Question for FFL's

[barres]

A local FFL has told me that, if I purchase a new firearm from an on-line dealer in another state and have it shipped to him for the paperwork, that he must charge sales tax on the purchase price of the firearm. This contradicts everything I have ever heard. I must admit, though, that this is the first time I've ever gotten any opinion on this from an FFL.

Any sources for relevant law would be much appreciated.

[Diode]

I have bought 2 gun online and had shipped to a FFL here and did not pay sales tax. Although I am not FFL.

[AG-EE]

I have only paid sales tax on the transfer charge, which seems reasonable to me.

[Charles L. Cotton]

My FFL doesn't not charge tax on guns bought out of state.

Chas.

[KBCraig]

The purchase price is not part of the dealer's business, nor is it any of his business what you paid.

I pay a transfer fee, and that's it. Since your FFL wouldn't have these transfers listed as purchases and sales in his business accounting system, I suspect he doesn't intend to send to Austin any "sales tax" he might collect.

Sounds like a handy way to charge you a backdoor commission of 8.25%, right into his pocket.

Kevin

[BobCat]

My FFL told me to pay for the gun over the phone with a credit card, because if he ordered it and paid for it - and I paid him for it - he would have to charge me tax, since he would actually be the one selling it to me.

As long as I paid the out-of-state seller, and my FFL just did the transfer, he only charged for the transfer, and no sales tax.

Regards,
Andrew

[txinvestigator]

KB is correct. A business can only collect sales tax on his sales or services, not those of others.

If he tried that, I would report him to the State Comptroller.

[barres]

KB is correct. A business can only collect sales tax on his sales or services, not those of others.

If he tried that, I would report him to the State Comptroller.

This is how I understood the law, but I don't know where to begin looking to prove it.

Heck, maybe I shouldn't even bother. There are other FFL's to deal with. Even if I pay $20-25 more for the transfer itself somewhere else, I'll be saving $25+ overall by not having to tack on the sales tax afterward. And I have a good relationship with this FFL for other things, so I don't want to screw that up over whether or not I owe him sales tax.

[graysoncountyffl]

I voted. I like to keep everthing as simple as possible.

[carlson1]

KB is correct. A business can only collect sales tax on his sales or services, not those of others.

If he tried that, I would report him to the State Comptroller.