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Posted: 2/15/2010 1:32:35 AM EDT
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Hey folks, sorry if these questions have been asked/answered before but I need some dummified answers. Thanks in advance.
From what I know, if an individual has a supressor for sale, in order to complete the transfer the seller must transfer the supressor to a Class 3 dealer (or SOT holder) and then it must be transfered to the buyer (ie me). My question is, do I (the buyer) have to pay two transfer fees ($200 tax stamp)- for the two transfers stated above? Are there any sticky wickets for state to state transfer? GA to FL (both legal to own Class 3) Bottom line, if two transfer fees are envolved (at $200 ea) , then I don't see the fesability of buying Class 3 from another person vs buying new from the dealer. Thanks again |
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If the out-of-state seller is an SOT it would be tax-free to your dealer on a Form 3.
If it is an out-of-state private person it would require another $200 tax payment to get it to your dealer and another $200 to get it to you. If you are both residents of the same state you can do a Form 4 with only one $200 tax paid and no dealer involvement. Kharn |
| Technically the tax is on the transferor (seller) and not the tranferee (buyer) so you wouldn't owe any taxes but the seller would and the SOT in your state would. Of course they never just pay those taxes, they always either increase the price of the item by $200 or say you have to pay it. The two tax thing basically makes it a bad idea to buy a Form 4 suppressor out of state. You can buy a new one and usally it will cost you the same amount, b/c you will only have to pay one tax since the new one will come on a Form 3. |
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Quoted:
Bottom line, if two transfer fees are envolved (at $200 ea) , then I don't see the fesability of buying Class 3 from another person vs buying new from the dealer. Yup. And that's exactly why I tell folks to shop carefully and buy exactly the suppressor you want/need, because the odds are, you will own it forever. They are tough to sell in-state, and impossible to sell out-of-state. If you buy a new $600 suppressor from an in-state dealer, you will have $800 in it ($600+$200 tax) plus any sales tax, by the time you take delivery. So now, to you it represents an $800+ investment. If you decide to sell it in-state, you will be competing with the dealer selling new ones for $600, and no one will pay as much for used when a new one is available. The best you can hope to get for your $800 investment is $500. If you sell it out-of-state, the second tax will have to be reflected in its sale price, so you have to hope you can get $300 ($500-the second $200 tax) for it. And that's a lousy return for an $800 investment. One other point to remember is that suppressor manufacturers are constantly upgrading their designs, and often the older designs are different dimensionally and cannot be upgraded. That knocks the value down even more. When you buy a suppressor, assume you will own it forever, because you probably will. So buy it right the first time. |
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