In WA state....
B&O tax is just that...Business and Occupation tax. If you are in the "business" of buying and selling firearms, and have both a federal and state business license to do so...yes you will pay Business and Occupation tax. 1% of gross on retail. If you are not in the "business" and do not have a state issued license to be in that business...no, you do not pay B&O tax..
Use tax is basically sales tax for something you did not pay sales tax on, that you use in your business, or something that has been purchased outside the state that, if purchased within the state, would qualify for sales tax.
If you purchase a firearm from someone out-of-state, and the purchase goes through a state licensed FFL...you will be charged "use" tax...at whatever that FFL's local sales tax rate is. You will not be taxed for B&O tax...that is the dealer's business tax, not yours.
If you have a C&R, and purchase outside the state, and do not go through a WA state licensed dealer, you will be liable for the "use" tax, but it will be "voluntary" to report that purchase.
Last edited by hermannr; October 22, 2012 at 04:49 PM.