Are consignment purchases taxed?

[DRM6000]

Are consignment purchases taxed? I searched and I couldn't find a clear answer. In one thread it was stated that consignments are taxed. In my one past consignment purchase, I did not have to pay tax.

Consignment are treated as PPTs right?

[s281c]

Are consignment purchases taxed? I searched and I couldn't find a clear answer. In one thread it was stated that consignments are taxed. In my one past consignment purchase, I did not have to pay tax.

Consignment are treated as PPTs right?

All consignments I've purchased have been taxed.

[Jeff P]

The consignment that I just DROS, at a brick and mortar store was taxed.

[Rudolf the Red]

I would not tax it.

[halifax]

The dealer was the facilitator (i.e., nexus) to the sale; therefore, it is taxable by BOE reasoning.

[gcvt]

Indeed.

[s281c]

I would not tax it.

Hah I wouldn't want to be in your shoes when the BOE comes a calling......

[56Chevy]

I was taxed on a consignment purchase, but the gun was only $99. The tax plus the DROS was less than what a PPT would have been.

[DRM6000]

oh great, it's looking like i'll have to pay tax on it.

[randy]

Yes indeed when you buy a consignment gun it is taxed. You are buying it from a retailer, retailers charge tax.

[Miltiades]

Plug for PPTs

This is just another reason to do private party transfers, which are not taxed. On a $600 gun you save almost $50 by avoiding the tax. And you know the dealer's cut on the deal will somehow be reflected in your paying a higher price than if you dealt direct with the seller.

By the way, I only recall doing one consignment purchase, about 2 years ago, and it was not taxed. But I believe those who say it is now the norm to tax such sales.

[zcktomcat]

Technically you are supposed to report the untaxed sales like PPTs on your income taxes at the end of the year and then pay the sales tax on it.

[halifax]

Technically you are supposed to report the untaxed sales like PPTs on your income taxes at the end of the year and then pay the sales tax on it.

I believe "occasional" sales between private parties are not subject to use/sales tax. But they'll be next, I'd bet.

[DRM6000]

well, i was taxed on the consignment purchase. i guess that answers the question for me.