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Thread: Sales tax on gun trade?

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    Sales tax on gun trade?

    Doing a gun trade with an out of stater, so going through FFL. Am I going to have to pay sales tax on a straight across trade?
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    I would think so ..

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    Sales tax on gun trade?

    Absolutely, yes. They are now required to collect sales tax. In addition, they will collect sales tax on anything else in the package: i.e. total price. I bought a lower from ou of state with bunch of other stuff, and got dinged on it. I actuall ended up talking him out of it, only because an itenorized receipt was in the box. In other words, if buying a bunch of stuff in addition to any firearm, in my experience is is better done as seperate transactions! Mind you this is referring to shipping.

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    maybe not..

    I traded a sailboat with an individual in Oregon. I went to Depart. of Revenue local office and found out that if it was a straight equal-for-equal trade there is no sales tax. YMMV

    Doesn't hurt to check. May save you a few bucks.

    j

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    Sales tax on gun trade?

    Yes

    Vehicles are different than anything else

    I have had a personal conversation with DOR on this issue when I was with Champion.
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    Sales tax on gun trade?

    Quote Originally Posted by NavyLCDR View Post
    You are still required to pay use tax, equivelant to the sales tax rate on items that you purchase out of state. Suggesting that accessories be delivered seperately from the firearm so the FFL does not collect the tax on the accessories does not change the tax that is required by the RCW to be paid...
    Very good to know, was definately not clear to me. Okay, then I would recommend IF* you finding you want accessories, to make a seperate purchace shipped to your home!
    Last edited by FattyKrack; 07-24-2013 at 05:12 PM.

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    Quote Originally Posted by theaero View Post
    Doing a gun trade with an out of stater, so going through FFL. Am I going to have to pay sales tax on a straight across trade?
    Yes. A dealer is required by law to collect either Use or Sales tax on a firearms transfer. Any tax collected by a business out of state (say you buy a gun at a store in Idaho and they charge you sales tax before shipping it to WA) gets to be applied and is deducted from the amount due to WA. If there is no sales invoice/bill of sale that denotes a sale price the dealer must ascertain the fair market value of the firearm and collect the tax against that. The Use Tax is the same rate as sales tax. On top of all that the dealer is required to collect the tax against the TOTAL price paid for the item. So if you buy something on GunBroker and the dealer charges you CC fees and Shipping, that gets included in the price that we have to collect against.
    Last edited by sirpuma; 07-24-2013 at 04:38 PM.

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    Regular Member amlevin's Avatar
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    Quote Originally Posted by NavyLCDR View Post
    You are still required to pay use tax, equivelant to the sales tax rate on items that you purchase out of state.
    I'm sure that everyone here sends their check to the State after purchasing all their ammo, accessories, and reloading components from out of State suppliers. right?
    "If I shoot all the ammo I am carrying I either won't need anymore or more won't help"

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    Quote Originally Posted by theaero View Post
    Doing a gun trade with an out of stater, so going through FFL. Am I going to have to pay sales tax on a straight across trade?
    IMHO: (and an opinion is all this is)...IF the person you are trading with can supply you with his history of paying out of state tax on the firearm he is trading...that would be deductible from any sales tax due in WA.

    This is how it works with everything else.

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    Campaign Veteran gogodawgs's Avatar
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    Quote Originally Posted by hermannr View Post
    IMHO: (and an opinion is all this is)...IF the person you are trading with can supply you with his history of paying out of state tax on the firearm he is trading...that would be deductible from any sales tax due in WA.

    This is how it works with everything else.
    No it is not, call the DOR and ask them. You will pay the sales tax on 100% of the item's value and will not deduct any other already paid. This is done each time the item changes hands....
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    Quote Originally Posted by gogodawgs View Post
    No it is not, call the DOR and ask them. You will pay the sales tax on 100% of the item's value and will not deduct any other already paid. This is done each time the item changes hands....
    Unless it is purchased for resale by a business.
    Throw me to the wolves and I will come back leading the pack.

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    Quote Originally Posted by gogodawgs View Post
    No it is not, call the DOR and ask them. You will pay the sales tax on 100% of the item's value and will not deduct any other already paid. This is done each time the item changes hands....
    Not accurate. The law concerning Use Tax does apply out of state sales tax to the WA tax collected ... IF the person taking possession is the person who paid that tax.

    http://dor.wa.gov/docs/reports/2010/...2010/08use.pdf
    In computing use tax, a
    credit is allowed for any sales or use tax paid in other states.


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    What is the law on collecting sales tax on guns you WIN in a shooting competition? I WON 3 Glock pistols at one GSSF match one year. Glock sends a 1099 form for income tax for anything over $600 in one year. My total winnings on the 1099 for that year from Glock was $1600.
    Now since this was income how could the FFL dealer charge me for sales tax? It was not a sale but income earned. I payed a federal income tax on the 3 guns and since Washington does not have a state income tax like Oregon I should not pay any other tax.
    Does this all make sense or sound right or do I still have to pay a sales tax on competition winnings when having the guns transferred directly from Glock to my FFL here in Washington?

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    BOHICA, coyote .

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    Regular Member amlevin's Avatar
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    Quote Originally Posted by hermannr View Post
    IMHO: (and an opinion is all this is)...IF the person you are trading with can supply you with his history of paying out of state tax on the firearm he is trading...that would be deductible from any sales tax due in WA.

    This is how it works with everything else.
    Quote Originally Posted by gogodawgs View Post
    No it is not, call the DOR and ask them. You will pay the sales tax on 100% of the item's value and will not deduct any other already paid. This is done each time the item changes hands....
    That pretty much works only for items you previously owned and are bringing them into WA. Example: a vehicle or boat, that when you re-register it here showing that sales tax was paid elsewhere will give you a pass on the agent collecting more.

    A "Trade" is merely a purchase where you use an item as payment. The tax is due on the "value" assigned to the "trade item".
    "If I shoot all the ammo I am carrying I either won't need anymore or more won't help"

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    Quote Originally Posted by coyote View Post
    What is the law on collecting sales tax on guns you WIN in a shooting competition? I WON 3 Glock pistols at one GSSF match one year. Glock sends a 1099 form for income tax for anything over $600 in one year. My total winnings on the 1099 for that year from Glock was $1600.
    Now since this was income how could the FFL dealer charge me for sales tax? It was not a sale but income earned. I payed a federal income tax on the 3 guns and since Washington does not have a state income tax like Oregon I should not pay any other tax.
    Does this all make sense or sound right or do I still have to pay a sales tax on competition winnings when having the guns transferred directly from Glock to my FFL here in Washington?
    Use tax must be collected against the market value or on the value listed on the 1099. The 1099 is a value for the firearms and the form is for your Federal taxes, not WA taxes. Glock is valuing the hand guns at a set value and that is what the dealer should be calculating against. In the absence of such a form or invoice the dealer must determine the fair market value on their own. I have a couple books and I also look at the completed auctions on Gunbroker.

  17. #17
    Regular Member amlevin's Avatar
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    Quote Originally Posted by sirpuma View Post
    Use tax must be collected against the market value or on the value listed on the 1099. The 1099 is a value for the firearms and the form is for your Federal taxes, not WA taxes. Glock is valuing the hand guns at a set value and that is what the dealer should be calculating against. In the absence of such a form or invoice the dealer must determine the fair market value on their own. I have a couple books and I also look at the completed auctions on Gunbroker.
    This thread points out all the reasons I don't buy firearms unless I can touch, feel, and buy, all at the same time. I prefer new so that means just find a Dealer that has what I want, at a price I can live with, and then avoid all further hassle. NO shipping, transfer fee, or sales tax that's based on some arbitrary figure if no invoice accompanied the transfer.
    "If I shoot all the ammo I am carrying I either won't need anymore or more won't help"

    "If you refuse to stand up for others now, who will stand up for you when your time comes?"

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