Tax on transfers?

**hacimsaalk** · August 16th, 2012, 09:53 PM

I am looking to possibly buy a pistol from Bud's or a private seller. I am wondering if there would be tax on the sale price of the pistol...ie I buy a gun for $300 from Bud's or a private seller...would I be charged $18 in state tax on the gun in addition to the transfer fee?

Thanks,

Micah

**DellRich89** · August 17th, 2012, 12:09 AM

Buds advertised price is a cash discounted price. If you pay with a debit/credit card, you will be charged 3% of the advertised price plus shipping insurance (optional but necessary) plus a transfer fee from the ffl you choose to ship it to. The only way you get the advertised price from buds is if you pay with a check, money order or through their e-check system that takes 3 to 5 days to clear. If you buy from a private seller, you only pay the transfer fee, no tax. Either way, you will not be charged and additional state tax. Hope this helps

**Bravo Whiskey** · August 17th, 2012, 12:29 AM

Every person living in PA is required to front 6% when they purchase something from anyone . It does not matter if you buy in-state or out of state.
Certain exemptions apply, but are few. As a business you will receceive ,sooner then later, a form which you will need to fill out regarding out of state purchases and they will match it up to your Tax return.
They are always years behind but they will question/look over your transactions with in the ten year window.
A person buying a few items tax free should skate, but a person/business doing multiple transactions and or declaring lowball prices for sales transactions will get called to produce valid paper work.

**West Chester** · August 17th, 2012, 12:29 AM

You owe a PA use tax for any items purchased out of state. I think it is line 25 on your PA-40 tax form.

**Xringshooter** · August 17th, 2012, 12:28 PM

Your FFL that does the transfer CANNOT charge you sales tax on anything bought from out of state. If you buy a gun from a FFL that he stocks, then you would pay the sales tax for your area.

The tax that is due the state when you buy a gun from out of state and have it delivered to your local FFL is called the PA USE TAX. It is the same percentage as the sales tax in your area (some areas have a local sales tax on top of the PA sales tax and you have to pay that to PA also, then the Dept of Revenue sends what is owed to the locality).

You can pay the Use Tax directly to the state either by filling out a form you get from the Dept of Revenue, or pay it when you pay your income taxes.

Again, no matter what the FFL says, they cannot collect the Use Tax from you, they are not authorized to do this. They are ONLY authorized to collect PA Sales Tax from you on purchases within the state.

If you buy from a private party, you do not owe any sales or use tax. The sales or use tax was collected when the very first buyer of the gun made their purchase.

**twency** · August 17th, 2012, 01:53 PM

Originally Posted by Xringshooter

Your FFL that does the transfer CANNOT charge you sales tax on anything bought from out of state. If you buy a gun from a FFL that he stocks, then you would pay the sales tax for your area.

The tax that is due the state when you buy a gun from out of state and have it delivered to your local FFL is called the PA USE TAX. It is the same percentage as the sales tax in your area (some areas have a local sales tax on top of the PA sales tax and you have to pay that to PA also, then the Dept of Revenue sends what is owed to the locality).

You can pay the Use Tax directly to the state either by filling out a form you get from the Dept of Revenue, or pay it when you pay your income taxes.

Again, no matter what the FFL says, they cannot collect the Use Tax from you, they are not authorized to do this. They are ONLY authorized to collect PA Sales Tax from you on purchases within the state.

If you buy from a private party, you do not owe any sales or use tax. The sales or use tax was collected when the very first buyer of the gun made their purchase.

Can you cite a source for the claim that PA sales tax only applies to the first-ever sale of an item? I don't think it's correct. I know businesses are allowed to purchase wholesale goods tax-free when they are destined for retail sale, but if a business is selling a used item (let's say, a used car) I believe they are required to collect sales tax on that transaction even though the first purchaser paid sales tax on it in the past.

(That said, I seem to recall an exemption in the sales tax code for "occasional" sales by non-businesses, or something to that effect, so a private-party one-time transaction might be exempt anyway. I can't find a cite for that right now though.)