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  #241  
Old 04-24-2014, 9:32 AM
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Ok one more that I may have missed here. A firearm that is used and being transferred in state. For instance seller is in nor cal. They ship an FFL the gun directly so purchaser in so cal can do transfer through them. This is technically a person to person transfer so no tax but does it change since the FFL has go run it as a normal sale through the DROS system? I would think that wouldn't change anything because the FFL wasn't involved in negotiating the price, finding the buyer/seller etc.


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  #242  
Old 04-24-2014, 9:43 AM
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Since an in-state transfer is not required to go through a FFL under Federal law, no sales tax would be required as long as it is an occasional sale and not from a business, as well as the FFL not being involved in finding the buyer/seller or the price.

The issue of new/used (depending on your definition) does not matter, it is just who owns it. Is a firearm which was purchased new from a dealer and which has never been shot outside of the factory new or used? Some say new, others say new. Many feel that being fired is what makes a firearm used. There is no real term for a firearm which has been transferred, but never actually used.
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  #243  
Old 04-24-2014, 9:59 AM
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Quote:
Originally Posted by kemasa View Post
Since an in-state transfer is not required to go through a FFL under Federal law, no sales tax would be required as long as it is an occasional sale and not from a business, as well as the FFL not being involved in finding the buyer/seller or the price.

The issue of new/used (depending on your definition) does not matter, it is just who owns it. Is a firearm which was purchased new from a dealer and which has never been shot outside of the factory new or used? Some say new, others say new. Many feel that being fired is what makes a firearm used. There is no real term for a firearm which has been transferred, but never actually used.

I was using new and used incorrectly. My meaning was it already had state sales tax paid on it. My understanding is an item once sales tax has been paid on it will not have it charged tax again. That was my meaning but it only clouded the situation.


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  #244  
Old 04-24-2014, 10:26 AM
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It does not matter how many times an item has had sales tax collected on it, all that matters is how it is transaction and whether that transaction is subject to sales tax.

A FFL selling a consignment firearm has to collect sales tax on it. If the FFL buys a firearm from a customer and then sells it, sales tax has to be collected on it. A PPT is subject to sales tax if the FFL finds the buyer/seller or gets involved in the price.

If a person in a state which has no sales tax buys a firearm and moves to CA, then later sells it as a PPT, it would not be subject to sales tax unless the FFL gets involved finding the buyer/seller or with the price.

Oh, if a person out of state buys a firearm and sends it to a CA resident as a gift, it is not subject to CA sales tax.
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  #245  
Old 04-24-2014, 11:39 AM
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No clue where I heard that info. But thanks kemasa.


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  #246  
Old 04-24-2014, 11:40 AM
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Quote:
Originally Posted by IronWorksTactical View Post
No clue where I heard that info. But thanks kemasa.
Most likely from customers :-).
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  #247  
Old 04-24-2014, 11:43 AM
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Default When CA FFLs should collect SALES TAX from consumers.

Wrong thread moved to the right one.


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  #248  
Old 04-24-2014, 12:03 PM
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Lol yeah tapatalk was smarter than me one that one.


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  #249  
Old 05-14-2014, 1:27 PM
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I thought that I would attach the following response from the BOE which mentions collecting sales tax if the FFL gets involved in a PPT.

DPF09-06-134_noname.pdf
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File Type: pdf DPF09-06-134_noname.pdf (101.6 KB, 76 views)
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  #250  
Old 05-14-2014, 3:54 PM
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Quote:
Originally Posted by grammaton76 View Post
Question for you: on the Front Sight promotional where we're getting free guns, is there something which covers guns which are free? I guess this is the same as winning one in a raffle, etc.

I have a hunch the state is going to want sales tax on the MSRP of each and every gun we get.
No such thing as free at the very least you technically have to declare anything you have won/or free as income.
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  #251  
Old 05-14-2014, 6:28 PM
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Declaring income is different than a FFL having to collect sales tax.

If he person did not pay anything for it, there is no sales tax.
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  #252  
Old 05-24-2014, 11:03 AM
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Question.
Buying an off roster pistol online, and will be sent to an FFL who will SSE the pistol. CA FFL quoted $100. for all fees including DROS. When I asked about any other fees/taxes, and FFL stated that was it, and said he'll leave the sales tax up to me to submit.
So how do I take care of the sales tax? Is the FFL going to do something to hide the transaction?
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  #253  
Old 05-24-2014, 11:19 AM
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You pay it as Use tax on your 540 but, in fact, the CA dealer is responsible for it.
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  #254  
Old 05-24-2014, 11:30 AM
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As said, you can pay it, but the BOE requires that the FFL collect it. Even if you pay it, if they are audited, they might have a serious problem.

Depending on the FFL, you might do them a favor by informing them of their responsibility. It could ruin their day, week, month, year, decade, etc. if they BOE notices. Some FFLs might not like to be told (you can lead a horse to water ...).
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  #255  
Old 05-24-2014, 1:17 PM
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So if the FFL collects the sales tax, then I dont need to worry about a use tax?
Now since this is an FFL obligation, does that free them up from any penalties if I paid the use tax? what if I also failed to file a use tax?
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  #256  
Old 05-24-2014, 2:14 PM
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Correct, if the FFL collects the sales tax, as they are required to, you don't have to pay the use tax.

I doubt that the BOE would check to see if you paid, plus even if you paid, there is no proof that what you paid was for that item, instead of another item. Due to that and since they are required to pay the sales tax, I doubt that it would make any difference if you paid or not.

In theory, the BOE could go after you for tax evasion for failing to pay.
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  #257  
Old 08-10-2014, 9:24 AM
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