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-   -   are the ffl fees taxed? (http://www.calguns.net/calgunforum/showthread.php?t=646715)

9mill 11-20-2012 9:36 PM

are the ffl fees taxed?
 
or is the sales tax ONLY applied to the sale price? thanks

bohoki 11-20-2012 9:52 PM

to tax a tax oh when will it end

the first $25 should not be taxed if the dealer has any other bookwork fees they slip in beyond the $25 that would be taxed

tenpercentfirearms 11-20-2012 11:33 PM

Quote:

Originally Posted by bohoki (Post 9762911)
to tax a tax oh when will it end

the first $25 should not be taxed if the dealer has any other bookwork fees they slip in beyond the $25 that would be taxed

This isn't quite accurate. The $25 for DROS is not taxed. Anything related to a taxable sale is taxed. DROS is not. So whether it is the first or last $25, unless it is DROS, it normally gets taxed on a taxable sale.

http://oag.ca.gov/firearms/dlrfaqs#40G

Quote:

May I charge sales tax on the DROS fees?
No. On January 1, 1999, the state Board of Equalization ruled that the DROS fees are not subject to retail sales tax. Firearms dealers licensed pursuant to Penal Code section 12071 shall not charge sales tax on the DROS fees. Questions regarding firearms transfer fees can be directed to the DOJ through this website or by calling (916) 263-4887. Questions regarding sales tax can be made to the California Board of Equalization at its website www.boe.ca.gov.

bohoki 11-21-2012 10:36 AM

i was refering to "ffl fees" as referenced in the post title
not the product price sorry for any confusion

kemasa 11-21-2012 10:45 AM

As Wes said, but in different words, if the firearm is subject to sales tax, then the FFL fee is also subject to sales tax.

For a PPT, the firearm is not subject to sales tax, so the FFL fee is not subject to sales tax.

For other FFL transfers, the firearm is typically subject to sales tax, so the FFL fee would also be subject to sales tax. Exceptions are if the firearm is coming from a private party in CA, is an occasional sale and not from a business, as well as a C&R firearm from out of CA from a private seller, is an occasional sale, not from a business, and the buyer has a C&R FFL.

NorCalXJ 11-21-2012 12:31 PM

fffl fees aren't taxed. Only what you purchase

kemasa 11-21-2012 1:24 PM

Quote:

Originally Posted by NorCalXJ (Post 9766179)
fffl fees aren't taxed. Only what you purchase

Well, you go and tell the CA BOE about that and if/when you convince them of that, come back and let us know. Until then, you are completely wrong.

Also read CA Sales Tax Firearms Information 495.0843, 495.0848 & 295.1675.600.

The next question is whether you are a FFL or not, since if you are a FFL you are likely to have some serious sales tax issues, if not, then you just don't know what you are talking about and are giving out false information.

Colonel Monk 11-22-2012 9:59 AM

Kemasa is right. My understanding is that the $25 DROS is non-taxable, but the $10 Dealer fee IS taxable.

I didn't know that the PPT fee wasn't taxable, I guess the state will be getting $0.83 less for each of our PPTs from here on out.

CM

kemasa 11-23-2012 10:07 AM

The PPT FFL fee CAN be taxable if the FFL gets involved with finding the buyer or gets involved with the price of the firearm (in which case it is best for the parties to do the transfer at another FFL).

Any transfer fee/FFL fee is taxable if the firearm is subject to sales tax, which the fee is normally higher than $10.


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