FFL transfer fee gripe

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  • 308Scout

    Ultimate Member
    MDS Supporter
    Mar 27, 2020
    6,545
    Washington County
    On my last handgun transfer earlier this year, the FFL's transfer fee was $25 (it has been for a number of years) plus the $10 MSP fee. This is in Washington County mind you, so not much savings to be had if driving from AACo and points further east.
     

    Biggfoot44

    Ultimate Member
    Aug 2, 2009
    32,884
    And Scout brings up a relevant point .

    With minimum two visits , the proximity and travel expenses are a factor to not be ignored . Driving. 100 miles each way . Twice . Isn't objectively worth saving $10 in Fees .
     

    Slackdaddy

    My pronouns: Iva/Bigun
    Jan 1, 2019
    5,850
    And don't forget,, after ALL the overhead of running a FFL storefront, once that dealer "nets" $10 on that $35 transfer,, he/she gets to mail in 52.5% to the state/feds. (30% fed tax, 7.5% state/local, 15% self employment),, so he ends up with ~$ 4.75 in their pocket.

    I honestly don't know why transfer fees are not $80-100
     

    lazarus

    Ultimate Member
    Jun 23, 2015
    13,678
    And don't forget,, after ALL the overhead of running a FFL storefront, once that dealer "nets" $10 on that $35 transfer,, he/she gets to mail in 52.5% to the state/feds. (30% fed tax, 7.5% state/local, 15% self employment),, so he ends up with ~$ 4.75 in their pocket.

    I honestly don't know why transfer fees are not $80-100

    I mean, yes that stinks. But the taxes aren’t that much. Or if they are, the SE tax has already rolled off. 24% tax bracket up to ~$163k. 32% would be for single and $163-207k. And of course you’d need to divide your tax burden over all your income. Or else you are figuring the income early in the year is almost untaxed and the income later in the year has all the tax burden.

    Also state taxes aren’t that high, unless you are figuring local in there too (which you would need to).

    FICA stops at $142k. So if your business was fairly successful and you were making over that in profit, no 15% tax. Just the 2.9% Medicare.

    And since 2017, you’ve also got a 20% write off on self employed income off your federal taxes, reducing the effective bracket to 18% or 24% if pretty successful (20% reduction of the 24 or 32% tax brackets).

    And lastly, your SE taxes would be a write-off of your federal income taxes.

    I realize I am being a pendant on this one, but if your business wasn’t super successful your real tax burden overall is probably in the 36-40% range across your entire income (and would be a lot less if you were only clearing like 40-50k in profits), if your business was pretty darned successful it would likely be more like 40-44%.
     

    dblas

    Past President, MSI
    MDS Supporter
    Apr 6, 2011
    13,087
    For a handgun they are not only doing a 4473, but also a MD 77R. That's a second form that comes with more liabilities and record keeping. Now they also have to store and be liable for that firearm for 7 or more days while you wait for approval. On top of that they have to navigate the many grey areas of the MSP handgun roster.

    To give an example, every time a manufacturer introduces a new sub-model of an existing handgun, dealers are playing roulette whether or not the MSP will want it listed separately on the roster and if it's blanket covered by the broader model being listed. For instance Sig just came out with the Legion P320. So should that be good to go under the approved "P320 9mm" on the roster OR since it has a different sku the stock P320 that was approved by the board does it need to be added separately? The answer to that seems to vary from gun to gun with MSP.

    The handgun roster board addressed this about 2 months ago, no longer ned to submit a firearm if it is basically the same. Model/sku numbers should b going away.
     

    Doctor_M

    Certified Mad Scientist
    MDS Supporter
    Add to the equation that the MGA has now forced EVERY transfer in MD to go through an FFL... in addition to adding 50-100 dollars to every long-gun transfer in the state with very few limited exceptions between close relatives (meaning that when transferring something like a cheap break action 12 ga, the cost of that gun may now have effectively doubled), they have also created a defacto gun database for every gun transferred from 2021 on. Well played, Annapolis. A pox on your house.
     

    tigmaned

    Active Member
    Feb 25, 2007
    522
    Crofton
    for any handgun transfer person to person, that can still be done at any MD State Police Barracks.. only charge is $10.00... buyer goes online fills out 77R.. buyer and seller meet at Barracks...seller keeps gun for the 7 day wait..when final e-mail from state comes meet up again finish sale.
     

    dblas

    Past President, MSI
    MDS Supporter
    Apr 6, 2011
    13,087
    Will the MSP do a long gun transfer? I thought they wouldn't but maybe I'm wrong about that.

    No, MSP does not have the ability to do a NICS check on long guns.
     
    Last edited:
    Jun 17, 2014
    64
    The brick and mortar overhead in Maryland is (almost always) higher than in Texas. Maryland taxes, regulations, licensing, rent, etc. are much higher than Texas. Yes, there are exceptions--- rural western MD has a lower cost of business than Houston or Dallas. For all intents and purposes, a MD FFL has a ton of more overhead and regulations than a TX FFL.
    Yes, we cost more than a TX FFL, but I feel comfortable saying that a solid 80% of TX FFL's would close shop if they had to deal with the crap MD regulated firearms dealers have to deal with.
    Elections have consequences.
    .
    We charge $35 for long gun transfers and $50 for MSP regulated firearms purchases.
     

    python

    Active Member
    Apr 15, 2010
    600
    I buy older, collectible and used guns that are rarely, if ever, seen or available at local dealers. Transfer fees are a fact of life for me, and a reliable FFL is of paramount importance to do transfers (both ways) and get it right the first time. Being an ex-retailer, I can tell you the cost of doing business doesn't go away, and running a business to make a profit is not a hobby. When you buy on gunbroker, you're paying for the item, shipping, and sales tax, and the transfer fee. If you buy from a local dealer, you'll pay for gun, sales tax, and ten bucks to the MSP. There are no free lunches.
     

    Bob A

    όυ φροντισ
    MDS Supporter
    Patriot Picket
    Nov 11, 2009
    30,691
    Old, collectable and used, generally locally unavailable cries out C&R!

    Shipping fees are an issue; only recently has sales tax become an issue.
     

    Blacksmith101

    Grumpy Old Man
    Jun 22, 2012
    22,163
    I think the OP should take his car to the local dealership and get 20 minutes of work done and then compare the bills. It will give some perspective to the cost of living in Maryland.
     

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