Hunting Washington Forum
Equipment & Gear => Guns and Ammo => Topic started by: cryfowl on March 07, 2011, 01:21:57 PM
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So here is my scenario. I recently purchased a gun out of State and had it shipped to a FFL dealer here in WA. After a whole big shipping fiasco it finally showed up today. I go up to the dealership to pick it up and he tells me I have to pay WA Sales Tax on the gun. I argue saying I purchased it out of State. I'm told it doens't matter. I inquire that if any tax needed to be collected, shouldn't it have been collected by the dealer whom I purchased the gun through, not here. I have never paid Sales Tax on any of the guns I have purchased out of State before, only a $30 transfer fee. This includes other guns I have had shipped to the same dealer. He sticks to his guns and says he has to charge the tax. So before doing any of the paperwork I call another dealer I have worked with before. He says he only charges the $30 transfer fee and it is not his responsibility to collect Sales Tax, nor would he even know how much I paid for the gun. He adds that if a dealer is charging me tax then they are more than likely just pocketing the $$$. I tell the first dealer to pack the gun back up and ship it to the other dealer. So my question is, who is right?
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Some dealers do it. Its always a good idea to ask, before you have it shipped to them. I have a gun heading my way, "as of this morning" my local guy here only takes, custom new guns or used guns. He will not let you ship new guns to him. Because he wants to sell them to you, if you are buying new. They all tend to be a little diffrent.
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If I remember correctly, as of last year they are supposed to charge sales tax by law. More money for the state :bash:
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Caseyd is correct. And, they charge you tax on everything that's attached to the gun too. Scopes, mounts, slings, bipods, etc. Never have any of that stuff shipped with the gun.
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It might actually be a good thing as it will encourage people to spend their money with the gun dealers in the state in order to avoid paying sales tax AND shipping. It's always good to keep as much money in state as possible, and also a good thing to support local gun dealers so they can make enough money to justify staying in business.
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The first dealer is correct. Recently passed law requires FFL dealers to charge sales tax on guns shipped from out of state. If the second dealer isn't collecting the sales tax, he better hope the state dept. of revenue doesn't audit him.
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I never thought to ask because of all the guns I have ever shipped it had never come up before. Seemed out of the blue and like I said, because of the prior issues with this dealer I actually thought he was trying to rip me off again. I actually don't mind paying the taxes so long as its legit.
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It would be nice if they would inform their customers of the new requirement before you go ahead with the shipment of a firearm to them. :dunno:
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Very intresting. I wonder how they figure out the value of the guns? If you buy a gun for 100.00, and it is a 1000.00 rifle and has a 800.00 scope on it. But you got a great deal. How to they figure out what a scope and rifle is valued at :dunno: Or do they just go off the purchase price?
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I would guess that you would have to show a receipt? But why couldn't you just say the gun was a gift?
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Very intresting. I wonder how they figure out the value of the guns? If you buy a gun for 100.00, and it is a 1000.00 rifle and has a 800.00 scope on it. But you got a great deal. How to they figure out what a scope and rifle is valued at :dunno: Or do they just go off the purchase price?
I think they are supposed to treat it like the state does for vehicles. Blue book says that 97 truck you bought in Idaho for 5000 is worth 9000 so you owe us the taxes for a 9000 dollar truck!
So in this case you'd be paying taxes on $1800.
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:yike: Dang! No more shipping guns for me :chuckle:
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You don't pay sales tax on a gun that is shipped to an FFL dealer. You ONLY pay for the transfer. You did not buy the gun in Washington, so you do not pay sales tax on it. Call the state and see what they say instead of asking a bunch of us guys.
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Unless you can prove that you paid sales tax when you bought the gun, the FFL holder is obligated by law to collect the sales tax. You need a bill of sale saying how much you paid for the gun or they will charge you sales tax on the fair market value.
Be aware!! I was told that this pertains even if you are gifted a gun if the gun changes ownership.
RCW 82.12.020(3)
This is direct from my FFL guy.
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(3)(a) Except as provided in this section, payment of the tax imposed by this chapter or chapter 82.08 RCW by one purchaser or user of tangible personal property, extended warranty, digital good, digital code, digital automated service, or other service does not have the effect of exempting any other purchaser or user of the same property, extended warranty, digital good, digital code, digital automated service, or other service from the taxes imposed by such chapters.
(b) The tax imposed by this chapter does not apply:
(i) If the sale to, or the use by, the present user or his or her bailor or donor has already been subjected to the tax under chapter 82.08 RCW or this chapter and the tax has been paid by the present user or by his or her bailor or donor;
(ii) In respect to the use of any article of tangible personal property acquired by bailment and the tax has once been paid based on reasonable rental as determined by RCW 82.12.060 measured by the value of the article at time of first use multiplied by the tax rate imposed by chapter 82.08 RCW or this chapter as of the time of first use;
(iii) In respect to the use of any article of tangible personal property acquired by bailment, if the property was acquired by a previous bailee from the same bailor for use in the same general activity and the original bailment was prior to June 9, 1961; or
(iv) To the use of digital goods or digital automated services, which were obtained through the use of a digital code, if the sale of the digital code to, or the use of the digital code by, the present user or the present user's bailor or donor has already been subjected to the tax under chapter 82.08 RCW or this chapter and the tax has been paid by the present user or by the present user's bailor or donor.
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I think we need an attorney to translate. :dunno:
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Guess this will be the last new gun I buy......individual sales only from here on out.
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Guess this will be the last new gun I buy......individual sales only from here on out.
You will still pay sales tax if they legally cross state lines.
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Support your local gun shop! Buy guns from them. :twocents:
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Guess this will be the last new gun I buy......individual sales only from here on out.
You will still pay sales tax if they legally cross state lines.
I understand that, but I was referring to face to face transactions with private parties (Non-dealers)
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Support your local gun shop! Buy guns from them. :twocents:
I would love to be able to do that, but the gun I bought for under $1300 they sell for $1800. That's a no brainer in my book. Have competetive prices if you want my business.
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Me & my friends had this same thing happen to us while I was still in CA on AR lowers. We had done a lot of business with a shop in the past years & he never taxed anything before 2009, he started doing it in 2010.
He would just asked how much it was & he said just give him a realistic answer.
We started giving him the list of guns & lowers we wanted & the prices we could get them for on the internet, plus the transfer fee & he got us everything we wanted with no problem, even ammo. Once he knew he was losing the money he started carrying a lot more product.
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:chuckle:LOL....Can't legally charge sales tax for goods purchased in another State, so lets make up a new tax and call it a USE Tax and have it conveniently be the same percentage as sales tax. :o Why am I not surprised?
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Correct. It is a use tax. There are a couple ways to reduce the tax. If the out of state party provides a bill of sale, you will pay the tax on the bill of sale or you can pay the blue book value. The blue book value is left to interpretation. A brand new gun is worth MSRP. In this case you will want to get a bill of sale since you payed. A used gun is worth less. If you buy a used gun and the barrel is shot out of it, it is worth much less. The dealer transferring the gun in has to be able to show a balance in his books in the case of an audit.
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:chuckle:LOL....Can't legally charge sales tax for goods purchased in another State, so lets make up a new tax and call it a USE Tax and have it conveniently be the same percentage as sales tax. :o Why am I not surprised?
I believe this tax was established in the late 60's early 70's. It was never enforced. With state budget issues, it is being enforced.
Similar to the seatbelt law. I grew up never wearing seatbelts and never got a ticket. Now, I always wear one for two reasons, safety, and financially.
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I just bought a used AR complete rifle from an individual and had it shipped to my local dealer for FFL transfer. This is only the second gun I have bought out of state and shipped to the same dealer. The first time several years ago I wasn't charged tax. This time they charged tax. I had no bill of sale and he asked what I paid for it. I said what if I say $200? He said I will have to look up the value and charge it on that. I asked if he needed just the price of the gun without shipping and he said they need the total paid including shipping. I gave him a realistic number and called it good.
If I had known about the tax I would have had the owner ship me the upper and the lower to the dealer.
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Similar to the seatbelt law. I grew up never wearing seatbelts and never got a ticket. Now, I always wear one for two reasons, safety, and financially.
That's because it was never a law until recently!
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Similar to the seatbelt law. I grew up never wearing seatbelts and never got a ticket. Now, I always wear one for two reasons, safety, and financially.
That's because it was never a law until recently!
Sorry. I grew up in Iowa. It has been a law since the mid 90's.
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Use tax in Washington has been around a long, long time. It is difficult to enforce, so it hasn't been. Washington residents cross the border into Oregon, buy goods with no sales tax and bring them back to Washington. The goods are subject to use tax, but without stopping cars at the border it is very difficult to track for most purchases.
http://dor.wa.gov/content/findtaxesandrates/usetax/ (http://dor.wa.gov/content/findtaxesandrates/usetax/)
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When I bought my new Pistol this year I called around to a few FFL's to get a price for accepting and
transferring a hand gun from an out of state seller, and 3 out of 5 ffl's I called said they would have
to charge me a tax on top on the transfer fee's :yike:
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Similar to the seatbelt law. I grew up never wearing seatbelts and never got a ticket. Now, I always wear one for two reasons, safety, and financially.
That's because it was never a law until recently!
Actually,
Washington adopted the law July 11, 1986 for people age 16 and above in all seats.
Iowa was July 1, 1986 for people age 11 and above for the front seats only.
Both states were Primary enforcement.
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Yeah, well I guess to me, that IS "recently"! ;)
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Use tax in Washington has been around a long, long time. It is difficult to enforce, so it hasn't been. Washington residents cross the border into Oregon, buy goods with no sales tax and bring them back to Washington. The goods are subject to use tax, but without stopping cars at the border it is very difficult to track for most purchases.
http://dor.wa.gov/content/findtaxesandrates/usetax/ (http://dor.wa.gov/content/findtaxesandrates/usetax/)
Most who live in Washington and shop in Oregon work in Oregon also, Usually half or more of my wages every year are in Oregon,
so they can kiss my ass on paying a use tax in washington to bring goods accross when I pay Oregon state tax's.
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As Washington's sales tax rate goes higher and higher, more individuals purchase goods out of state to avoid it. I know of more than one individual who plans his major purchases for the fall when he goes to Montana to hunt (no sales in Montana either). Parts of King County have rates close to 10%, so buying in Oregon or Montana is like getting a 10% discount right from the start.
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I use an old friend in Oregon to do transfers since I'm down there frequently. You can't do handguns out of state though. My guy charges $25.00 for the transfer if anyone is looking for someone. He is in Oregon City.
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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.
If the selling price is not evident, it is up to the gun dealer to obtain this price by either requiring the purchaser to show the purchase price or to obtain that information from the out-of-state dealer. If, for whatever reason, the dealer is still unable to obtain the original purchase price, RCW 82.08.010 provides that the fair market value shall be used. It is the responsibility of the Washington gun dealer to determine the price in order to report and pay the sales tax due.
I work for an FFL in Spokane and we recently had to start this as well. Believe me, many are not happy about it.
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GUhunter-
What happens if someone gifts you a rifle in New York lets say. For example, my dad gives me a gun. Why should I pay tax on a gun that is given to me. Is there a way around the tax in that instance?
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Wondering the same thing myself. It says above, that the tax is collected on the SELLING PRICE. So I guess if you don't buy it you would not have to pay tax? Will be intresting to find out. You would probably just need a note saying this gun is a gift. Also if you won a gun at like DU or turkey federation would that be taxable?
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What if the guns aren't even gifts? In my case, my father in law wants me to store his guns for him and when he passes, he wants me to get them to the appropriate people listed in his will. Last year he shipped 8 firearms to me and of course we had to go through an FFL, but the guns are still his (even though the FFL paperwork now shows otherwise). If the FFL would have been required to charge sales tax in addition to the transfer fee, I assume it would have been difficult trying to explain the situation to get out of the tax.
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I've looked into it more and even if the gun is a gift, they are required to charge you the use tax based on the fair market value, which is determined by the FFL Dealer you are dealing with at the time of transfer. So if Grandpa sends you one of his collector guns worth $5000, then even though you didn't pay anything for it, you will be taxed on the $5000. It's BS and just another way for our Gov to reach deeper into our pockets to solve their problems. However, if you want to buy a new gun (say an AR type rifle) you could have the dealer, if they are willing, send you the upper assembly and stocks directly to your door since they are not regulated. Only the lower assembly needs to go to the FFL dealer and thus you only pay tax on that parts value. A new AR can go for well over $1000, but a stripped lower assembly can be bought for $150-300.
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Well, if the state's going to play the game that way, there's a way around paying the tax if it is a gift. Just have the "gifter" mail the gun to himself/herself at your address. No FFL is needed to mail a gun to yourself. If you don't go through an FFL the state won't know anything about it and you won't pay any tax. That's outright theft anyway in my opinion.
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There may be a loophole to this. If the gun is given to you and you're present to recieve it...then it is yours....so lets say my grandfather gives me that collector gun when I am there on vacation....but I need to ship it home....I am not transferring ownership across state lines....I transferred ownership in NY when we were both there...no transfer is required so no sales tax...mail it to yourself as Bobcat said.
Maybe that would work as long as that's the story.
:dunno:
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Do you have to mail it USPS? Doesn't UPS ask what you are shipping and if you say firearms, they require it to be shipped to an FFL? I'm not sure about the USPS.............
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Do you have to mail it USPS? Doesn't UPS ask what you are shipping and if you say firearms, they require it to be shipped to an FFL? I'm not sure about the USPS.............
No they don't ask. I've done it 5-7 times.
Never a question asked.
They just want to know if you want insurance.
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There are cameras on I 205 & I 5 because so many Wa residents were buying new tractors and such across the state line. They now take down you LP # so they can ascertain a use tax for major purchases out of state. I like a Sales tax because it makes it harder to take your money. I think it is important to pay tax, but i think it is more important for the STATE to be fiscally responsible. They haven't done that in 20years. :twocents:
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Here is another story. In January I went to South Dakota to buy my brother's pickup. My brother's price on it was $1000 but since I traded him some parts, the cash that traded hands was $640. The pickup is a 1992 dodge w250 diesel that my brother drove until the tranny gave out then he parked it in the weeds and bought another pickup. The pickup is a beater, rocker panels rusted out, driver side door is shot, fenders rusted, paint gone, no box and like I said, the tranny was bad. So I put a new tranny in it, made a plywood box and drove it home. When I went to register it the lady says, " so you paid $640?" I said yes. She says well the state values it at $5000 so you have to pay taxes on $5000. I said no I paid $640 so thats what I'm paying taxes on, if the state values it at $5000, I will sell it to them. She says is there anything wrong with it? I said where do you want me to start, you can look out the window and see whats wrong with it. She handed me a paper and said write down whats wrong with it even if you dont intend to fix the problems and have the seller sign it. I started writing down the problems and ran out of room on the paper. Anyway it ended up that I paid tax on what I paid for the pickup, not what the state had it valued at. The whole thing is bs anyway, why should anyone who buys a vehicle used have to pay taxes on it again? It has been paid when the vehicle was bought new.
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I understand being taxed for purchasing new items, but being taxed for a used items value in a person-person transaction...? That just screams b*ll*censored*
I'm fine paying where legitimate taxes are due, but this is just stupid
Great topic though, there are a few of my grandpa's rifles waiting for me in California. Was wondering how I'd go about getting it back up here
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Drive down and picke em up... cheaper than paying the freight AND the tax... Make it a family vaction. :twocents:
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I didnt read the whole thread so I'm guessing you probably already got your answer - and then some! So my comment has probably been said already too - but yes, they are supposed to charge you tax on the sale. The out of state or shipping dealer does not charge tax to the transferring dealer and is not supposed to collect it from out of state buyers. The tax is supposed to be collected at the point of sale. Also, I think regardless of the tax rate in the area where you do the transfer, for purchases over $700 they are supposed to charge you something like 7% tax, I think that is in the state law also. Every dealer is supposed to be collecting this tax by law. In the past, the dealer I use for FFL transfers was not collecting it, but they started last year. Of course there was alot of 'feedback' about this, so they posted a copy of the law in the store in a few places. So if you are finding a place that is not charging you tax, or didnt in the past, consider yourself lucky (and tell me where that is so I can have mine sent there too! :chuckle: ) , you are getting a deal and it may not last long either!
Oh and the dealer I use also requires a copy of the invoice showing the price - otherwise they will use the 'book value' to determine the tax :twocents:
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Very intresting. I wonder how they figure out the value of the guns? If you buy a gun for 100.00, and it is a 1000.00 rifle and has a 800.00 scope on it. But you got a great deal. How to they figure out what a scope and rifle is valued at :dunno: Or do they just go off the purchase price?
You are supposed to pay tax on the purchase price including shipping, regardless if it was for the firearm or accessories. WIth no invoice they use the book value. I tried to get the out of state dealer to give me an invoice that said $100 for the gun and $800 shipping but it didnt work - I had to pay tax on the full amount! :dunno:
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Not exactly a transfer but a gun forwarding question. A little foggy in what has been mentioned here since this situation is possibly a bit different.
My SIL is from Michigan. When he enlisted in the Navy 5 years ago he left his long guns behind. Ultimately ended his Navy tour of duty in Everett and has now settled down in Bothell in a new to them home with my daughter.
Since he owns the guns and wants his Dad to ship them out here, must he go through an FFL to do so? Other options?
And if the FFL is the only option, is he subjected to either a use or sales tax situation?
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I'm no expert but I say Yep - if they are out of state I think they have to be shipped to FFL. FFL transfer will be taxed on book value.
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That's kinda what I thought.
The move of the guns to this state triggers the tax.
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6X6 you can use UPS or FEDEX............
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Not exactly a transfer but a gun forwarding question. A little foggy in what has been mentioned here since this situation is possibly a bit different.
My SIL is from Michigan. When he enlisted in the Navy 5 years ago he left his long guns behind. Ultimately ended his Navy tour of duty in Everett and has now settled down in Bothell in a new to them home with my daughter.
Since he owns the guns and wants his Dad to ship them out here, must he go through an FFL to do so? Other options?
And if the FFL is the only option, is he subjected to either a use or sales tax situation?
The guns already belong to him. There is no transfer of ownership involved. I think if he dives into this a little he will find that he doesn't have to do the FFL transfer at all. The guns already belong to him. No guarantees, he should do his homework on his own, but I suspect that's what he'll find out.
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Ya know, I kinda wondered if just straight shipping since he owned them was an option.
Thanks you two.
Research time!!!
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I just ruined his day.....
They just went and flew to Michigan for their daughters 3rd birthday earlier this month.
The conversation went kinda like this:
"Hey, why the hell didn't you run your guns through baggage claim?"
"Uh, I didn't think you could."
"Well, not everyone drives to Alaska to go whack a moose for example."
"Yeah, I guess your right. I should have asked you about this sooner huh?"
"Ya think."
:chuckle:
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I'm no expert but I say Yep - if they are out of state I think they have to be shipped to FFL. FFL transfer will be taxed on book value.
This is very very intresting a friend of mine ;) has done 3 tranfers in the last 3 weeks at 2 diffrent dealers and has not paid sales tax at either location and both dealers have said you do not have to pay sales tax if the guns come from say a state like oregon. So don't know what to think now days. Glad I don't have to worry about it 8)
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I'm no expert but I say Yep - if they are out of state I think they have to be shipped to FFL. FFL transfer will be taxed on book value.
This is very very intresting a friend of mine ;) has done 3 tranfers in the last 3 weeks at 2 diffrent dealers and has not paid sales tax at either location and both dealers have said you do not have to pay sales tax if the guns come from say a state like oregon. So don't know what to think now days. Glad I don't have to worry about it 8)
Your friend got lucky.
I posted this earlier in this thread.
Unless you can prove that you paid sales tax when you bought the gun, the FFL holder is obligated by law to collect the sales tax. You need a bill of sale saying how much you paid for the gun or they will charge you sales tax on the fair market value.
Be aware!! I was told that this pertains even if you are gifted a gun if the gun changes ownership.
RCW 82.12.020(3)
This is direct from my FFL guy.
(3)(a) Except as provided in this section, payment of the tax imposed by this chapter or chapter 82.08 RCW by one purchaser or user of tangible personal property, extended warranty, digital good, digital code, digital automated service, or other service does not have the effect of exempting any other purchaser or user of the same property, extended warranty, digital good, digital code, digital automated service, or other service from the taxes imposed by such chapters.
(b) The tax imposed by this chapter does not apply:
(i) If the sale to, or the use by, the present user or his or her bailor or donor has already been subjected to the tax under chapter 82.08 RCW or this chapter and the tax has been paid by the present user or by his or her bailor or donor;
(ii) In respect to the use of any article of tangible personal property acquired by bailment and the tax has once been paid based on reasonable rental as determined by RCW 82.12.060 measured by the value of the article at time of first use multiplied by the tax rate imposed by chapter 82.08 RCW or this chapter as of the time of first use;
(iii) In respect to the use of any article of tangible personal property acquired by bailment, if the property was acquired by a previous bailee from the same bailor for use in the same general activity and the original bailment was prior to June 9, 1961; or
(iv) To the use of digital goods or digital automated services, which were obtained through the use of a digital code, if the sale of the digital code to, or the use of the digital code by, the present user or the present user's bailor or donor has already been subjected to the tax under chapter 82.08 RCW or this chapter and the tax has been paid by the present user or by the present user's bailor or donor
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I guess he must have a lucky rabbits foot or somthing :IBCOOL:
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I bought two shotguns last year from a dealer in Oregon. I paid Washington state use tax on both of them when I picked them up and completed the transfer in Washington. I think most FFL's in Washington are now collecting the Wa state use tax as required. I'll not likely buy any more firearms out of state.