Buying online

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patterson
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Buying online

#1

Post by patterson »

When buying firearms online from one of the popular online shops out of state that dont charge sales tax do you have to pay texas sales tax?

ntexaschl
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Re: Buying online

#2

Post by ntexaschl »

If the company/seller has a physical presence within the Sates of Texas, then sales tax will be applied. For example, I purchased an AR 15 from a company/seller located in Michigan. That company has no retail outlet here in Texas, Therefore, no sale tax was applied to the sale. A small FFL transfer fee was the only additional expense paid.

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patterson
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Re: Buying online

#3

Post by patterson »

ntexaschl wrote:If the company/seller has a physical presence within the Sates of Texas, then sales tax will be applied. For example, I purchased an AR 15 from a company/seller located in Michigan. That company has no retail outlet here in Texas, Therefore, no sale tax was applied to the sale. A small FFL transfer fee was the only additional expense paid.
The Kentucky company only charges taxes if shipped in kentucky but i was wondering do i pay texas sales tax somehow
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carlson1
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Re: Buying online

#4

Post by carlson1 »

patterson wrote:
ntexaschl wrote:If the company/seller has a physical presence within the Sates of Texas, then sales tax will be applied. For example, I purchased an AR 15 from a company/seller located in Michigan. That company has no retail outlet here in Texas, Therefore, no sale tax was applied to the sale. A small FFL transfer fee was the only additional expense paid.
The Kentucky company only charges taxes if shipped in kentucky but i was wondering do i pay texas sales tax somehow
No taxes are owed.
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mrvmax
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Re: Buying online

#5

Post by mrvmax »

carlson1 wrote:
patterson wrote:
ntexaschl wrote:If the company/seller has a physical presence within the Sates of Texas, then sales tax will be applied. For example, I purchased an AR 15 from a company/seller located in Michigan. That company has no retail outlet here in Texas, Therefore, no sale tax was applied to the sale. A small FFL transfer fee was the only additional expense paid.
The Kentucky company only charges taxes if shipped in kentucky but i was wondering do i pay texas sales tax somehow
No taxes are owed.
Technically they are but I doubt anyone pays them.
https://comptroller.texas.gov/taxes/pub ... 94-171.php
What should I do if the out-of-state seller does not collect Texas use tax?

If the seller did not collect Texas use tax, then you can report it directly to the Comptroller's office. If you don't have a sales tax permit, you can file an "occasional use tax" return, Form 01-156 (PDF). Reporting use tax that is due helps put out-of-state vendors on an equal footing with Texas vendors.
What if I buy something out-of-state? Is there still tax due?

A taxable item that is shipped from outside the state directly to a Texas customer is subject to Texas use tax at the location where the customer takes delivery. Use tax rates are the same as sales tax rates.

Some companies voluntarily collect the Texas use tax, while others must collect it because they have some form of physical representation in Texas. An out-of-state seller is not required to collect Texas tax if the seller only conducts business in Texas from out-of-state by mail, telephone, or via the Internet, but this seller can choose to apply for a permit and voluntarily collect Texas tax from its Texas customers. On the other hand, an out-of-state seller must get a Texas permit and collect Texas tax if the seller has Texas outlets, Texas salespersons, or otherwise comes into Texas to conduct business, such as soliciting sales, performing services, or making deliveries. The Comptroller's office closely monitors out-of-state sellers to make sure they properly report and remit the tax they collect.

rotor
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Re: Buying online

#6

Post by rotor »

I wonder what the dollar amount is that people voluntarily pay with purchases like this. Hint, when purchasing from Amazon if you buy it from Amazon they charge tax, if you buy from one of their affiliates (not located in Texas) they don't charge tax.
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couzin
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Re: Buying online

#7

Post by couzin »

Not now - but the States and Feds are hard at work trying to figure out ways to charge those taxes. Some States that have income taxes have a self reporting line that asks how much 'stuff' you bought online as part of your tax calculation. Approximately 15 billion is uncollected use taxes nationally, about 3 billion in Texas alone.
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