Sales Tax from Out of State Transfers??

[Brett]

Hi, I am looking to purchase a handgun online. I have called a couple of shops close by, and both said they charge sales tax on the cost of the gun. Is this correct? Since this is an out of state purchase, I thought they are not supposed to charge sales tax? Thanks for the help!

 

[sloughfoot]

They are right, you are wrong. Welcome to the Forum.

 

[cosermann]

I've never had a dealer charge sales tax on the purchase price of a gun. Why would they? They're not selling you the gun/you're not buying a gun from them - all they're doing is the transfer.

Most dealers do charge sales tax (or include it) in their transfer fee from what I've seen/heard.

However, that doesn't mean you're not responsible to declare the purchase and pay the use tax on your returns.

DOR: Frequently Asked Questions - Businesses

 

[melensdad]

Hi, I am looking to purchase a handgun online. I have called a couple of shops close by, and both said they charge sales tax on the cost of the gun. Is this correct? Since this is an out of state purchase, I thought they are not supposed to charge sales tax? Thanks for the help!

If you follow the letter of the law, YOU are required to pay the sales tax on EVERY out of state purchase, internet purchase, catalog purchase, etc that you buy over the course of the year. YOU are supposed to report the purchases on your Indiana State Income Tax form by filling in amount of tax due to the state. From a practical standpoint, it is virtually impossible for most people to follow the law to the letter.

There is no reason that a shop doing a transfer can't charge the tax, it covers their butt in an audit and absolves you from the responsibility of reporting/paying the tax.

The fact that someone is not collecting the sales tax does not absolve you from having to pay the sales tax.

 

[IndyMonkey]

No tax on labor.

 

[SmileDocHill]

They are right, you are wrong. Welcome to the Forum.

This is my new sig. line and should be rule number 1 in the "general introduction and rules of being an INgunOwners member".

 

[Indy_Guy_77]

Those dealers who are telling you that they collect the sales tax on out-of-state purchased and transferred-through-them firearms are full of BS.

Ask them to please tell you the actual code authorizing them.

THEY are not selling the firearm.

Call around and find an HONEST FFL with which to do your transaction.

-J-

 

[Hiram2005]

No tax on labor.

Yet.

 

[steve666]

No tax on labor.

This isn't labor, it's a service. However, I've never been charged sales tax on a transfer (Pop Guns and Wanamaker Guns).

 

[HighpowerIndiana]

Tax

No sales tax on a transfer, it's a service. Indiana code says it has to be a retail transaction of tangible personal property.

 

[IndyGunSafety]

A transfer is a non taxable service.

 

[curraheeguns]

No sales tax on a transfer, it's a service. Indiana code says it has to be a retail transaction of tangible personal property.

This!!!

I have never charged sales tax on a transfer and have been told not to by my accountant.

But as stated above, you are supposed to claim that purchase and pay tax on it as an out of state purchase on your state taxes.

 

[sloughfoot]

Just to clarify my earlier post, retailers don't charge sales tax. They merely collect it and send it on to the State. The State is getting serious about getting their cut. The individual is supposed to account for out of state purchases on their 1040 every April. Nobody does.

The state could conceivably charge the retailer for not collecting the tax on a known out of state purchase. Because the retailer usually has intimate knowledge of the transaction and is supposed to be an Agent of the Dept of Revenue. I don't like it but.....They are desperate for funds.

Beware retailers. And I am one too..I read all the notices that they send me. I dread the day they come to audit my books, and I have nothing to hide. All you FFL's have books that show firearms transfered with no sales tax collected. I wouldn't want to explain that. Good luck.

 

[Indy_Guy_77]

Just to clarify my earlier post, retailers don't charge sales tax. They merely collect it and send it on to the State. The State is getting serious about getting their cut. The individual is supposed to account for out of state purchases on their 1040 every April. Nobody does.

The state could conceivably charge the retailer for not collecting the tax on a known out of state purchase. Because the retailer usually has intimate knowledge of the transaction and is supposed to be an Agent of the Dept of Revenue. I don't like it but.....They are desperate for funds.

Beware retailers. And I am one too..I read all the notices that they send me. I dread the day they come to audit my books, and I have nothing to hide. All you FFL's have books that show firearms transfered with no sales tax collected. I wouldn't want to explain that. Good luck.

Yes, but a "retailer" who gets shipped a gun from out of state isn't selling the gun. They're only transferring it, which is a service. And, as such, is non-taxable.

FFL holders who are "collecting sales tax" from people are, more than likely, just pocketing the money.

Any of you readers who are paying "sales tax" to the FFL holder that does your transfer, you need to report their unethical behavior to the appropriate authorities.

 

[rxcrm]

Service or Labor the really isnt a difference.

 

[bRAD]

I agree 100%. They can't collect and pay a tax on something that they have never sold. How would you possibly account for it in the books? Any FFL doing this is most likely pocketing the sales tax money.


FFL holders who are "collecting sales tax" from people are, more than likely, just pocketing the money.

Any of you readers who are paying "sales tax" to the FFL holder that does your transfer, you need to report their unethical behavior to the appropriate authorities.[/quote]

 

[hotrodtba]

Those dealers who are telling you that they collect the sales tax on out-of-state purchased and transferred-through-them firearms are full of BS.

Ask them to please tell you the actual code authorizing them.

THEY are not selling the firearm.

Call around and find an HONEST FFL with which to do your transaction.

-J-

Yes, but a "retailer" who gets shipped a gun from out of state isn't selling the gun. They're only transferring it, which is a service. And, as such, is non-taxable.

FFL holders who are "collecting sales tax" from people are, more than likely, just pocketing the money.

Any of you readers who are paying "sales tax" to the FFL holder that does your transfer, you need to report their unethical behavior to the appropriate authorities.

We have a winner!!! Repped.

 

[mike4sigs]

We have a winner!!! Repped.

I dont know how to rep ! (if somebody can tell me how i will )

+ 1

 

[Indy_Guy_77]

I dont know how to rep ! (if somebody can tell me how i will )

+ 1

You hit the little broccoli-looking gray-ish icon under the posting person's screen name then you can hit "I approve" and type a message or, "I disapprove".

Approve = "+"
Disapprove = "-"

-J-

 

[hotrodtba]

You hit the little broccoli-looking gray-ish icon under the posting person's screen name then you can hit "I approve" and type a message or, "I disapprove".

Approve = "+"
Disapprove = "-"

-J-

Otherwise known as scales.