Does your FFL collect sales tax on transfers?

Does your FFL collect sales tax on transfers?

  • Yes

    Votes: 7 19.4%
  • No

    Votes: 29 80.6%

  • Total voters
    36

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Only one that I have used here in Raleigh collects sales tax on the $25 transfer fee.
 
I use a couple different FFLs. Never had them charge a sales tax.
 
The sales tax law changes in the last 2 years screwed a bunch of things up.

And you can't get anyone to actually tell you what you should be doing, so the only safe option is to collect the taxes, because if they come check and decide you were suppose to be collecting, but were not doing so. You get to cut a check for the taxes you didn't collect.
 
My FFL charges $25.00 no tax. That is for transfers, or something that I sell and needs to be mailed. He takes it to the post office. mails it, and gives me a tracking number.
 
The sales tax law changes in the last 2 years screwed a bunch of things up.

And you can't get anyone to actually tell you what you should be doing, so the only safe option is to collect the taxes, because if they come check and decide you were suppose to be collecting, but were not doing so. You get to cut a check for the taxes you didn't collect.
Don't be lazy - There's a LOT of info out there on the new tax laws and what applies/ doesn't apply. Collecting taxes and then not paying them to the State I would think opens you up to other liabilities so that's not necessarily the safest course.
https://www.dornc.com/practitioner/sales/directives/SD-16-4.pdf
 
Don't be lazy - There's a LOT of info out there on the new tax laws and what applies/ doesn't apply. Collecting taxes and then not paying them to the State I would think opens you up to other liabilities so that's not necessarily the safest course.
https://www.dornc.com/practitioner/sales/directives/SD-16-4.pdf

Wtf are u talking about.

Read every publication, talked to CPAs, tax people. At the end of the day all agreed it was the safest to collect on everything.
Businesses do not charge sales tax, just collect and remit to the state. Collect and don't remit, or don't collect when you should, and they will LOCK you up.
 
Read every publication, talked to CPAs, tax people. At the end of the day all agreed it was the safest to collect on everything.
What business are you in? These new laws are crystal clear for me. I'm just curious who they left in a grey area?
 
Im with @Catfish. We discussed the 2016 changes at work (large intl Corp) as it pertains to selling extended warranties and other services, and our legal, tax consultants, and internal leaders all agreed that the RMI changes were pretty clear. Based on that discussion, a transfer fee is not taxable.
 
The changed the definitions of retailer, contractor, etc

If you do both, run a retail store front, and are a real property contractor, good luck getting a clear answer.
This is item, service is taxed, but if a certain percentage of revenue is from this activity, then you don't collect on it. No one can tell you the percentage cut off. And if the decide your wrong, you now owe for all of it.

Hence the collect on all stance.
 
I've just gone through a major integration with a sales tax validation service called AvaTax (https://www.avalara.com/products/sales-and-use-tax/avatax-2/). These are the folks that can tell you that a product is taxed at 3% on the north side of a street and 7% if you cross the road to the south. Their test cases involve setting up a sale in Costa Mesa, CA and Washington, DC - the 2 most onerous sales tax regions in the country.

According to them, any type of Administrative fee from an NC seller to an NC buyer in a retail setting (store) is not taxable.
 
I've just gone through a major integration with a sales tax validation service called AvaTax (https://www.avalara.com/products/sales-and-use-tax/avatax-2/). These are the folks that can tell you that a product is taxed at 3% on the north side of a street and 7% if you cross the road to the south. Their test cases involve setting up a sale in Costa Mesa, CA and Washington, DC - the 2 most onerous sales tax regions in the country.

According to them, any type of Administrative fee from an NC seller to an NC buyer in a retail setting (store) is not taxable.

Does that change if the seller is outside NC (like a gunbroker auction)?
 
I voted no, store charges $15.00 for transfer, but now that I am thinking about it they probably pay sales tax on their end.
 
I've just gone through a major integration with a sales tax validation service called AvaTax (https://www.avalara.com/products/sales-and-use-tax/avatax-2/). These are the folks that can tell you that a product is taxed at 3% on the north side of a street and 7% if you cross the road to the south. Their test cases involve setting up a sale in Costa Mesa, CA and Washington, DC - the 2 most onerous sales tax regions in the country.

According to them, any type of Administrative fee from an NC seller to an NC buyer in a retail setting (store) is not taxable.

I had a political person tell me they used this(best I recall) and downtown main st Mooresville NC was the highest taxed place in NC. I find that hard to believe though.
 
When I lived in SC I almost used an FFL until they told me it would be a $25 transfer fee + tax on the sale price of the item. At the time SC didn’t require sales tax on online purchases and it was on the honor system for you to pay those taxes on your annual tax return. I don’t know if that’s changed since I left or not. This gun shop said they were “just keeping everyone honest” despite being one of the sleaziest gun shops I’ve ever dealt with. Needless to say I found a different FFL that didn’t take it upon themselves to protect the govt.
 
I wonder whether the sales taxes they collected were actually remitted to the state.
 
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To a NC revenue agent/officer the only thing worse than not collecting and remitting sales tax is...collecting it and not remitting it. Happens more than you know.
 
When I lived in SC I almost used an FFL until they told me it would be a $25 transfer fee + tax on the sale price of the item. At the time SC didn’t require sales tax on online purchases and it was on the honor system for you to pay those taxes on your annual tax return. I don’t know if that’s changed since I left or not. This gun shop said they were “just keeping everyone honest” despite being one of the sleaziest gun shops I’ve ever dealt with. Needless to say I found a different FFL that didn’t take it upon themselves to protect the govt.


Problem there is it that the FFL doing the transfer did not sell the firearm...they have no liability or authority to tax it.
 
Problem there is it that the FFL doing the transfer did not sell the firearm...they have no liability or authority to tax it.
There were a lot of problems with that ffl. I suspect they pocketed the “tax” they collected
 
Carolina Gunrunners in Raleigh charges sale tax on their $25 transfers.
That's a bummer- I just had a gun shipped there. Then again, better than the $40+ that TSA charges.

Anyone recommend a shop in the N. Raleigh area who isn't pocketing sales tax or overcharging to fill out a form?
 
I have no clue. But if I like my FFL I'm not going to let that deter me from doing business with them. What is it, a whole $2?
Yeah... but that would go firmly in the "things I don't like about my FFL" column, especially when I can name 3 in the Raleigh area that charge $15 for a transfer... no sales tax, or handling fee, or any other unnecessary fee. Just sayin'...
 
TSA $25 transfers for members + NC sales tax on the $25.
PDHSC $30.
 
In the Wilmington area I use Triple T Guns. Home based FFL and his fee is $15 no tax. Plus he usually keeps limited stock but it is usually pretty nice stuff and competitive with online prices. If anyone needs his info you can PM me. One of the best FFLs I’ve dealt with.
 
That's a bummer- I just had a gun shipped there. Then again, better than the $40+ that TSA charges.

Anyone recommend a shop in the N. Raleigh area who isn't pocketing sales tax or overcharging to fill out a form?

Patriot Shooting Sports in Youngsville, just outside Raleigh, north on us1. About 8 miles past Triangle Town Centre.

They just merged into one store with Force Recon surplus so they've got a lot of man toys in one shop now. It's in the shops on US1 across from Centurylink before you get to Sheetz.
 
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Picked up a lower today at Smokin' Barrels on 401 in Raleigh... $15, no tax, and good people.
Anything above $20... especially for a "member," is confiscatory. Then to add tax? That's an insult.
 
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Technically they do have to collect it since they added the sales tax on services.
Gone are the days when my axle upgrader could discount the parts price to save on sales tax.

Sent from my SM-G935V using Tapatalk
 
Yes he does, BUT it's figured in such a way that the total cost of transfer including tax is $20.

Props to James at Knightdale Pawn
 
Lawmans in Charlotte, back when they still served the general public, charged me sales tax on a transfer between me and a CSC member back in the day. No other FFL I've dealt with has though.
 
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