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bigguy901
04-07-2011, 9:26 PM
So what is the deal, I am looking at buy a Rifle from out of state and trying to find a FFL with good transfer rate and getting quotes and also some FFL are now saying that they have to collect CA sales tax? So what is up with this?

Baconator
04-07-2011, 9:29 PM
I have read that the state is pushing out of state vendors to collect and pay sales tax on items being sold to residents of the state. I don't understand how they can do it, but it might be something to do with that.

EBR Works
04-07-2011, 9:32 PM
The California state BOE has mandated that dealers collect use tax on all out of state transfers from retailers. Transfers from out of state private parties are exempted. Dealers were basically told that they would be liable for the tax if they did not collect it.

nick
04-07-2011, 9:34 PM
So what is the deal, I am looking at buy a Rifle from out of state and trying to find a FFL with good transfer rate and getting quotes and also some FFL are now saying that they have to collect CA sales tax? So what is up with this?

CA FFLs are actually supposed to collect USE tax on the out-of-state firearms you buy from out-of-state companies and transfer through those CA FFLs. If you buy it from a private person from outside CA, then no use tax is due.

You're not saying that an out-of-state FFL is trying to collect CA sales tax, but the CA FFL you're transferring at is doing that, right? I know CA is pushing for out-of-state retailers to collect sales tax for it, but it'll likely be slapped down hard for it.

bigguy901
04-07-2011, 9:35 PM
I agree, don't see how this is enforceable. How can some stores, in the minority say they have to collect sales tax, while some stores are not collecting the Tax from out of state transfers. I for one will not buy support stores that are collecting the sales tax.

SR-71 BLACKBIRD
04-07-2011, 9:42 PM
I had the same issues recently when buying my ar15. So I bought my lower from the local gun store and upper out of state. Shipping was kinda free and no sales tax.

nick
04-07-2011, 9:43 PM
I agree, don't see how this is enforceable. How can some stores, in the minority say they have to collect sales tax, while some stores are not collecting the Tax from out of state transfers. I for one will not buy support stores that are collecting the sales tax.

The online/out of state stores that collect CA sales tax are the ones that have a physical presence in CA, so they have no choice in the matter. For example, Best Buy would collect CA sales tax regardless of where its website you're buying from is hosted and where the warehouse they ship your purchase from is located. They have brick and mortar stores in CA, so they have to collect CA sales tax. For example, Danner, while being in OR, collects CA sales tax as they have a sales office here.

The CA FFLs that don't collect CA use tax during FFL transfer that's not from a private party are one BOE audit away from having to pay that use tax they didn't collect themselves. It's disgusting on the part of the state, and CA is in the wrong here (although I doubt I'll see it slapped down on the use tax issue in my lifetime), but that's the way it is.

nick
04-07-2011, 9:45 PM
I had the same issues recently when buying my ar15. So I bought my lower from the local gun store and upper out of state. Shipping was kinda free and no sales tax.

You're still supposed to pay use tax on that upper, but few people pay it. Companies do though. The company I work for used to buy things online and not pay use tax. During the annual audit (friendly audit, not a BOE one) the auditors pointed it out, and the company had to pay the use tax on all those purchases where they "saved" on the sales tax by buying online.

Librarian
04-07-2011, 9:47 PM
I agree, don't see how this is enforceable. How can some stores, in the minority say they have to collect sales tax, while some stores are not collecting the Tax from out of state transfers. I for one will not buy support stores that are collecting the sales tax.

Oh, it's easy for the Board of Equalization to file actions against FFLs. They're subject to audits, and it's pretty hard for them to hide.

Here's what's likely:

An FFL is audited, and some out of state transactions are identified.

BOE checks the records to see if the CA taxpayer has declared and paid the use tax on the transaction (if the FFL is lucky, that is.)

The BOE, not having the use tax on file, fines the FFL and collects the tax.

So of course, to protect your business partner, you are going to pay the use tax, and send a copy along to your FFL, right?

paul0660
04-07-2011, 9:52 PM
I really don't think it is disgusting. Charging the use tax, or sales tax, or whatever, evens the playing field with California retailers.