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Sales tax

The Big Guy

Regular Member
Joined
Oct 20, 2009
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1,962
Location
Waco, TX
When I went to pick up my new 1911 at my transfer dealer, he told me that as of January of this year he is required to collect sales tax on this item. Even though he did not sell it. I bought if from Bud's online. There are many problems with
this, one being that the transfer dealer is being held in servitude to the state with no compensation. No different than running background checks and collecting the state fee.

He asked the sales tax people of the state what was he to do if there was no receipt stating a selling price. They told him that he would have to determine the "value" of the gun, and charge sales tax accordingly. This is exactly what the state used
to do with used cars. They did not charge you on the sale price, but on what THEY determined the value was. They were beat on this and had to stop doing it. Seems the revenuers don't learn.

Seems a letter to my Assembly person and State Senator is in order. (for all the good it will do)
 
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MAC702

Campaign Veteran
Joined
Jul 31, 2011
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6,338
Location
Nevada
Yes, there was quite the discussion about this on the Nevada Shooters site, and everyone universally agrees with you, including the dealers. There is already a very well-supported bill in front of the legislature right now to make it absolutely clear that firearms meet the existing exemptions in state laws for occasional interstate purchases/transfers. It should go into effect in July, if I remember correctly. Someone at the tax department did this on their own, and are wrongly citing existing laws, but they apparently have the authority to enforce it until they are officially overridden. The governor's office has been silent.
 

The Big Guy

Regular Member
Joined
Oct 20, 2009
Messages
1,962
Location
Waco, TX
Yes, there was quite the discussion about this on the Nevada Shooters site, and everyone universally agrees with you, including the dealers. There is already a very well-supported bill in front of the legislature right now to make it absolutely clear that firearms meet the existing exemptions in state laws for occasional interstate purchases/transfers. It should go into effect in July, if I remember correctly. Someone at the tax department did this on their own, and are wrongly citing existing laws, but they apparently have the authority to enforce it until they are officially overridden. The governor's office has been silent.
An interesting point also would be that I have a C&R FFL, and no one from gubment has told me that I have to pay on the firearms I buy and ship directly to me.

TBG
 

The Big Guy

Regular Member
Joined
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Messages
1,962
Location
Waco, TX
Another thought from my clouded brain.

As a holder of a C&R FFL, if I buy an old handgun, am I required to register it with the locals or would that be exempt under the federal license? And if I did have to, would I have to go the background route even though the feds
checked me out and found me fit to have these shipped directly to me?

Kind of interesting point is that when you get a C&R you have to officially notify the Chief law enforcement officer in your jurisdiction giving him/her a copy of the application. When I did this in Henderson they were confused at best and didn't
know what to do with it.

TBG
 

MAC702

Campaign Veteran
Joined
Jul 31, 2011
Messages
6,338
Location
Nevada
As a holder of a C&R FFL, if I buy an old handgun, am I required to register it with the locals or would that be exempt under the federal license? And if I did have to, would I have to go the background route even though the feds
checked me out and found me fit to have these shipped directly to me?

Kind of interesting point is that when you get a C&R you have to officially notify the Chief law enforcement officer in your jurisdiction giving him/her a copy of the application. When I did this in Henderson they were confused at best and didn't
know what to do with it.

TBG
Yes, when I receive a handgun shipped directly to my door through my license, I am required to register it. That said, there is no notification to anyone that I have received that handgun, and my records are only available to ATF, not to local LEO without a specific warrant. Handgun registration isn't that big a deal.

There is no background check for items purchased with your license, including if you buy them from a dealer in town. If it qualifies for your license, you can use it, and it becomes a licensee to licensee transfer.

A CLEO is not required to do anything with the copy of the application. It is merely a required courtesy notification in case they have reason to object. I know plenty of Henderson residents with C&R licenses, though. Hard to believe they've never seen one before.

As an interesting fact, if you let your C&R license expire before reapplying (instead of renewing) you can destroy all your records. :)
 

DON`T TREAD ON ME

Regular Member
Joined
May 17, 2009
Messages
1,233
Location
Las Vegas, Nevada, USA
Here is the law cited by the state...

NRS 372.050  “Retail sale” and “sale at retail” defined.

1.  “Retail sale” or “sale at retail” means a sale for any purpose other than resale in the regular course of business of tangible personal property.

2.  The delivery in this State of tangible personal property by an owner or former owner thereof or by a factor, or agent of such owner, former owner or factor, if the delivery is to a consumer or person for redelivery to a consumer, pursuant to a retail sale made by a retailer not engaged in business in this State, is a retail sale in this State by the person making the delivery. He shall include the retail selling price of the property in his gross receipts.

[6:397:1955]
Here is an actual letter to a local FFL concerning the matter, along with a transaction receipt.
View attachment Retail tax paperwork0001.pdf

Here is Occasional sales defined (it is listed as an exemption)

NRS 372.320  Occasional sales.  There are exempted from the taxes imposed by this chapter the gross receipts from occasional sales of tangible personal property and the storage, use or other consumption in this State of tangible personal property, the transfer of which to the purchaser is an occasional sale.

[63:397:1955]

My end analysis is Theft.
 

The Big Guy

Regular Member
Joined
Oct 20, 2009
Messages
1,962
Location
Waco, TX
One of the more annoying parts of this "law" is that my FFL must charge me tax on the transfer fee as well. Guess he didn't know that as he didn't charge for it.

TBG
 
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MAC702

Campaign Veteran
Joined
Jul 31, 2011
Messages
6,338
Location
Nevada
One of the more annoying parts of this "law" is that my FFL must charge me tax on the transfer fee as well. Guess he didn't know that as he didn't charge for it.
Well, there has always supposed to have been sales tax on fees related to the transfer of tangible, taxable goods, so that part is consistent. The problem is that the firearm itself isn't supposed to be taxed as it clearly meets the state's already existing exemption as an occasional sale. But now we have to wait for the new bill to pass to force the a-hole in the tax office to follow the existing law.
 

The Big Guy

Regular Member
Joined
Oct 20, 2009
Messages
1,962
Location
Waco, TX
Well, there has always supposed to have been sales tax on fees related to the transfer of tangible, taxable goods, so that part is consistent. The problem is that the firearm itself isn't supposed to be taxed as it clearly meets the state's already existing exemption as an occasional sale. But now we have to wait for the new bill to pass to force the a-hole in the tax office to follow the existing law.
If I understood the gobbeldy goop in the letter posted by Tread, the occasional sale refers to who you are buying from. If I buy from an out of state individual who is not engaged in the business of selling, no tax. If I buy from an out of state retailer, there is tax to be collected by the transferring FFL. In either regard, the FFL accepting the transfer must charge for the fee charged to handle the transfer.

TBG
 
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