theaero
Regular Member
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?
-
We are now running on a new, and hopefully much-improved, server. In addition we are also on new forum software. Any move entails a lot of technical details and I suspect we will encounter a few issues as the new server goes live. Please be patient with us. It will be worth it! :) Please help by posting all issues here.
-
If you are having trouble seeing the forum then you may need to clear your browser's DNS cache. Click here for instructions on how to do that
-
Please review the Forum Rules frequently as we are constantly trying to improve the forum for our members and visitors.
Sales tax on gun trade?
- Thread starter theaero
- Start date
davidmcbeth
Banned
I would think so ..
FattyKrack
Regular Member
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.
jackem
New member
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
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
gogodawgs
Campaign Veteran
Yes
Vehicles are different than anything else
I have had a personal conversation with DOR on this issue when I was with Champion.
Vehicles are different than anything else
I have had a personal conversation with DOR on this issue when I was with Champion.
FattyKrack
Regular Member
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:
sirpuma
Regular Member
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:
amlevin
Regular Member
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?
hermannr
Regular Member
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.
gogodawgs
Campaign Veteran
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....
Jeff Hayes
Regular Member
Unless it is purchased for resale by a business.
sirpuma
Regular Member
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/Tax_Reference_2010/08use.pdf
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?
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?
Ajetpilot
Regular Member
BOHICA, coyote .
amlevin
Regular Member
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".
sirpuma
Regular Member
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.
amlevin
Regular Member
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.