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Firearms Discussion of all firearm weapons, including Concealed Carry Weapons, Muzzleoaders, Rifles, Shotguns, Reloading, Target Shooting, Black power tech. No sales please.

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  #1  
Old 01-25-2010, 12:41 PM
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Default Pay MI sales tax for FFL transfer?

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I've purchased a handgun online from an individual in another state and am looking to have someone with an FFL transfer the gun to me. I've seen some places that charge sales tax on the firearm when they transfer it in addition to their "transfer fee" of about $20-$40.

Is this accurate? Should they be charging me Michigan sales tax of 6%? If so, why? I'm not purchasing the gun in Michigan and I'm not purchasing it from the person handling the transfer.

Thanks!
Chris
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Old 01-25-2010, 12:56 PM
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If the FFL holder doing the transfer is a store or dealer, they are going to collect Michigan sales tax. Legally you are supposed to be paying Michigan sales tax on mail order purchases made out of State if the tax is not collected at the point of sale, firearms are no different. I have run into a few FFL holders that will do a transfer and not collect sales tax but they are few and far between.
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Old 01-25-2010, 01:13 PM
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Quote:
Originally Posted by Munsterlndr View Post
If the FFL holder doing the transfer is a store or dealer, they are going to collect Michigan sales tax. Legally you are supposed to be paying Michigan sales tax on mail order purchases made out of State if the tax is not collected at the point of sale, firearms are no different. I have run into a few FFL holders that will do a transfer and not collect sales tax but they are few and far between.
This may be true, but it's not the FFL holders responsibility to be collecting your tax. I had one dealer tell me this and I told him I wasn't paying it.
I'm now using one that has never even tried to collect sales tax. How does he know if you did or didn't pay tax, or how much you paid for the gun?
All you're doing is paying him to do the transfer. Period.
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Old 01-25-2010, 07:09 PM
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I have never been asked to pay tax on an FFL into MI...don't know if I've ever heard of it. I know some sellers (on GunBroker, etc.) will state that sales to someone in their home state require they charge sales tax, but I've never seen that for out-of-state sales.

Each state is likely different too...
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Old 01-25-2010, 08:03 PM
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If the Dealer or FFL from whom your purchasing has a brick and morter store in Michigan (i.e. Cabelas) then yes, they must collect sales tax. If not, they are NOT required to and you are supposed to report it on your MI1040 tax form.
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Old 01-25-2010, 08:38 PM
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I have never had to pay tax either! Find another source for your FFL transfer.
Check out GunBroker.com and you can do a zip code search.
I've never paid more than $20 max!
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Old 01-25-2010, 10:17 PM
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$20 bucks and 10 minutes (this includes some chatting), and I'm on the road. I was hesitant the first time, but it's easier than buying from a shop, as long as you're comfortable with who you're buying from.
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Old 01-26-2010, 07:49 AM
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Quote:
Originally Posted by TNL View Post
If the Dealer or FFL from whom your purchasing has a brick and morter store in Michigan (i.e. Cabelas) then yes, they must collect sales tax. If not, they are NOT required to and you are supposed to report it on your MI1040 tax form.
This is correct. However your paying the tax to the dealer you bought the gun from, not the FFL doing the transfer.
If I'm in G.R. and buy a gun from Cabela's in Wisconsin. I pay them the sales tax, on the purchase price. They ship the gun to my FFL in G.R. and I pay him the $20.00 for doing the transfer. The FFL doing the transfer, has nothing to do with collecting sales tax.
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Old 01-26-2010, 01:35 PM
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Learned my lesson when I went to South carolina to by furniture and the place we bought if from said if we spend $10,000.00 shipping was free since it would wash out the 6% sales tax we would have payed in Michigan and once you broke the $10,000.00 mark shipping was a flat rate of 6%.
About 15 months later we received a bill from the State of Michigan for sale, and use tax. Tax must be paid at least once on the item and it must be paid in Michigan if it will be used in Michigan and the tax was not collected elsewhere.
Guys that are not charging are not transfering on the up and up which is cool until they transfer to a nut job and get caught up in an investigation.
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Old 02-05-2010, 07:26 AM
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If the FFL dealer is only doing the transfer, why is it their duty to collect on the taxes?

Is it the responsibility of the seller to report the actual price to the recieving dealer?

I am newer to this state (coming from Illinois, which I thought thier laws were crazy enough) but to charge, as a few do, $50 + tax! Well so much for getting a deal.

1911forty5
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  #11  
Old 02-05-2010, 09:44 AM
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Quote:
Originally Posted by Asphalt Dave View Post
This is correct. However your paying the tax to the dealer you bought the gun from, not the FFL doing the transfer.
If I'm in G.R. and buy a gun from Cabela's in Wisconsin. I pay them the sales tax, on the purchase price. They ship the gun to my FFL in G.R. and I pay him the $20.00 for doing the transfer. The FFL doing the transfer, has nothing to do with collecting sales tax.
Would you please send me a PM letting me know who you use for an FFL in GR??

THANKS!

Mark
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  #12  
Old 02-05-2010, 12:49 PM
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FFL's do not have to collect sales tax since they aren't selling you the gun. They are providing a service- the transfer. It's just like when you pay a mechanic, there isn't any tax on labor. Most of the time the tranferring FFL doesn't even know how much the gun cost.
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