Originally Posted by glock_this
My FFL charges a $40 transfer fee and sales tax on the $40. Is that right? The transfer fee is a service, not a tangible product so I was caught a bit off guard. Not major as it is a few dollars, but I did not think they could charge tax on the fee?
Sales tax on the FFL fee is required if the firearm is subject to sales tax, which in the case that you describe applies. So, you should be paying sales tax on the $40, as well as the total cost of the firearm, including shipping.
Sometimes there is tax on labor/fees per the CA BOE.