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Thread: Use Tax?

  1. #1
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    I am not sure how this use tax works. Some dealers charge it, and some don't. What gives? Anybody have a link that goes into more detail about this, or an RCW?

    Thanks

  2. #2

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    I am no lawyer, but here is my understanding of it...

    When you buy something from a retailer in WA you pay "Sales Tax". The retailer is required to collect it and turn it over to the state.

    When you buy something from out of state via internet or mail-order (such as a firearm, sent to a WA FFL to transfer) you are supposed to trot down to the State Revenue folks and pay a "Use Tax" (same rate as a sales tax) on the item.

    Depending on your point of view, the reason for it is either to close the "unfair advantage" interstate businesses have over local merchants or just to make sure the state gets a cut of every nickle you spend.SinceWA relies so heavily on sales taxes for funding, they "loose" money when you spend dollars out-of-state.

    That is also why sometimes you have to pay sales tax, evenon an out of state internet purchase, one caveat of the laws say if the business has a "presence" in the state, they have to charge and collect the sales tax, even if your purchase doesn't go through the in-state branch/store.



  3. #3
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    Washington has recently entered into a "compact" with a few other states requiring internet sales being subject to the use tax.

  4. #4
    Regular Member just_a_car's Avatar
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    Sorry all, but the legislation that Christine Gregoire pushed and signed into law was a "request" of other states and businesses to collect use tax/sales tax on sales from out of state.

    Without a presence of the online merchant in the state, it is prohibited by the Federal Government for a state to require tax be collected on goods purchased from another state without that company having a presence in that state.

    That's one of two pieces of legislation that she's used to try to "loophole" her way around federal and state laws. The other being the DUI Checkpoint bill.

    See this article by the Seattle Times on the issue: http://seattletimes.nwsource.com/htm...bnettax23.html
    B.S. Chemistry UofWA '09
    KF7GEA

  5. #5
    Regular Member amlevin's Avatar
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    911Boss wrote:
    SinceWA relies so heavily on sales taxes for funding, they "loose" money when you spend dollars out-of-state.


    I loose money whenever I spend money in Washington State. I loose it at the rate of 8.5% of all the money I spend and get damn little in return. Roads that have potholes larger than the state of Wyoming, Ferries that are rusting to the point of sinking unexpectedly, ridiculous response times from Law Enforcement, a State Legislature that is out of control, and so on, and so on.

    I have a suggestion for the State. Repeal ALL Taxes. Sit down and devise a meaningful budget that serves the needs of the state's citizens (not Political and Special Interests), levy taxes that support the budget with ZERO exemptions. An example of a broken system is shown under Washington State's current system of property tax. Currently Washington State has exemptions to the propertax that tower above the dollars collected by a ratio of 3:1. This means that 25% of the property owners are paying 100% of the taxes. Start out by fixing that and a Sales Tax might be unnecessary.


    "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?"

  6. #6
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    911Boss wrote:
    Depending on your point of view, the reason for it is either to close the 'unfair advantage' interstate businesses have over local merchants or just to make sure the state gets a cut of every nickle you spend.
    I'm inclined toward the latter interpretation, because "use tax" doesn't just applied to interstate purchases. I just bought a used car directly from the owner and when I went to the DOL subagent to get it registered in my name, they hit me with $400+ in "use tax" on the purchase of the vehicle. Note, this car was sold to its first owner in Washington, so the state already collected sales tax on the car the first time it was sold.

    So when I bought sv_libertarian's M1895 Nagant revolver off him, I guess technically I owe the state ~$7.50 in "use tax" on that purchase as well.

  7. #7
    Regular Member amlevin's Avatar
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    Euromutt wrote:
    So when I bought sv_libertarian's M1895 Nagant revolver off him, I guess technically I owe the state ~$7.50 in "use tax" on that purchase as well.
    Be sure to get that check in the mail soon:celebrate
    "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?"

  8. #8
    Regular Member amlevin's Avatar
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    sorry for the double post. got error message so I did it again
    "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?"

  9. #9
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    I'm getting that error when I post, as well. Still posts fine, tho.

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