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Question, my local FFL wants to collect CO sales tax plus $30 fee for transfer of bid item off GunBroker, is this required or are they just collecting a fee?
Since they are not selling the item and it came from out of State I do not see why they legally would need to do so.
Anyone run into this?
he can charge a transfer fee. however he is not selling the item only doing the labor to transfer it.
I think you're getting ripped off. What FFL are you working with? Something doesn't pass the smell test here at all.
Last few FFL transfers I had done were a flat 15$, for both 500$ and 2000$ firearms.
Tell them you already paid all the tax.
Depends on state law (and in some cases, local law). In Colorado, a transfer is a "service sale" and not subject to state or county sales tax. There might possibly be a city or town which taxes service sales, but none that I'm aware of.
Tell your FFL to look at his sales tax returns, and there's a deduction line on the back for "non-taxable service sales" where he records all sales of services, and deducts them from his gross receipts subject to sales tax.
Perhaps I misread the FFL's on line statement, I will check with them today before I give them a bad name.
Does anyone have a recommendation for a Colorado Springs FFL?
Perhaps a quick phone call to the FFL to clarify his statement would resolve the whole issue.
I think it would depend on what the dealer has to do.
a plain transfer from one ffl to another you should not be charged a tax. for example.you have uncle joes rifle he wants to send you from alaska so he needs to send it threw a ffl and you have to have a ffl recieve it. you are just picking it up and how the heck would or could he decide what tax to charge you? he couldn't could he.
now it may get more sticky if you have the dealer play any part in the payment of the firearm or if he is the one sending the ffl to the dealer as he now becomes part of the deal and may be required to pay taxes on it.
when I do transfers on the ffl I will give you a signed file copy to send along with your payment to the person you are buying it from.
If you are doing all the leg work and paperwork and payments and I am only recieving the firearm and then doing the background and then transfer then its a simple $25 fee.
even if for example you do a COD from UPS you can get the total and the money order yourself and I can give it to ups on delivery and then its still only a $25 fee.
Now as far as the fee for sevices most in town charge $30 and up with a few charging $25. there may be a few charging less but with not to many and with only a few shops left intown willing to do it I could not think who only charges $15. they either are not very busy or have no overhead as time is money and with paying for lights and a real store front these days is not getting any cheaper. Have you seen the insurance for a ffl with a store front these days.
If a pawn shop or the like depending on THIER policy charges tax on everything (BUT if you give them copy of you sales tax)license they may make you pay depending on THIER policy.
At a gun show i may only charge $10 as it is in line with what everyone else is charging. But like everyone else nobody charges for thier own sales at a show or in a shop.
more than likely a few dealers are going to raise their transfer fees after the first of the year but it is not my place to tell you who they are as its thier job to do that not mine. also if the deal of $10 per back ground gets around to really happening expect those fees to really climb.
bottom line ask all questions before you do any deal and if you need to fork over the sales tax you now know who not to go to next time.
If you bought it online, there is no reason to tell him how much you paid for it.
HOW would he know how much sales tax to charge you?
Hey, I bought it for $5.
Sounds like you are getting ripped.
My FFL charged sales tax on a portion of my transfer. The transfer was $20. $10 went to the state, $10 went to the FFL, so I was charged sales tax on $10.
In Colorado, none goes "to the state"... at least not yet. Ritter's proposed changing that, but for now, it costs the FFL nothing.Quote:
Originally Posted by SSChameleon