Sales tax discrepancy in North Carolina

[Biggabe]

Was thinking about sending a gun to a relative in NC(I'm in KY) so I called a couple of gunshops to find out about their procedures and fees. Asking if they have to collect sales tax from one private individual(seller) to another private individual(buyer). One said it was a state law and that they would have to collect state sales tax, the other said no sales tax was needed. Was wondering if anyone knows who is right. The gun would ship FFL to FFL. Thanks. Gabe

 

[dkhunt14]

More and more States have adopted that policy. They don't want to lose out on that revenue.

Sad but true. I think all the politicians look and say now how much money can we make on that. Look now you have to get a permit or license to fly a drone. It's supposed to be free if you apply by a certain time. Can you imagine how much money they will make when it isn't free. I think the new gun proposals being made is about how much money can we make from it.

I would think if it was a gift they couldn't tax it. Matt

 

[clowdis]

It might be a law in NC but individual sales are almost never taxed. Gun shops that I know of will charge about $25 to do the paperwork but that isn't a sales tax. I believe that the proper, lawful thing to do is for the seller to declare the sale as his income.

 

[Biggabe]

So can anyone answer my question? Sales tax or no.

 

[XTR]

This is a case of "don't ask the question if you can't live with the answer". If the business says you have to pay (and you asked them specifically for an answer ) then they won't do the deal w/o the $$ and you have to pay, whether or not it's right.

It is interstate trade, the states can't tax interstate trade. You shouldn't have to pay; however, they should report the purchase to the state and pay the applicable sales tax. We all do that on everything we buy on the internet, right?

If there is any state tax on the fee charged for the 4473 and the background that will have to be paid.

 

[clowdis]

So can anyone answer my question? Sales tax or no.

The dealer is not responsible for collecting sales tax on anything other than the merchandise that he sells. So, no, you don't need to pay sales tax on an interstate sale. There are a few companies like Amazon that the state has asked them to charge sales tax on sales of product to NC citizens, but person to person sales are free of tax. Otherwise you'd need to get a Federal tax number and apply to the state for your license and fill out tax returns each month as a business. Sales tax is the burden of the seller. OK?

 

[clowdis]

Check with your State. If the State has mandated it by law, the tax has to be collected by the the FFL holder and paid. I had a gun built by WTC, I supplied the action, stock and barrel, the work was completed and shipped to the FFL holder. He called and said the gun came in. When I arrived to complete the paperwork and pay him, he showed me the document from the State mandating the collection of the State sales tax. It was either pay the tax, or walk away without the gun.

I found my receipt, and the State tax collected falls under the "Use Tax" provision.

Tell me how your dealer can collect sales tax on a sale done in another state? Ain't legal!

 

[dabeechman]

I went through this in CA. Some FFL's require sales tax on PPT, and some do not. I just do my business with the folks that don't charge tax. I did some research on it some months back, and the documentation clearly states that they are NOT required to charge sales tax on PPT.

 

[Biggabe]

Thanks, question answered.

 

[dabeechman]

California Board of Equalization, 495.0843 It's quite clear. If you own a business, sales tax is collected.

That is for a retailer to retailer transfer. Not a PPT.

 

[JamesnTN]

Make out a cash receipt of 1.00

 

[YEW PLUCKER]

I was in the Gun Business in NC twenty years ago. If sales tax is collected, and who would know any different if it wasn't, it would be on the transfer fee only. Once when I was in Oklahoma, A pawn broker who handled a transfer for me on an STI pistol tried to tell me he had to charge sales tax on the retail value of the item, even though the transaction amount was $30.00. I didn't let him get away with it.