Private Tax

[Chvl67 0]

If purchasing a handgun person to person, do you have to pay tax somehow on a used firearm?

[PK90 3,573]

NO. One must be authorized by the state to collect sales tax.

[Clintoon Eastwood 2]

Did somebody try to tell you otherwise?

[mipafox 438]

NO.  One must be authorized by the state to collect sales tax.

 

But if you don't pay sales tax on a taxable item you owe use tax. Sales tax is collected by a licensed seller, use tax is owed by a buyer when not collected by seller.

[Howard 538]

But if you don't pay sales tax on a taxable item you owe use tax. Sales tax is collected by a licensed seller, use tax is owed by a buyer when not collected by seller.

 

No that is an interesting issue. Most who buy things over the internet never bother paying the use tax, and it is hard if not impossible for the state to track you down. But I wonder if they are smart enough to match firearms permits with use tax filings and then come after you?

[PK90 3,573]

So, is one required to pay a use tax on EVERY purchase made? Yard sales, lemonade stands, NJGF listings, etc.

 

Sent from my DROID4

[RubberBullets 65]

So, is one required to pay a use tax on EVERY purchase made? Yard sales, lemonade stands, NJGF listings, etc.

 

Sent from my DROID4

 

The gov wants their cut!

 

Feed me Seymour....Feed me.

[jonfoxx 4]

So, is one required to pay a use tax on EVERY purchase made? Yard sales, lemonade stands, NJGF listings, etc.

 

Good point, whenever I have a yard sale, I have to get a township issued permit. But they've never showed up afterwards asking for tax money even though they have an official record of my doing so...

[PK90 3,573]

One must be in the business of "INSERT TYPE HERE" to collect sales tax for the government. If I sold you my lawn mower, I can't collect sales tax on it as I do not normally sell them. I believe that mipafox is implying that YOU must pay the USE TAX on it. I don't think so. I believe that the tax was already paid on the lawnmower when purchased new by me. Automobiles are different and are taxed each time there is a sale. Why? :unknw:

[djg0770 481]

Automobiles are different and are taxed each time there is a sale. Why? :unknw:

 

BECAUSE THEY CAN.

[maintenanceguy 510]

Automobiles are taxed after the sale because they are big ticket items and the government wants to be sure they got their cut - they aren't going to trust you to pay the use tax on something that big.

 

And yes, you are supposed to pay the tax on all purchases whether the taxes are collected during the sale or not. Here in South Jersey, a lot of shopping happens in Delaware tax free. We are supposed to report all of that to the state and pay the sales tax.

[Chvl67 0]

Thanks-didn't think so. Was just curious. I've never bought a firearm person to person before.

[halbautomatisch 60]

One must be in the business of "INSERT TYPE HERE" to collect sales tax for the government. If I sold you my lawn mower, I can't collect sales tax on it as I do not normally sell them. I believe that mipafox is implying that YOU must pay the USE TAX on it. I don't think so. I believe that the tax was already paid on the lawnmower when purchased new by me. Automobiles are different and are taxed each time there is a sale. Why? :unknw:

If you buy a used gun from a person and then resell it, you as a dealer must collect sales tax on that gun even though it was most likely taxed when it was sold new.

 

If it's a taxable product, the buyer is obligated to pay use tax on the item if they didn't pay sales tax on it when they bought it. That being said, almost nobody does.

[intercooler 41]

So, is one required to pay a use tax on EVERY purchase made? Yard sales, lemonade stands, NJGF listings, etc.

 

Sent from my DROID4

yes...you are supposed to pay it when you do your income tax i recall....

[Pythagoras 2]

yes...you are supposed to pay it when you do your income tax i recall....

 

This is correct. I've filed my own taxes a few times, and everything you buy (even if it's used) is technically subject to "use tax." Even if you buy it in another state with 5% tax rate, you're supposed to come back and give the remaining 2% to NJ just because.

 

Of course, they have virtually no way of enforcing this so usually people don't worry about it. Also, if your income is less than $20,000 $10,000 a year then you owe nothing to NJ so use tax doesn't apply (this applies to me as a college student dependent on parents. For couples filing jointly, the cut-off is $20,000.)

Edited March 5, 2013 by Pythagoras

[DSD1026 48]

whatever you do, dont buy cigarettes from a Reservation online.. if you do, they will give their sales lists to state governments if they are put under enough pressure and you will owe a lot in taxes..

 

ask me how i know.. lol

[Qel Hoth 33]

 

 

This is correct. I've filed my own taxes a few times, and everything you buy (even if it's used) is technically subject to "use tax." Even if you buy it in another state with 5% tax rate, you're supposed to come back and give the remaining 2% to NJ just because.

 

Of course, they have virtually no way of enforcing this so usually people don't worry about it. Also, if your income is less than $20,000 a year then you owe nothing to NJ so use tax doesn't apply (this applies to me as a college student dependent on parents).

 

Have a cite for that? Last year I made 15k and owed 200 to nj for income tax, plus all the other state taxes.

[Pythagoras 2]

Sorry, I misremembered the details.... The $20,000 cap is for couples filing jointly. If single, the cap is $10,000. My apologies, will correct above post.

 

Cite: See NJ-1040 instructions, page 6 and page 28

www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf

 

Page 28: "If you were a New Jersey resident for the entire year and your Gross Income on Line 28 is $20,000 or less ($10,000 if filing status is single or married/CU partner, filing separate return), you have no tax liability to New Jersey and no return must be filed. If you are filing a return only to obtain a refund of taxes withheld or estimated payments made, do not complete Lines 29 through 44. Continue completing the return with Line 45. See instructions on page 36"

 

So if your income is low enough (mine is), you owe no tax but they still let you file a return to get your money back.

[mipafox 438]

So, is one required to pay a use tax on EVERY purchase made? Yard sales, lemonade stands, NJGF listings, etc.

 

Sent from my DROID4

 

Yes.

[nuclearheli 40]

As stated above the buyer is required to report the sale and pay the tax. So if you purchased your 80" TV from Amazon and didn't pay tax then NJ expects you to report that and pay the taxes.

 

HOWEVER, the law allows for exemptions!!!

 

Most states maintain an ‘‘occasional or isolated sales’’ exemption that can be applied to asset purchases. Those exemptions typically apply to transactions that do not regularly occur. For example, if a couple sells an old piece of furniture because they recently purchased a new living room set, the sale may be exempt from tax because the couple does not typically sell their furniture. So if you purchased a firearm from your buddy who is not in the business of selling firearms, your not responsible for paying any sales tax.

 

GUESS WHAT, for the first time NJ is an Exempt state!!!! Holy cow.