View Full Version : Tax on out of state firearm purchases
dexter9659
06-22-2008, 11:51 PM
After purchasing 2 shiny new HK USCs from my FFL in AZ I turned to my local FFL to ask about their transfer fees. I was informed of their basic fees which were within normal extortion limits, but then was amazed to learn the state charges tax on my rifles. I never really thought about it until now, but doesn't charging tax on an item purchased in another state in some manor or another a violation of interstate commerce? Perhaps someone can explain.
ke6guj
06-22-2008, 11:55 PM
read this thread, http://www.calguns.net/calgunforum/showthread.php?t=74622 , about how one FFL has been told by the Board of Equalization that he is responsible for collecting sales tax on out-of-state sales from dealers.
hoffmang
06-22-2008, 11:55 PM
If you use the search feature you'll see this issue hashed out in depth.
The current state of the law is that the BOE has incorrectly promulgated a letter ruling that requires CA FFL's to collect use tax (which is the equivalent of sales tax rate wise but is owed and payable by the end user and not generally collected by a retailer) in violation of California law.
When things settle down a little bit on the firearms law front, I expect The Calguns Foundation will be doing a little work with BOE to set them straight on this. In the meantime, FFLs run a risk not collecting use tax (even though it is a small risk.)
-Gene
dexter9659
06-23-2008, 12:06 AM
Thanks for the info!
thomasanelson
06-23-2008, 11:19 AM
My FFL even charges sales tax on "Used" guns.
HowardW56
06-23-2008, 11:43 AM
My FFL even charges sales tax on "Used" guns.
Sales tax on used guns is appropriate if he is selling them...
Curious about the issue of sales tax with regards to buying a firearm as a gift in which the retailer and the gift recipient reside out of state (both in TX).
Will the retailer charge me tax for an out of state sale if the product doesn't leave their state?
G17GUY
06-25-2008, 09:33 PM
:chillpill:i wonder if you said that to your cali ffl if he would do transfers for you anymore.you like to get paid for your time right.if you don't like the transfer fees then you can get an ffl and bring them in your self.
halifax
06-25-2008, 10:17 PM
Curious about the issue of sales tax with regards to buying a firearm as a gift in which the retailer and the gift recipient reside out of state (both in TX).
Will the retailer charge me tax for an out of state sale if the product doesn't leave their state?
If I'm reading this correctly, you are paying a TX dealer for a gift to be delivered to a TX resident. In that case you probably will pay the TX sales tax (if any).
Yeah that's the scenario. Figured that would probably be the case, but it's one of those oddball things that was making me scratch my head.
vBulletin® v3.8.1, Copyright ©2000-2009, Jelsoft Enterprises Ltd.