Post by: high country on January 19, 2010, 06:26:04 PM
Home / Get a form or publication / Publications by subject / Tax Topics / Interstate transfers of firearms
Interstate transfers of firearms
Washington residents sometimes purchase firearms from out-of-state persons. Because of state and federal laws, a firearm purchased by a Washington resident must be sent from the out-of state person to a federally licensed gun store located in Washington State.
Once the Washington gun dealer has conducted the required background checks the dealer will transfer the firearm to the Washington resident.
The following information provides instructions for the taxability of such transfers.
Is the transfer of a firearm subject to sales tax?
In an interstate transfer of firearms the Washington gun dealer is required to collect retail sales tax from the Washington resident on the purchase price of the firearm. The retail sales tax is collected from the Washington customer at the time the customer takes possession of the firearm. Sales tax is collected on the total selling price, including freight and/or delivery charges and other amounts added, such a an amount for insurance coverage.
However, sales tax does not apply on the service charge for processing the required Federal and State forms and contacting the National Instant Criminal Background Check System (NICS) when the fee is stated separately from the selling price of the firearm and freight and/or delivery charges, insurance, etc.
How are these transactions reported on the Excise Tax Return?
When completing the Excise Tax Return the gross selling price of the firearm is reported under the retailing business and occupation (B&O) tax classification and the retail sales tax lines. The dealer is allowed a deduction under the retailing B&O tax classification for “consignment sales.”
The fee received (when separately stated on the purchase invoice) for the transfer service is reported under the service and other activities B&O tax classification. Sales tax is not collected on this transaction.
Applicable law
RCW 82.12.040(1) states:
Every person who maintains in this state a place of business or a stock of goods, or engages in business activities within this state, shall obtain from the department a certificate of registration, and shall, at the time of making sales of tangible personal property, extended warranties, or sales of any service defined as a retail sale in RCW 82.04.050 (2)(a) or (3)(a), or making transfers of either possession or title, or both, of tangible personal property for use in this state, collect from the purchasers or transferees the tax imposed under this chapter. The tax to be collected under this section shall be in an amount equal to the purchase price multiplied by the rate in effect for the retail sales tax under RCW 82.08.020. (Emphasis added).
Post by: WDFW-SUX on January 19, 2010, 06:28:20 PM
Post by: high country on January 19, 2010, 06:29:06 PM
Post by: Lowedog on January 19, 2010, 06:30:54 PM
Post by: WDFW-SUX on January 19, 2010, 06:32:35 PM
Post by: lokidog on January 19, 2010, 06:36:17 PM
Hasn't this been in effect for a long time? I bought a rifle online probably 8-10yrs ago and had to have it shipped to a local gun shop. Most gun shops charge a small fee to process the paperwork.
Shops charge 20 or so bucks for the ffl tansfer. That paperwork fee is not subject to sales tax according to the post, but apparently now the price of the gun and shipping is. Sucks! Buy local and face to face, no taxes and noone knows....
Post by: chrisb on January 19, 2010, 06:37:12 PM
Post by: WDFW-SUX on January 19, 2010, 06:44:34 PM
Post by: CastleRocker on January 19, 2010, 06:47:41 PM
Post by: Curly on January 19, 2010, 06:48:16 PM
Post by: Curly on January 19, 2010, 06:49:34 PM
Post by: Lowedog on January 19, 2010, 07:12:17 PM
Post by: carpsniperg2 on January 19, 2010, 07:16:59 PM
Post by: high country on January 19, 2010, 07:42:58 PM
Post by: cwuwildcat on January 19, 2010, 08:31:42 PM
Post by: actionshooter on January 19, 2010, 08:46:44 PM
I just bought off of GB from a shop in Idaho, 3 weeks ago. I paid my local FFL $25 for his fee, plus $2 in tax on his FEE. I wasn't charged a DIME in tax for the actual rifle sale. The RCW that is quoted only covers items bought from an out of state business, that also maintains an in-state store also, such as Cabelas. If you buy something from Joes gun shack in nuckenfutz, Wyoming, and they dont have a store in Washington, no sales tax. If you order over the web from Cabelas in Nebraska, because they have a store in Lacey, they have to charge state sales tax for the state you are in. Absolutely nothing new. No reason to panic people.
From my dealings on this subject, the post above is correct.
Post by: high country on January 19, 2010, 09:00:19 PM
Post by: grousetracker on January 19, 2010, 09:19:20 PM
Post by: WDFW-SUX on January 20, 2010, 07:58:05 AM
I just bought off of GB from a shop in Idaho, 3 weeks ago. I paid my local FFL $25 for his fee, plus $2 in tax on his FEE. I wasn't charged a DIME in tax for the actual rifle sale. The RCW that is quoted only covers items bought from an out of state business, that also maintains an in-state store also, such as Cabelas. If you buy something from Joes gun shack in nuckenfutz, Wyoming, and they dont have a store in Washington, no sales tax. If you order over the web from Cabelas in Nebraska, because they have a store in Lacey, they have to charge state sales tax for the state you are in. Absolutely nothing new. No reason to panic people.
God I hope thats right...
Post by: jackelope on January 20, 2010, 11:32:33 AM
they have no forms for anyone to fill out, no way to record the tax, etc.
but they know that they will at some point soon regardless of whether or not the place you bought the gun from has a store in WA.
Post by: WDFW-SUX on January 20, 2010, 11:39:19 AM
Post by: Curly on January 20, 2010, 12:02:26 PM
I'm a little confused though. There was an RCW that was quoted......doesn't that mean that it is currently a law? ???
Post by: jackelope on January 20, 2010, 12:16:52 PM
I'm a little confused though. There was an RCW that was quoted......doesn't that mean that it is currently a law? ???
if you're asking me I have no clue...this is pert near word for word what the guy told me. I've transferred a few rifles through there in the past so i know them. figure it was a good guy to ask.
Post by: Bofire on January 20, 2010, 01:29:49 PM
That is the idea anyway.
Carl
Post by: jackelope on January 20, 2010, 01:39:40 PM
Post by: high country on January 20, 2010, 04:53:43 PM
so what happens if it's a private sale?
same as a dealer.
I talked to a bunch of ffl guys in spokane today. apparently they all got scared into charging the tax per the law. one told me to have it shipped from a private party and to get a reciept for $200.00 another told me to go to idaho and not hand our blood hungry state the $$$. if you can get transfers w/o the tax, consider yourself lucky, but do not be amazed if you get audited and are asked to pay the tax later.....it sux.
Post by: WDFW-SUX on January 20, 2010, 05:01:03 PM
Post by: jackelope on January 20, 2010, 05:33:43 PM
Post by: jackelope on January 20, 2010, 05:35:31 PM
Post by: WDFW-SUX on January 20, 2010, 05:42:52 PM
It might violate the commerce clause of the constitution but I dont know for sure...
I bet we can get cheep FFL transfer in Whoregon.
Post by: Curly on January 20, 2010, 06:00:19 PM
I've got like 15 guns to get sent here to me from my dad in NY...i'm in for gas, Sux.
I would think you'd get out of paying the tax just by saying you didn't purchase the guns......you are just having them shipped.
My father-in-law sent 2 guns to me a few weeks ago and I had to have an FFL do the "transfer". It isn't even a transfer of ownership because I'm just holding the guns for him while he is going thru some issues. I paid twenty bucks for each of the guns for the transfer and the dealer didn't about a sale price or collecting tax on the transaction.
Post by: Bofire on January 20, 2010, 06:50:59 PM
the state is losing out on tax due to internet shopping so they want thier cut. how ever they make it work, it does not matter where you buy(this is how it is now) it matters where the product is delivered. If you buy a car in Seattle and live in Centralia you save due to a lower tx, and vice-a-versa. If you buy outastate via the internet the vendor is supposed to charge you local tax rate. I bet they can figure out how to track it.
It aint just guns folks, I was amazed no one screamed about this, a lot of small cities with lots of car lots, are losing a lot of money over this.
Carl
Post by: high country on January 20, 2010, 06:55:11 PM