Pennsylvania Firearm Owners Association
Results 1 to 9 of 9
  1. #1
    Join Date
    Apr 2012
    Location
    Townville, Pennsylvania
    (Crawford County)
    Posts
    215
    Rep Power
    81452

    Default Tax on transfers?

    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
    Male RN

  2. #2
    Join Date
    Feb 2012
    Location
    Conshohocken, Pennsylvania
    (Montgomery County)
    Age
    34
    Posts
    102
    Rep Power
    262690

    Default Re: Tax on transfers?

    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
    Last edited by DellRich89; August 17th, 2012 at 12:11 AM.

  3. #3
    Join Date
    Apr 2009
    Location
    Outside the wire, Pennsylvania
    Posts
    602
    Rep Power
    466667

    Default Re: Tax on transfers?

    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.

  4. #4
    Join Date
    Jan 2010
    Location
    West Chester, Pennsylvania
    (Chester County)
    Posts
    1,428
    Rep Power
    10176462

    Default Re: Tax on transfers?

    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.
    Hoplophobia is funny

  5. #5
    Join Date
    Jan 2007
    Location
    State College, Pennsylvania
    (Centre County)
    Age
    71
    Posts
    5,607
    Rep Power
    21474859

    Default Re: Tax on transfers?

    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.
    Ron USAF Ret E-8 FFL01/SOT3 NRA Benefactor Member

  6. #6
    Join Date
    Oct 2008
    Location
    Harrisburg area, Pennsylvania
    (Dauphin County)
    Posts
    4,683
    Rep Power
    21474856

    Default Re: Tax on transfers?

    Quote Originally Posted by Xringshooter View Post
    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.)
    Last edited by twency; August 17th, 2012 at 01:57 PM.
    I am not a lawyer. Nothing I say or write is legal advice.

  7. #7
    Join Date
    Mar 2010
    Location
    Pittsburgh (Allison Park), Pennsylvania
    (Allegheny County)
    Posts
    3,493
    Rep Power
    16180493

    Default Re: Tax on transfers?

    As other's have said the local FFL does not collect tax. If they do, they are ripping you off.

    As to tax on internet orders of anything including firearms. The company only has to charge tax if they operate their business in the same state you are receiving the item. They will then add on the tax just as if you went to a local retailer.

    If they ship out of state they assume that the buyer will pay the appropriate use tax to the state.

    The amount of individual's that do this I am guessing is somewhere approaching zero.

  8. #8
    Join Date
    Oct 2009
    Location
    Hellertown, Pennsylvania
    (Northampton County)
    Posts
    396
    Rep Power
    8324301

    Default Re: Tax on transfers?

    Quote Originally Posted by twency View Post
    (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.)
    § 32.4. Isolated sales.
    (a) Isolated sales. Subject to subsection (b) the following transactions are considered to be isolated sales:

    (1) Infrequent sales of a nonrecurring nature made by a person not engaged in the business of selling tangible personal property, such as the following:

    (i) The sale of a used vacuum cleaner by a housewife.

    (ii) Isolated sales by executors, administrators, trustees and other fiduciaries in the liquidation of an estate.

    (iii) Sales or execution sales under a court order or by a court officer.

    (2) Infrequent sales of a nonrecurring nature of tangible personal property acquired for use or consumption by the seller, and not sold in the regular course of the business of the person, such as:


    (i) The sale of a typewriter by an insurance company which does not regularly dispose of such equipment.

    (ii) The sale of used machinery, fixtures, equipment and similar items by a person engaged in a business or occupation such as manufacturing or operating a retail store, when the person does not sell the items in the regular course of its business.

    (iii) The sale of an entire business by the owner thereof except that the value of a motor vehicle, trailer, semitrailer, motor boat or
    similar property constituting part of the sale may not be exempt. The transfer of inventory or stock in trade constituting part of the sale may not be exempt as an isolated sale but may be exempt as a sale for resale. Reference should be made to § 32.3 (relating to sales for resale).

  9. #9
    Join Date
    Jan 2007
    Location
    State College, Pennsylvania
    (Centre County)
    Age
    71
    Posts
    5,607
    Rep Power
    21474859

    Default Re: Tax on transfers?

    Quote Originally Posted by twency View Post
    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.)
    I can't give you a cite I just go with what my CPA says, he knows the tax laws, that is why I use him.

    You answered your own question. When a BUSINESS sells something, new or used they must charge sales tax, whether it has be taxed before or not. When an individual sells something privately, they aren't required to collect sales tax. If they sell a vehicle, the state collects the sales tax when the new owner registers it. Ever see anyone collecting sales tax at a garage/yard sale? Now, if someone has a continual, year round, yard sale, the Dept of Revenue could rule that they are running a business and in that case they would have to collect/remit sales tax. And vehicle sales in PA are a whole different ball game.

    From the Dept of Revenue:
    The sales and use tax is imposed on the RETAIL sale, consumption, rental or use of tangible personal property in Pennsylvania.


    Selling a gun in a private transaction is not considered a retail sale.

    I have never heard of anyone being prosecuted for selling personal property and not collecting sales tax.

    However, I could very well be incorrect. I will ask this question to my CPA the next time I see him and see if he can give me a cite.
    Ron USAF Ret E-8 FFL01/SOT3 NRA Benefactor Member

Similar Threads

  1. FTF Transfers....
    By lightsdarkness in forum Pistols
    Replies: 10
    Last Post: July 7th, 2010, 10:40 AM
  2. Transfers
    By mchlwlcx22 in forum General
    Replies: 4
    Last Post: October 12th, 2009, 07:02 PM
  3. Transfers
    By RYB44 in forum General
    Replies: 2
    Last Post: March 10th, 2009, 12:34 PM
  4. Gun transfers
    By pgp8667 in forum General
    Replies: 4
    Last Post: November 25th, 2008, 11:13 PM
  5. FFL Transfers
    By kevindsingleton in forum General
    Replies: 1
    Last Post: September 2nd, 2008, 04:00 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •