New tax on out of state transfers?

[A1Uni]

It is real; it is called Maryland Use Tax, and FFLs, for the most part, have gambled that the Comptroller won't come after them to collect it, but it could happen.


http://taxes.marylandtaxes.com/Individual_Taxes/Individual_Tax_Types/Sales_and_Use_Tax/

Sooner or later the state will catch on and it will be universal, so enjoy not paying it now, because it won't last forever. (EDIT My mistake, t84a is right in that the FFL does not collect it, but rather the consumer is required to report and pay it.)

See third paragraph down.

http://taxes.marylandtaxes.com/Indi...les_and_Use_Tax/Tax_Information/default.shtml

But I am sure none of the items purchased will ever be used in MD and thus are exempt from this tax.

 

[t84a]

FFLs cannot collect sales or use tax on items purchased out of state. No ifs, ands, or buts.

 

[protegeV]

It is real; it is called Maryland Use Tax, and FFLs, for the most part, have gambled that the Comptroller won't come after them to collect it, but it could happen.


http://taxes.marylandtaxes.com/Individual_Taxes/Individual_Tax_Types/Sales_and_Use_Tax/

Sooner or later the state will catch on and it will be universal, so enjoy not paying it now, because it won't last forever. Here is the REALLY bad news; FFLs should be charging you the tax on the value of your purchase, NOT the service provided.

 

[Kman]

I guess I'll be getting better acquainted with my DE FFL's for long guns.

 

[tdt91]

http://taxes.marylandtaxes.com/Indi..._and_Use_Tax/Filing_Information/default.shtml

Yes, I am very familiar with this as I always send in the tax for stuff I buy OOS.

 

[A1Uni]

See the edit above Big Boy. I caught and admitted my misstatement.

 

[protegeV]

See the edit above Big Boy. I caught and admitted my misstatement.

I get it, that's why the "burden" would HAVE to be on the purchaser. They are the only one who can determine where the use will occur. Not the transferer

 

[Mark75H]

Collecting tax based on the SERVICE that regular business provides is NOT yet in the MD tax code.

If the FFL was trying to collect tax based on the value of the item being transferred, that could/would be in the range of what A1Uniform mentions - but its clear that collecting tax on the transfer as a service is currently illegal in MD.

 

[A1Uni]

I get it, that's why the "burden" would HAVE to be on the purchaser. They are the only one who can determine where the use will occur. Not the transferer

Agreed.

For the record, we have never taxed a transfer, which is of course exempted as it is only a service provided.

 

[TyFromMD]

The use tax isn't a new law, but retailers don't collect it. Consumers pay it directly to the state.

 

[SRD]

Collecting tax based on the SERVICE that regular business provides is NOT yet in the MD tax code

The state has been trying to get this through for years,tax on service/labor.

I buy a lot from A&D but sometimes they will talk out their arse,a couple years ago Gil (who I had no problems with) told me it was "illegal to build/assemble a rifle without being a FFL due to the excise tax".

 

[Mark75H]

Changing the code to collect tax on services will probably come about during the term of the next Democratic governor

 

[SRD]

Changing the code to collect tax on services will probably come about during the term of the next Democratic governor

Yep,surprised it didn't go through in the past 8 years,but I guess rain was enough to get by.

 

[Proline Fisher]

Changing the code to collect tax on services will probably come about during the term of the next Democratic governor

Certain services are already taxed. For instance commercial cleaning is subject to sales tax but residential isn't. There are a lot of goofy sales tax laws.

 

[TyFromMD]

The dealer should not be collecting sales tax on items purchased out of state.

From: http://taxes.marylandtaxes.com/Individual_Taxes/Individual_Tax_Types/Sales_and_Use_Tax/Tax_Information/

When you purchase goods from businesses located outside of Maryland, they are not required to collect Maryland's sales tax unless they have a physical location, or deliver services, in Maryland. Also, you are not required to pay the sales tax in the state where the business is located. However, you are required to pay the 6 percent use tax or the 9 percent alcoholic beverage tax directly to the Comptroller of Maryland by filing the consumer use tax return.

 

[SRD]

Certain services are already taxed. For instance commercial cleaning is subject to sales tax but residential isn't. There are a lot of goofy sales tax laws.

Amusement tax is another BS fee.

 

[protegeV]

Amusement tax is another BS fee.

omg, tell me about it. Is that a county to county or a state thing? I raised holy hell about it at my kids bday party in harford county. Can't remember being charged something like that anywhere near home...

 

[SRD]

State.

 

[Proline Fisher]

omg, tell me about it. Is that a county to county or a state thing? I raised holy hell about it at my kids bday party in harford county. Can't remember being charged something like that anywhere near home...

The State of Maryland (Comptrollers Office) collects the tax but it is a local tax and they have varying rates. It was a PITA to audit, needless to say I stayed away from those types of audits.

 

[Hit and Run]

Interesting thread. The few guns I have bought online, sales tax was collected by FFL too. Most of my purchases here in Maryland have been from local gun shops. Will need to ask next time.