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View Full Version : Paying tax on coonsignment gun


Buddhabelly
01-02-2010, 9:27 PM
I saw a consigned gun at Sportmen's Supply today that I like. Do I have to pay tax if I bought it?

Saym14
01-02-2010, 10:12 PM
probably - but not sure. you have to pay sales tax when you buy a used car even pp.

BlackonBlack
01-02-2010, 10:14 PM
I would strongly think you'd have to. You are buying it from a retail store.

CA Gun Laws Suck
01-02-2010, 10:15 PM
Yes, you do unfortunatly.

BlackonBlack
01-02-2010, 10:16 PM
California is definitely not going to let am opportunity to gouge someone pass.

tiko
01-02-2010, 10:29 PM
Even dead people got to pay tax, unbelievable but it is true.

Saym14
01-03-2010, 1:48 AM
TEA party anyone? :)

RockinCali
01-03-2010, 6:53 AM
You probably have to pay tax BUT with that said, I use to know mgrs of certain FFLs and they would never have me pay tax on the consignments I got.

nic
01-03-2010, 6:55 AM
I had to pay sales tax on a consignment gun I bought last month.
Sucks the big one, don't it?

RockinCali
01-03-2010, 7:01 AM
only benefit is it doesn't count against the 1 in 30. I drosed two consignments on the same day before

thefurball
01-03-2010, 7:52 AM
Call the store, ask for the manager for the firearms department and ask.

Always write down the name so you can refer to them later if any questions come up.

"I spoke with John Smith on the phone earlier ..." is far more authoritative that "Well, I spoke with someone on the phone earlier...".

littlejake
01-03-2010, 8:45 AM
only benefit is it doesn't count against the 1 in 30. I drosed two consignments on the same day before

That's because consignments are actually PPTs and PPTs are exempt from the 1 in 30.

kurac
01-03-2010, 8:51 AM
The government always wants cut of the action, think of it as protection money, kind of like what a gang or mob charges to keep you safe.

CSACANNONEER
01-03-2010, 8:55 AM
Even if you buy something out of a newpaper, from a swap meet or from some guy on the corner, you are legally required to pay sales tax. This includes out of state purchases on all internet or mail order items which are shipped here. IF you choose not to pay them, you have broken the law. So, of course you need to pay sales tax on a consignment gun.

Saym14
01-03-2010, 10:51 AM
Even if you buy something out of a newpaper, from a swap meet or from some guy on the corner, you are legally required to pay sales tax. This includes out of state purchases on all internet or mail order items which are shipped here. IF you choose not to pay them, you have broken the law. So, of course you need to pay sales tax on a consignment gun.

yup - on the CA state income tax form there is a place for you to make this "donation".

just think they are taking your money to pay legislators that are taking away your rights!!! :chris:

bsg
01-04-2010, 1:52 AM
i have always paid taxes when i have purchased a consignment gun; after all, i was the purchaser and bought from a retail store.

Colt-45
01-04-2010, 1:51 PM
You most likely will pay tax on a consignment gun but then again almost EVERY STORE has their own set of rules.

qaz987
01-04-2010, 2:31 PM
I've always had to pay the tax on consignments, makes PPT's even more desirable. :D

Topgoodfella
01-06-2010, 7:45 PM
Yes you do. i just bought a used .38 on consignment and had to pay sales tax. i offered him the asking price out the door and he went for it, its worth a shot.

Welcome to California

RTE
01-06-2010, 7:55 PM
Sorry to say It's not just California
Buy loocal used from an auction or Pawn shop and you get the Privilage of the tax.

If you buy used someone already paid the tax.
You should not have to pay it again

That being said double taxation it becoming a popular money generator :(

What I was told is becuase you bought something thru a retail shop you have to pay sales tax.

Now that you have to pick up purchases from a FFL....it falls under the retail shop clause and your required to pay tax.

Not right becuase someone paid the taxes on the item already,but becuase it is considered another retail transaction......
YUP you pay again for the privilage

CSACANNONEER
01-09-2010, 10:36 AM
Sorry to say It's not just California
Buy loocal used from an auction or Pawn shop and you get the Privilage of the tax.

If you buy used someone already paid the tax.
You should not have to pay it again

That being said double taxation it becoming a popular money generator :(

What I was told is becuase you bought something thru a retail shop you have to pay sales tax.

Now that you have to pick up purchases from a FFL....it falls under the retail shop clause and your required to pay tax.

Not right becuase someone paid the taxes on the item already,but becuase it is considered another retail transaction......
YUP you pay again for the privilage

You obviously don't understand taxes. Do you have any idea of how many times taxes are paid on a simple loaf of bread just to get it to the store? You might not pay sales tax when you buy it but, well over 50 different taxes have already been paid before the consumer ever sees it.

Are you aware that if you buy something from a Walmart in Texas, Ohio or any other state and bring it to California, you are required to pay a California use tax on it? Try buying a new car in NV and registering it in California. Yep, you will need to pay thousands in taxes to do it.

If you don't want to pay taxes of any kind, look into becoming a sovereign citizen of United States of America. This is completely different than a United States Citizen and I grantee that you will spend your life in court fighting for your legal rights but, if you are good, you can win almost every case just in time for "them" to file another one against you. Of course, you also run the risk of loosing everything you own to a corrupt system. I remember old Dick Ford lost the "Outlaw Ranch" this way.

den888
01-09-2010, 5:02 PM
Sales tax on a consignment gun is always paid. I bought 2 consignment guns at a shop and sales tax was paid. The best deal (if you can find it) is a PPT.

littlejake
01-09-2010, 7:17 PM
Sales tax on a consignment gun is always paid. I bought 2 consignment guns at a shop and sales tax was paid. The best deal (if you can find it) is a PPT.

To comply with tax law you are supposed to pay tax on a PPT also. Even if you bartered for it and no money changed hands. The market value is supposed to be reported on your state income tax form and use tax paid at the prevailing sales tax rate for your place of residence.

halifax
01-09-2010, 8:19 PM
To comply with tax law you are supposed to pay tax on a PPT also. Even if you bartered for it and no money changed hands. The market value is supposed to be reported on your state income tax form and use tax paid at the prevailing sales tax rate for your place of residence.

I'm going to have to disagree with you on this one. As long as a dealer had nothing to do with the negotiated sale (i.e., only does the paperwork), a PPT is considered an occassional sale and is exempt from sales tax.

This was posted a while back:

Date : November 5, 2007 From : Bradley Miller Business Taxes Specialist, MIC 44 Reference : F07-10-047 - 1018 - 1102 Subject : Firearms 100 604540 Thank you for your recent e-mail requesting our advice regarding the proper application of the California Sales and Use Tax Law. As a preliminary matter, section 6596, “Excusable Delay-Reliance on Advice,” of the California Sales and Use Tax Law grants taxpayers relief from future liabilities if the underreported tax is based on incorrect written advice provided by a Board representative. However, without specific details regarding the transactions in question, I cannot provide you with a specific opinion. The answer given is intended to provide general information regarding the application of tax based on the information you have provided and will not serve for relief of liability under section 6596. If an in-state purchaser of a firearm purchases the firearm from an out-of-state person who is not a retailer, the drop shipment provisions do not apply and the transaction is not subject to tax. The drop shipment provisions provided by Revenue and Taxation Code section 6007 and Regulation 1706 only apply in a situation where you are processing a sale on behalf of an out-of-state retailer. Sales between private parties are not subject to tax as occasional sales, regardless of whether the private party seller is located in-state or out-of-state. If you are processing the paperwork for an in-state purchaser pursuant to a sale of the firearm by an out-of-state retailer, you would be responsible for collecting the use tax from the purchaser based on the purchase price of the firearm. I would think in most casesthepurchaseryouareprocessingthesaleforshouldh aveasalesreceiptofsome
kind issued by the out-of-state retailer documenting the purchase price. In the event the purchaser does not have such a receipt, you may wish to contact the retailer directly for a copy of such documentation. I would recommend making a copy of this receipt for your records to document the amount you collected tax on. If the amount shown on the invoice is below the firearms retail value, you should still use the purchase price shown on the invoice in calculating the tax due. If neither the purchaser nor the retailer provides you with documentation establishing a purchase price, I recommend you use a fair retail value of the firearm in calculating the amount of tax due. I hope this information is helpful. If you have any further questions regarding this or any other issue, please write again or call our Information Center at (800) 400-7115. You may also visit our website at www.boe.ca.gov.

If the occassional sale is not subject to sales tax, I don't see how it would be subject to use tax.

den888
01-10-2010, 7:35 AM
Question - if this was the case, I think the state would have put in a mechanism to make sure that those taxes would have been paid. Probably by asking the FFL to collect when the DROS is processed. Yes ? No ?


To comply with tax law you are supposed to pay tax on a PPT also. Even if you bartered for it and no money changed hands. The market value is supposed to be reported on your state income tax form and use tax paid at the prevailing sales tax rate for your place of residence.

halifax
01-10-2010, 9:45 AM
Question - if this was the case, I think the state would have put in a mechanism to make sure that those taxes would have been paid. Probably by asking the FFL to collect when the DROS is processed. Yes ? No ?

Indeed the BOE would have a mechanism in place if they considered these occasional sales taxable but they do not. The quoted text from the BOE email above shows that PPT occasional sales are exempt from the measure of tax.

Specifically:

...Sales between private parties are not subject to tax as occasional sales, regardless of whether the private party seller is located in-state or out-of-state...

den888
01-10-2010, 11:38 AM
Thanks ! I know that the state isn't about to let nickel of "revenue" go, especially due to the current financial crisis. If PPT's were taxed, the bozos that run the state would have put in a mechanism already.


Indeed the BOE would have a mechanism in place if they considered these occasional sales taxable but they do not. The quoted text from the BOE email above shows that PPT occasional sales are exempt from the measure of tax.

Specifically:

halifax
01-10-2010, 11:43 AM
Thanks ! I know that the state isn't about to let nickel of "revenue" go, especially due to the current financial crisis. If PPT's were taxed, the bozos that run the state would have put in a mechanism already.

I should have been clearer. The BOE already has the mechanism in place. Dealers are required to collect tax on all retail sales. All the BOE would have to do is change their policy to say occassional sales are not exempt from tax.

RTE
01-10-2010, 3:28 PM
You obviously don't understand taxes. Do you have any idea of how many times taxes are paid on a simple loaf of bread just to get it to the store? You might not pay sales tax when you buy it but, well over 50 different taxes have already been paid before the consumer ever sees it.

Are you aware that if you buy something from a Walmart in Texas, Ohio or any other state and bring it to California, you are required to pay a California use tax on it? Try buying a new car in NV and registering it in California. Yep, you will need to pay thousands in taxes to do it.

I read something on that years back
I understand the Vehicle thing with the use tax bought out of state.
The rest is just the BOE greed.
goes something like thisfrom their web site.

The Board of Equalization (BOE) wants to make it easy for you to report and pay use tax. For taxable years beginning on or after January 1, 2003, if you made purchases from out-of-state or Internet sellers and did not pay California use tax, you may be able to report the California use tax on your personal or business income tax return.

You generally owe California use tax when you use, consume, give away or store tangible personal property (i.e., products you can see, weigh, feel or touch, such as clothing, books, computers, DVDs or CDs) in California that you purchased from an out-of-state vendor. If the out-of-state vendor does not collect the California tax on your purchase, you must pay the tax.

Remember when you Paid cash and no one knew your business?