Sales Tax Question

[JBI812]

We expect brick and mortar retail stores to collect sales tax. But individuals at the gun shows doing Private Sales are not necessarily subject to the sales tax law. Although its similar to a garage sale where sales tax is not reported. That bring me to my question. When a individual is selling firearms as "final out the door price" doesn't that imply that sales tax is included? And if he implies that sales tax is included, wouldn't they be obligated to forward the money to the State of Indiana. Otherwise, they are putting the sales tax money in their pockets as profit enhancement. If no sales tax is involved, two sales being equal, should one be 7% cheaper than the other?

 

[HoughMade]

If it is truly a private sale, meaning a "merchant" is not involved and there is no "retail" sale under Indiana law, no sales tax is owed.

http://www.in.gov/legislative/ic/2010/title6/ar2.5/ch1.pdf

http://www.in.gov/legislative/ic/2010/title6/ar2.5/ch2.pdf

 

[citizenkane]

I think you are thinking too hard into this.

That and some of the individuals at shows seem to think they are a business of some kind and they try and talk like it.
I've had a guy pull that junk on me. I asked his best price and he said he could do that amount "out the door". I guess if I was bored I could have called the Indiana revenue service but I have better things to do. I just moved on.

 

[mkgr22]

We expect brick and mortar retail stores to collect sales tax. But individuals at the gun shows doing Private Sales are not necessarily subject to the sales tax law. Although its similar to a garage sale where sales tax is not reported. That bring me to my question. When a individual is selling firearms as "final out the door price" doesn't that imply that sales tax is included? And if he implies that sales tax is included, wouldn't they be obligated to forward the money to the State of Indiana. Otherwise, they are putting the sales tax money in their pockets as profit enhancement. If no sales tax is involved, two sales being equal, should one be 7% cheaper than the other?

So, are you saying that after you negotiate an "Out-the-door" price, that you should get a seven percent discount if the seller is not a merchant? Why does it matter to you if you are satisfied enough with the price to give that much for your purchase? Not trying to flame you, I'm just wondering where the question came from.

 

[Manatee]

The Indiana Dept of Revenue occasionally shows up at these events and checks sales tax I.D. If you don't have an ID #, things may escalate. If you collect sales tax and don't remit it, you have comitted fraud and could be jailed and fined.

Some folks will do a lot of strange things. In my mind, this is another stupid scofflaw attempt that isn't worth the risk.

 

[j4jenk]

I think the term "out the door" is intended to mean total sum of money that is required to make the purchase. This would include any tax, fee, handling, or other charges, think car dealer. I wouldn't expect a private seller to charge any fees, so saying out the door might be redundant, but could still be accurate.

As a side note, anyone who charges you tax on a gun without holding an FFL is engaging in the business of selling firearms without a license.

 

[HDSilvrStreak]

"Out the Door" price will include tax. If they are not a retailer, they don't collect tax. If they are a retailer, they are still collecting tax.

If you negotiate a $400 price out the door, the retailer should report a selling price of $373.83 and tax collected of $26.17 (7%). So even though you are getting out the door pricing, tax is still collected and reported. That is my understanding.

 

[sgtonory]

We expect brick and mortar retail stores to collect sales tax. But individuals at the gun shows doing Private Sales are not necessarily subject to the sales tax law. Although its similar to a garage sale where sales tax is not reported. That bring me to my question. When a individual is selling firearms as "final out the door price" doesn't that imply that sales tax is included? And if he implies that sales tax is included, wouldn't they be obligated to forward the money to the State of Indiana. Otherwise, they are putting the sales tax money in their pockets as profit enhancement. If no sales tax is involved, two sales being equal, should one be 7% cheaper than the other?

Calm down junior deputy. Taxes are theft plain and simple. If anyone can avoid being stolen from good for them.

 

[Indy_Guy_77]

"Out the Door" price will include tax. If they are not a retailer, they don't collect tax. If they are a retailer, they are still collecting tax.

If you negotiate a $400 price out the door, the retailer should report a selling price of $373.83 and tax collected of $26.17 (7%). So even though you are getting out the door pricing, tax is still collected and reported. That is my understanding.

This is how it SHOULD be, yes.

-J-