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  #1  
Old 07-11-2016, 2:28 PM
jasnusc jasnusc is offline
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Default Taxing Labor? FFL Transfer

I am buying a brand new On Roster gun from out of state and having it shipped to an FFL in California.

I'm paying $1000 for the gun and parts and $300 in custom labor. Should the FFL be taxing me the $300 for labor or just the $1000 in gun and parts?

If you happen to know a tax code or rule that I can show them I would appreciate it.
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  #2  
Old 07-11-2016, 3:13 PM
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BoE says that everything involved inthe transfer, other than the state's S$25 DROS fee is to be taxed, the dealer transfer, the shipping costs, everything.

if the dealer is gonna do the $300 in custom labor, have him do that AFTER you complete DROS so it is just labor and not taxed.

but if the labor is done on the gun before it is DROSed, by either the seller or the LGS, then BoE is gonna say that the value of the gun your receiving is $1300 and they are gonna want tax on $1300
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Old 07-11-2016, 7:23 PM
DEPUTYBILL DEPUTYBILL is offline
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Quote:
Originally Posted by ke6guj View Post
BoE says that everything involved inthe transfer, other than the state's S$25 DROS fee is to be taxed, the dealer transfer, the shipping costs, everything.

if the dealer is gonna do the $300 in custom labor, have him do that AFTER you complete DROS so it is just labor and not taxed.

but if the labor is done on the gun before it is DROSed, by either the seller or the LGS, then BoE is gonna say that the value of the gun your receiving is $1300 and they are gonna want tax on $1300

You need to be careful about the custom work if it is done before the Dros.
Depending on the work done, it could be considered an off roster gun, and unless you are roster exempt, you might not be able to buy it.
To be safe, I would Dros it first,then have the custom work after the Dros is completed and the gun is yours.
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Old 07-12-2016, 4:46 AM
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Quote:
Originally Posted by DEPUTYBILL View Post
You need to be careful about the custom work if it is done before the Dros.
Depending on the work done, it could be considered an off roster gun, and unless you are roster exempt, you might not be able to buy it.
To be safe, I would Dros it first,then have the custom work after the Dros is completed and the gun is yours.
+1 -- Salient Arms for awhile was asking FFLs to DROS their guns as standard Gen3 Glocks (post modification before DROS).. I think they finally realized that was a problem after many FFLs refused to do the transfers that way (including me).

Consider this for reference: If the DOJ considers a different color of a gun (everything else being equal) as a separate line item for the roster than realize anything more than the regular sights/night sights exception is likely not on the roster.
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Old 07-12-2016, 8:39 AM
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Quote:
Originally Posted by ke6guj View Post
BoE says that everything involved inthe transfer, other than the state's S$25 DROS fee is to be taxed, the dealer transfer, the shipping costs, everything.
The DROS is NOT subject to sales tax, everything else is as you said. Look up the BOE info and it specifically says that it is not tax. It used to be, but that was 1999.
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Old 07-12-2016, 8:41 AM
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Any modifications with the exception of sights, but including engraving, makes it off roster.
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Old 07-12-2016, 8:42 AM
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Quote:
Originally Posted by kemasa View Post
The DROS is NOT subject to sales tax, everything else is as you said. Look up the BOE info and it specifically says that it is not tax. It used to be, but that was 1999.
that's what I said, the $25 DROS fee is not taxed, everything else is.
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  #8  
Old 07-12-2016, 8:45 AM
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Quote:
Originally Posted by ke6guj View Post
BoE says that everything involved inthe transfer, other than the state's S$25 DROS fee is to be taxed, the dealer transfer, the shipping costs, everything.

if the dealer is gonna do the $300 in custom labor, have him do that AFTER you complete DROS so it is just labor and not taxed.

but if the labor is done on the gun before it is DROSed, by either the seller or the LGS, then BoE is gonna say that the value of the gun your receiving is $1300 and they are gonna want tax on $1300


Of course they do.

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Old 07-12-2016, 8:45 AM
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Sorry, reading it too quick and I saw "DROS fee is to be taxed".
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  #10  
Old 07-12-2016, 8:59 AM
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Quote:
Originally Posted by kemasa View Post
Sorry, reading it too quick and I saw "DROS fee is to be taxed".
I see that I missed a comma.


BoE says that everything involved inthe transfer, other than the state's S$25 DROS fee, is to be taxed; the dealer transfer, the shipping costs, everything.

that should read better.
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FrontSight Training Course certificates available $25, PM for details on them and other options.
No posts of mine are to be construed as legal advice, which can only be given by a lawyer.
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