Sales tax on transferred guns??????

[Len-2A Training]

Pilgrim,

Simple way to end the argument. Ask him to SHOW YOU the particular state law that mandates sales tax paid to HIM on sales amount that he doesn't collect!

 

[Lynne]

Better yet, print out the site that Len posted and show that to them.

 

[JonJ]

I'd want to see the transferring dealer ring the cost of the transfered firearm into his cash register and demand a receipt showing the price and tax paid.

This is hypothetical as I use an FFL who does not play tax shenanigans.

 

[Mikey]

The problem is that I can see many dealers getting pissed off at you for questioning them, if you have already paid and want your money back then thats one thing but if you are looking for a transfer it is probably better to find a dealer you dont need to fight with. Last thing I guess you need is hating to go to the dealer b/c you dont get along.

 

[tele_mark]

You can do what I did and print out the Guide to Usage and Sales Tax, and this entire thread with the pertinent parts highlighted.

In my case, that was all that was needed, and the FFL didn't put up a fight. If it had escalated further, I had one more trick. I printed up the following in duplicate and would've required him to sign both along with me before I paid for the transfer. I never had to present it :

I, XXXXXX, of XXX Arms, XXX, MA 01XXX, am attesting that on this day, February 10th, 2007, that I am charging Mark Schneider, of XX NXXXX, Leominster, MA, 01453, a Transfer Fee for the amount of $20 for the transfer of a firearm from XXX of XX, NH into Massachusetts to the possession of Mr. Schneider.

I also attest, that I am charging Mr. Schneider, and not releasing the handgun into his possession, until Mr. Schneider pays, in addition to the $20 transfer fee, Sales Tax for the sale of this pistol, in the amount of 5% of the sale price of $449, for a total of $22.45, and the total of the transaction being $42.45. I also acknowledge that Mr. Schneider in fact completed the transaction for the sale of the pistol, and paid funds for such to XX Gun Shop of XX, NH and not to me, XXX XXX.

 

[codenamepaul]

Anyone ever buy a gun for $1 ?????
I'd be buying a bunch for a dollar-bet a bunch of people would be selling them for a dollar if they knew why too.

 

[JonJ]

Anyone ever buy a gun for $1 ?????
I'd be buying a bunch for a dollar-bet a bunch of people would be selling them for a dollar if they knew why too.

Ah, but I know one dealer whose transfer fee is $30 or 10% of the value of the firearm, whichever is higher. He determines the value and then charges Mass sales tax.

 

[Pilgrim]

Anyone wanna comment about the 7% sales tax that some are collecting?


They collect the tax illegally and set the tax rate at whatever they want?

 

[Mikey]

Isn't this something that GOAL could be handling, like maybe sending out letters to dealers explaining to them that they are not suppose to collect sales tax on transfers and that they are making it known to all GOAL members not to pay it. Kind of a public announcement to all. Or would that be biting the hand that feeds you?

 

[Len-2A Training]

The MA DOR will take good care of them if it is reported (and documented).

Just like the AG "stings", the word on the street will get out and some of these greedy bastards will change their ways rather than risk jail time for tax fraud.

 

[john m]

I was told you need to pay the sales tax. I asked "what are you selling"? I didn't pay the sales tax.

 

[JoeT]

Here's the info for a Plymouth shop as taken from the gunbroker.com FFL search:


I don't understand how sales tax can be collected on a service.

Am I th only one that caught this

M&M PLIMOTH BAY OUTFITTERS
6 Main St
Plymouth, MA 02360
email: Click here to email me
phone: 508-747-6338

Hours: 9:00AM-5:30PM Mon-Sat; 11:00am-4:00pm Sun
Transfer fee: 10% $30.00 MIN PLUS SALES TAX

so say I buy a Barrett for $7500... M&M charges $750 for the transfer and 5% tax? $787.50 to fill out paperwork that others charge $15-$25 for? That would be reason enough for me to never buy anything there

 

[Len-2A Training]

This specifically addresses the issue of sales tax as it applies (NOT) to "services".

http://www.mass.gov/?pageID=dorterminal&L=5&L0=Home&L1=Individuals+and+Families&L2=Help+%26+Resources&L3=Tax+Guides&L4=Guide+to+Trustee+Taxes&sid=Ador&b=terminalcontent&f=dor_help_guides_abate_amend_trustee_issues_SalesandUse&csid=Ador

Personal or professional services:
Accounting, insurance, legal and medical services, as well as services such as haircuts and car repairs are not taxable. Please note: Items sold in addition to services, such as a bottle of shampoo from a salon or parts for a car repair, are taxable and must be itemized separately on the bill. Massachusetts tax law treats some products as services and therefore exempts them from the sales tax. Other products, however, may combine taxable and nontaxable elements. Still other products, although labeled custom or a service, may not meet the legal definition for tax purposes. ( 830 CMR 64H.1.1 Service Enterprises 7)

The transfer of a firearm can be looked upon as the same as a "legal service" as it is a legal requirement to be done by a MA Dealer and Federal FFL.

 

[ARV]

I've never been there. Based entirely on what I've seen posted about them on this forum, I have decided that I will never go there.

Ditto

 

[Remsport Mfg]

We don't and no shop should be collecting tax on a transfer service. You are getting ripped off! We charge $25.00 for transfers not a % of value that is just another rip off. We will also let you use our conference room so you can have a safe haven to do face to face transfers and not charge you anything. Some of these guys (other dealers) feel that they lost the sale and want to punish you for not buying from them. I look at it this way I didn't lose the sale I created an opportunity to make a new customer. To bring him or her into the shop and see what we have to offer, no pressure to purchase anything. Hopefully he or she will remember us when they are ready to purchase or tell there friends about us.

 

[TNHunter]

We don't and no shop should be collecting tax on a transfer service. You are getting ripped off! We charge $25.00 for transfers not a % of value that is just another rip off. We will also let you use our conference room so you can have a safe haven to do face to face transfers and not charge you anything. Some of these guys (other dealers) feel that they lost the sale and want to punish you for not buying from them. I look at it this way I didn't lose the sale I created an opportunity to make a new customer. To bring him or her into the shop and see what we have to offer, no pressure to purchase anything. Hopefully he or she will remember us when they are ready to purchase or tell there friends about us.

Good for you. I want to come buy something from you just because of this attitude. It sounds like one of the keys to success.

 

[vellnueve]

If I'd gone to M&M to receive an incoming transfer, I would have paid $680. Good enough reason never to shop there again (not that I will ever buy guns in MA again)