's Tax Fraud Division! HOWEVER, read on . . .

MGLs actually has a "Sales and Use Tax" and thus if you buy something out of state you are legally obligated to pay the Use Tax (which ironically is the same as the Sales Tax ) to the Commiewealth. They even put a line item on your MA Income Tax Return for you to report and pay the Use Tax.

I seriously doubt that anyone ever reports and pays Use Tax for out-of-state purchases, but it is the law. But you and I owe that obligation to the Commiewealth and NOT THE DEALER (who might actually be pocketing the tax money to add to his profit margin).

So, I would not report the guy ONLY because you probably don't want to become "part of the investigation" as they might just slap his wrist and nail you for mucho money in taxes, fines and interest.

As Jon suggested, just tell him what he's doing it illegal and that you are taking ALL your business elsewhere and will so advise your friends . . . and then drop the subject/issue.

 

[Rob Boudrie]

The state IS going after "use tax" for out of state tobacco purchasers -http://blog.ntu.org/main/post.php?post_id=174

 

[Len-2A Training]

Yes, but some differences here from my reading of the blog post:

- Apparently some "tobacco tax" bill became law that gives states the specific clout to go after this money.

- Taxes are HUGE per carton and since most folks aren't just buying a carton at a time, I imagine that it amounts to >$50/order that the states like MA might recover in taxes. That's raising a big red flag for the bull!

- There probably aren't many sources of these cig sales that they have to nail to get a very big "ROI".

Going after the millions of mom and pop eBay operations and web-stores selling all sorts of things might garner a few bucks/sale, but not worth the investment of investigators time to bust folks over. Thus, they settle for scare tactics on the buyer.

So yes, they will go after dealers in large (tax) ticket items, but not likely to have much success wrt the sales of a toy at the Toys 'r Us in NH!

 

[drgrant]

I checked with a local FFL to do a transfer for me and when he ran though his "fee schedule", he said that he would charge me 5% MA sales tax. Needless to say, I don't use him for transfers.
Ask first.

I've run into the same thing..... basically this "tax" goes right into their
pocket. Frankly I'd rather use an FFL that has a higher fee than to
use one that attempts to collect sales tax on a gun.


-Mike