Question for FFL's..........

FFL's post your location, contact information and transfer fees

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RKirby
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Question for FFL's..........

#1

Post by RKirby » Wed Jan 16, 2008 9:25 pm

When transferring a weapon purchased out of state, does Texas sales tax apply?

I see that some FFL's list a transfer fee of $xx.xx "plus tax". Is this sales tax on the transfer fee or on the sale price of the weapon?
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seamusTX
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Re: Question for FFL's..........

#2

Post by seamusTX » Wed Jan 16, 2008 9:36 pm

The one time that I received a weapon from out of state, the sales tax was on the receiving dealer's transfer fee, not the purchase price (which the receiving dealer didn't know).

- Jim


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RKirby
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Re: Question for FFL's..........

#3

Post by RKirby » Wed Jan 16, 2008 11:36 pm

That's what I was thinking also, but I wasn't sure if there was an exception to the norm when firearm sales were involved.

Thanks Jim
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charlieb
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Re: Question for FFL's..........

#4

Post by charlieb » Fri Jul 16, 2010 9:17 am

Why would there be a sales tax on a service such as transferring a firearm? I do not pay sales tax when someone paints my house or repairs my car.

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seamusTX
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Re: Question for FFL's..........

#5

Post by seamusTX » Fri Jul 16, 2010 9:26 am

The services that are taxable under Texas law are all over the map:
http://www.window.state.tx.us/taxinfo/t ... 6_259.html" onclick="window.open(this.href);return false;

I actually don't see how FFL transfers fit into that schedule, but I never bothered arguing with the FFL about it.

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Re: Question for FFL's..........

#6

Post by allencp78 » Sun Jul 18, 2010 9:11 pm

Transfer fees are not taxable in Texas.

http://www.window.state.tx.us/taxinfo/t ... .html#art8" onclick="window.open(this.href);return false;

I looked into this as soon as I had my FFL so I knew that I was treating my customers right.

Allen

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seamusTX
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Re: Question for FFL's..........

#7

Post by seamusTX » Sun Jul 18, 2010 9:17 pm

Thanks for the reference. I did not find that.

This is a good news-bad news story:
For example, assume an individual paid $1,500 to an out-of-state seller for a gun. The out-of-state seller shipped the gun to a Texas gun dealer. The customer picked up the gun at the Texas dealer's place of business and was charged a $25 transfer fee by the dealer. The $25 transfer fee is not considered a sale for Texas sales and use tax purposes and therefore is not subject to sales tax.

The purchase of the gun itself is, however, subject to Texas use tax. If the out-of-state seller does not collect the applicable Texas tax, then the purchaser is responsible for accruing and remitting the tax directly to the Comptroller's office. The Texas gun dealer handling the transfer is not responsible for collecting the use tax since the Texas dealer is not the seller of the gun. Purchasers may use a Texas Occasional Use Tax Return (Form 01-156) to report and remit the Texas use tax on the purchase of a firearm from an out-of-state gun dealer.
- Jim


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Re: Question for FFL's..........

#8

Post by mrvmax » Mon Jul 19, 2010 4:40 am

allencp78 wrote:Transfer fees are not taxable in Texas.

http://www.window.state.tx.us/taxinfo/t ... .html#art8" onclick="window.open(this.href);return false;

I looked into this as soon as I had my FFL so I knew that I was treating my customers right.

Allen
From the example, only the out of state sales/transfers are non taxable.

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Re: Question for FFL's..........

#9

Post by SwimFan85 » Mon Jul 19, 2010 6:15 pm

mrvmax wrote:
allencp78 wrote:http://www.window.state.tx.us/taxinfo/t ... .html#art8

I looked into this as soon as I had my FFL so I knew that I was treating my customers right.

Allen
From the example, only the out of state sales/transfers are non taxable.
Yes. The buyer is responsible for paying the tax on out of state purchases, including firearms and ammunition. http://www.window.state.tx.us/taxinfo/t ... 01-156.pdf

Some people say Texas residents who carry a gun should get a Texas CHL to support the state. It's also important to support the state by not cheating on taxes.
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Re: Question for FFL's..........

#10

Post by Salty1 » Mon Jul 19, 2010 7:04 pm

We asked about the sales tax on the transfers and the state told us that we are required to collect and report the sales tax.
Salty1


dogtowntom
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Re: Question for FFL's..........

#11

Post by dogtowntom » Sun Aug 08, 2010 2:46 pm

Salty1 wrote:We asked about the sales tax on the transfers and the state told us that we are required to collect and report the sales tax.
Whoever told you that is flat wrong.
Direct from the State Comptrollers Office :
http://www.window.state.tx.us/taxinfo/t ... .html#art8
Firearms Sold by Out-of-State Dealers - Transfer Fees Charged by Texas Dealers
When a gun is purchased from out of state by an individual in Texas, federal law provides that the out-of-state seller must ship the gun to a Texas dealer for transfer to the individual.

Frequently, the Texas dealer will charge the purchaser a transfer fee to cover the costs of paperwork and handling. Because the gun was not purchased from the Texas dealer, the transfer fee does not represent a sale. Therefore, the transfer fee is not taxable.

For example, assume an individual paid $1,500 to an out-of-state seller for a gun. The out-of-state seller shipped the gun to a Texas gun dealer. The customer picked up the gun at the Texas dealer's place of business and was charged a $25 transfer fee by the dealer. The $25 transfer fee is not considered a sale for Texas sales and use tax purposes and therefore is not subject to sales tax.

The purchase of the gun itself is, however, subject to Texas use tax. If the out-of-state seller does not collect the applicable Texas tax, then the purchaser is responsible for accruing and remitting the tax directly to the Comptroller's office. The Texas gun dealer handling the transfer is not responsible for collecting the use tax since the Texas dealer is not the seller of the gun. Purchasers may use a Texas Occasional Use Tax Return (Form 01-156) to report and remit the Texas use tax on the purchase of a firearm from an out-of-state gun dealer.
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Re: Question for FFL's..........

#12

Post by 08thunders » Sun Aug 08, 2010 3:20 pm

dogtowntom wrote:The purchase of the gun itself is, however, subject to Texas use tax. If the out-of-state seller does not collect the applicable Texas tax, then the purchaser is responsible for accruing and remitting the tax directly to the Comptroller's office. The Texas gun dealer handling the transfer is not responsible for collecting the use tax since the Texas dealer is not the seller of the gun. Purchasers may use a Texas Occasional Use Tax Return (Form 01-156) to report and remit the Texas use tax on the purchase of a firearm from an out-of-state gun dealer.
Thanks for the warning.


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Re: Question for FFL's..........

#13

Post by PBratton » Sun Aug 08, 2010 10:20 pm

Salty1 wrote:We asked about the sales tax on the transfers and the state told us that we are required to collect and report the sales tax.
Yeah, the safe answer from the state will always be to collect the tax...

It is my understanding and practice to not collect tax on transfers.
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