Class III Out of State Transfer

[WarPig]

I recently purchased a Class III from an individual who already had a form 4 for a firearm (not from a shop.)  The confusion I am having is on the proper way to transfer this item.

 

I have called the ATF and am awaiting their official response but I wanted to see if anyone had been down this road.

 

Since it is across state lines, I assumed the weapon had to be form 3'd from a shop out of state to a shop in state, and then form 4'd to me (just like if you bought it from a shop.) The ATF's website is vague on the matter but it reads like he must form 4 the weapon from him to my shop, and then my shop form 4's it to me.

 

Anyone done this? Is there a way to speed up the process since one is going to a shop and then the same firearm is being transferred to my trust? (I am assuming no and if this is the case I will see this thing hopefully by 2017.)

 

Thanks in advance.

[3gundave]

The present owner will have to form 4 the weapon first.

[LawEnforcementSalesTN]

Thing to remember items are never on Forms, Forms are just the vehicles used to transfer items .... the tax paid or tax not paid has to do with if parties are SOT holders, govt. agencies, etc... ... IF party 1 AND party 2 are SOT holders, a tax free Form 3 can be used to transfer an item between the two regardless of where they are. 

 

However this is not the case... If the item is owened by an individual in another state and you want it here, no way around you two paying 2 transfer taxes.  The item has to be in TN before it can be transfered to you (unless you have a FFL - you'll see explanation below)

 

Fastest way to you would be for him to transfer the item out via a Form 4 directly to a dealer here in TN... then once approved that dealer can transfer it tax paid Form 4 to you.  Would be (2) stamps, (2) waits however the dealer transfer, even though still a Form 4, should go a little faster since they're nothing they (ATF) have to really check.  

 

He could Form 4 it to a local dealer in his state, transfer from that dealer to a dealer here on a tax free Form 3 and then from dealer here to you back on a Form 4 but that's adding 4-8 weeks of going through 2 dealers and god knows how much extra wait when he only needs one.

 

The ONLY reason I see in folks transfering it to a local dealer first is IF the item it is not sold, it makes it more advertisable... folks would prefer to buy an out of state item that is in a dealer's inventory b/c dealer to dealer generally transfers faster.. so it's faster to get an item from an out of state dealer to your dealer than it is an out of state individual to your dealer but not by much ...

 

Only other option not widely known is a regular FFL holder (non SOT) can have an out of state NFA item transfered via a tax paid Form 4 directly to them ... so if you had a C&R FFL or something like that you could cut out one transfer and it come directly to you (tax paid, 1 transfer).  So the GCA controls interstate transfer between licensees while the Form 3/4 regulate the ATF tax of that item.

 

Ping Kris (173rdABN) he's a little closer to you than I am and I'm sure he'd be happy to receive in the item into TN (he's a SOT like myself)  and then Form 4 it to you on the flip side. 

 

Depending on the deal (if this is the MAC you're getting for a sweet deal maybe not) but I try to get folks to negotiate that 1st transfer paid by the seller ... so he covers 1, you cover the 2nd... many will usually do this out of courtesy, others think their items are the NFA unicorms and you're doing them a favor by buying it.. it all depends on the deal but in a case like this you're looking at $400 dollars just in transfer.. this is what normally kills out of state suppressor purchases and it just doesn't warrant the transfer tax. 

 

If Kris doesn't chime in I'll ping him for ya, or if you want to come to Knoxville I'd be happy to help ya get here. 

[WarPig]

Thing to remember items are never on Forms, Forms are just the vehicles used to transfer items ....

Definitely worded it wrong, I was trying to figure out how to word that but that was the best I could do. Thanks for the heads up, I was hoping you would troll along here this evening.

Sent from my SCH-I545 using Tapatalk

[LawEnforcementSalesTN]

I re-read your post, orginally pulled it up on my phone.. you were actually already on the right track I should have simply expanded on that .. it has to get into TN and you had alluded that.... you were close..

 

I use the "item on form" speech when I can .. it gets confusing and so many get wrapped up in where it's been and just try to point out the form has no bearing really on the item..  we're all guily... we even say here in inventory on a form 3 ;o) ...  all has to do with who has it and where it's going.   All this stuff I have in my inventory is "sitting" here on a form 3 but should I not pay my license next year it ALL would automagically be then taxable and anything I subsequently sold would go out on a Form 4 even if to another dealer.

 

I have a post sample I got from an old dealer who let his license lapse and he had to transfer it to me on a tax paid Form 4 ... strange to see a post sample machinegun come in on a F4!