paying taxes to a ffl for item from internet

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  • OEH

    Active Member
    Nov 18, 2010
    353
    29B
    The Comptroller's office has decided that since you can't receive the gun directly from the internet seller your FFL has become a part of the transaction. As such he/she is responsible for collecting the sales tax. Call the Comptrollers office and ask.
     

    t84a

    USCG Master
    MDS Supporter
    Jan 15, 2013
    7,773
    West Ocean City, MD
    Sorry Click the link then the 4th post then #18

    This is what I get:
    e2cea7e083516231bdec67dd58989801_zpsb23d8ff0.jpg
     

    t84a

    USCG Master
    MDS Supporter
    Jan 15, 2013
    7,773
    West Ocean City, MD
    The Comptroller's office has decided that since you can't receive the gun directly from the internet seller your FFL has become a part of the transaction. As such he/she is responsible for collecting the sales tax. Call the Comptrollers office and ask.

    Well, did this start in the last couple of weeks? I've paid no sales tax to a FFL for an online purchase.
     

    swinokur

    In a State of Bliss
    Patriot Picket
    Apr 15, 2009
    55,506
    Westminster USA
    If you have a suspicion that the dealer is pocketing the tax you could follow up with the state. I was under the impression that it was the buyer's responsibility to pay the "use tax" on their yearly tax filing...not the dealer.

    Post the shop so others can make an informed decision on whether to transfer there.

    I believe this is the correct answer. I stand corrected.

    ETA pending a cite for the comptrollers opinion.
     

    swinokur

    In a State of Bliss
    Patriot Picket
    Apr 15, 2009
    55,506
    Westminster USA
    The Comptroller's office has decided that since you can't receive the gun directly from the internet seller your FFL has become a part of the transaction. As such he/she is responsible for collecting the sales tax. Call the Comptrollers office and ask.

    Cite?
     

    fred2207

    Banned
    BANNED!!!
    Mar 14, 2013
    3,179
    PG

    +1, The MD Comptrollers opinion does not establish MD tax law. If the “purchase” transaction is completed out of state, MD cannot legally collect sales tax, unless the practice is established by legislated and signed MD law, as with out of state vehicle purchase sales tax assessments.

    Fred
     

    Mooseman

    R.I.P.- Hooligan #4
    Jan 3, 2012
    18,048
    Western Maryland
    I have heard of this happening before. It is not right. The FFL doing the transfer is selling you nothing but a service. Service is not taxable. If you purchase out of state on the internet, YOU are responsible for paying the sales tax to the State of Maryland.
     

    fred2207

    Banned
    BANNED!!!
    Mar 14, 2013
    3,179
    PG
    I have heard of this happening before. It is not right. The FFL doing the transfer is selling you nothing but a service. Service is not taxable. If you purchase out of state on the internet, YOU are responsible for paying the sales tax to the State of Maryland.

    Bingo---that's the way it's supposed to work...

    Fred
     

    Mark75H

    MD Wear&Carry Instructor
    Industry Partner
    MDS Supporter
    Sep 25, 2011
    17,286
    Outside the Gates
    +1, The MD Comptrollers opinion does not establish MD tax law. If the “purchase” transaction is completed out of state, MD cannot legally collect sales tax, unless the practice is established by legislated and signed MD law, as with out of state vehicle purchase sales tax assessments.

    Fred
    MD's tax is not exclusively "sales" it is "sales AND use"
    Try buying a piece of heavy machinery out of state and using it in MD ... the Comptroller's Office WILL be there looking for their cut ... it is both "opinion" and LAW. Boaters know this by heart; everyone knows it doesn't work to buy a boat in DE or PA, register it there and use it in MD ... 190 days later, you will be getting the letter

    I have heard of this happening before. It is not right. The FFL doing the transfer is selling you nothing but a service. Service is not taxable. If you purchase out of state on the internet, YOU are responsible for paying the sales tax to the State of Maryland.

    You are correct, as of this year, tax is not collected on services. Wait until 2015 ... then it will be on everything except law & real estate ... and I'll be relocating.

    If the FFL charged tax on the service ... I'd be at the Comptroller's Office the next day and the Comptroller's Office would be at the FFL the following day, and I'd look like this: :D
     

    fred2207

    Banned
    BANNED!!!
    Mar 14, 2013
    3,179
    PG
    MD's tax is not exclusively "sales" it is "sales AND use"
    Try buying a piece of heavy machinery out of state and using it in MD ... the Comptroller's Office WILL be there looking for their cut ... it is both "opinion" and LAW. Boaters know this by heart; everyone knows it doesn't work to buy a boat in DE or PA, register it there and use it in MD ... 190 days later, you will be getting the letter

    It is up to the MD resident to pay the use tax, not the responsibility of the FFL to collect sales tax.

    You are correct though, when it comes to such things as boats, airplanes, and farm equipment. The registration must match the owners domicile address. However, if registered out of state, and if kept primarily in MD, must be re-registered and applicable sales taxes paid to MD, if not already paid in the original state of registry. I went through this goat rope when I first moved to MD. The only thing that saved me was that I was active duty military, but the day I retired from the USAF, (if I hadn't already sold both), I would of been required to register and pay any tax, based on the retail value, minus any tax paid to the state of previous registry.

    Fred
     
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