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  #1  
Old 08-12-2019, 11:22 AM
Irish-Dannyboy Irish-Dannyboy is offline
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Default Sales tax on transfers?

Do we pay CA sales tax during pick up at our FFL? Its added on to the total price of gun? So for example we pay $600 online for gun now at FFL we pay the transfer fee plus the 9.5 sales tax on 600?

Thanks
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Old 08-12-2019, 11:30 AM
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Quote:
Originally Posted by Irish-Dannyboy View Post
Do we pay CA sales tax during pick up at our FFL? Its added on to the total price of gun? So for example we pay $600 online for gun now at FFL we pay the transfer fee plus the 9.5 sales tax on 600?

Thanks
Yes. Assuming online retailer didn't charge tax.
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Old 08-12-2019, 11:33 AM
Irish-Dannyboy Irish-Dannyboy is offline
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Originally Posted by Rakso View Post
Yes. Assuming online retailer didn't charge tax.

Also is it added to the gun price or is it added to everything, transfer fee and DROS etc?

Thanks
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Old 08-12-2019, 12:53 PM
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Sales tax is typically due on the transfer of a firearm, with some limited exceptions. If the seller isn't considered a CA retailer, then the CA FFL transfer dealer is. If the seller is a CA retailer, then they are also supposed to collect sales tax on the FFL transfer fee, as well as the shipping since the item isn't sent directly to the buyer.

Sales tax is based on the total cost of the firearm, including shipping, and the FFL fee. The DROS isn't subject to sales tax.
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Old 08-12-2019, 12:59 PM
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Quote:
Originally Posted by Irish-Dannyboy View Post
Also is it added to the gun price or is it added to everything, transfer fee and DROS etc?

Thanks
Transfer fee and DROS are not taxable.
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  #6  
Old 08-12-2019, 1:06 PM
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The transfer fee is taxable. Maybe your FFL doesn't charge tax on it but they're (or at least SHOULD) paying it. For example....Us, we charge $25 but we really are less than that due to the couple bucks tax on it.
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Old 08-12-2019, 3:01 PM
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Originally Posted by JCHavasu View Post
Transfer fee and DROS are not taxable.
Only half correct.If the firearm is subject to sales tax, so is the transfer fee.
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Old 08-12-2019, 3:03 PM
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Quote:
Originally Posted by acespawnshop View Post
The transfer fee is taxable. Maybe your FFL doesn't charge tax on it but they're (or at least SHOULD) paying it. For example....Us, we charge $25 but we really are less than that due to the couple bucks tax on it.
So you include the sales tax as part of your transfer fee? That seems like it could be confusing if the firearm isn't subject to sales tax.
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Old 08-12-2019, 3:47 PM
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Quote:
Originally Posted by kemasa View Post
Only half correct.If the firearm is subject to sales tax, so is the transfer fee.
Hmmm, Ok. Not what I understood but thanks for the correction.
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  #10  
Old 08-12-2019, 4:25 PM
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Quote:
Originally Posted by JCHavasu View Post
Hmmm, Ok. Not what I understood but thanks for the correction.
Talk to the CDTFA (was BOE). I have.
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  #11  
Old 08-12-2019, 7:15 PM
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So you’re saying like on the few occasions we have a tax exempt transfer that our fee then is now not taxable?
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Old 08-12-2019, 7:22 PM
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Not transfers, sales. I donít think this effects PPTís. Please correct me if Iím wrong.
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Old 08-12-2019, 7:54 PM
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Quote:
Originally Posted by acespawnshop View Post
So youíre saying like on the few occasions we have a tax exempt transfer that our fee then is now not taxable?
Now? That is the way it has been. If the firearm isn't subject to sales tax, the FFL isn't, according to what I was told by the BOE.
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Old 08-12-2019, 7:56 PM
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Quote:
Originally Posted by DolphinFan View Post
Not transfers, sales. I donít think this effects PPTís. Please correct me if Iím wrong.
Sales are subject to sales tax, some transfers are not, such as a gift, even from out of state (as long as it is a real gift and not a fraud).

PPTs can be subject to sales tax if the FFL gets involved in finding the buyer or seller or get involved in the price of the firearm.
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Old 08-13-2019, 2:06 PM
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Quote:
Originally Posted by kemasa View Post
Now? That is the way it has been. If the firearm isn't subject to sales tax, the FFL isn't, according to what I was told by the BOE.
You probably told me that 8 years ago but I didn't listen.
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Interstate Transfers $25 plus $25 DROS and tax. ammo transfers $15 plus tax
Email acesjewelryandloan@hotmail.com if you need us to do a transfer!
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  #16  
Old 08-13-2019, 4:36 PM
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Quote:
Originally Posted by acespawnshop View Post
You probably told me that 8 years ago but I didn't listen.
And it is likely you won't listen this time either :-).
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Old 08-13-2019, 6:32 PM
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When I ask again in 2026 don’t hold it against me.
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Interstate Transfers $25 plus $25 DROS and tax. ammo transfers $15 plus tax
Email acesjewelryandloan@hotmail.com if you need us to do a transfer!
Or call 626-968-5900
Gun transfers 10am-5pm 7 days a week!
We are an NFA firearms dealer!

Follow us on Facebook @acesjewelryandloan Need Cash Fast? Get a loan on your firearms here!
Tons of new handguns! New Aero Receivers in stock soon!
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  #18  
Old 08-14-2019, 11:49 AM
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Originally Posted by acespawnshop View Post
When I ask again in 2026 donít hold it against me.
:-)

It will be the same then as it is today, plus I forget that I said it to you anyhow.
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Old 08-15-2019, 5:21 PM
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I just have to throw this out there but how are you obligated to charge sales tax when
1. you are not the reseller of the firearm.
2. your tax ID was not used for record that you will carry down the tax to the purchaser.

if you are only the middle man from the seller to the purchaser ?
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Old 08-15-2019, 7:12 PM
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Quote:
Originally Posted by mmaaka View Post
I just have to throw this out there but how are you obligated to charge sales tax when
1. you are not the reseller of the firearm.
2. your tax ID was not used for record that you will carry down the tax to the purchaser.

if you are only the middle man from the seller to the purchaser ?
California considers the delivering FFL to be the transfer agent, and thus responsible for paying sales tax. California law allows for retailers to seek reimbursement of said tax from the buyer. So, while they donít ďhaveĒ to charge it, they are responsible for paying for it.
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Old 08-16-2019, 8:26 AM
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What he said...^^^
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Old 08-16-2019, 8:30 AM
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To be a bit more specific, if the out of state seller, either a business or a private party, isn't a CA retailer, then CA considers the CA FFL transfer dealer to be the retailer and the one responsible for submitting the sales tax. The CA FFL transfer dealer is an easy target for CA since they are a CA business. As said, the CA FFL transfer dealer isn't required to collect the money, just submit the money, but since they are a business and are supposed to make money, they tend to have to collect the money.

There is no requirement that your reseller permit be used for out of state sellers. That is a CA thing.

You could say that it isn't right and all that, which is true, but convince the government of that. If you have a ton of cash, then you could sue and see if you can get it corrected, but even that is unlikely. Look at the recent SC case where is was said that a state could force an out of state seller to collect the sales tax for them. Their only crime was to ship products using a common carrier to that state. To me, the sales tax should be based on where the item was sold, not where it was delivered to.
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