CA TAX?

[bwiese]

Any FFL not charging sales tax on ordered guns is stupid and will go broke quickly.

[Artema]

Any FFL not charging sales tax on ordered guns is stupid and will go broke quickly.

Tax goes to the state, not to the FFL.

[cosmos7]

Right but the FFL has to pay the tax on those transfers, whether he collects it or not...

[Artema]

Right but the FFL has to pay the tax on those transfers, whether he collects it or not...

Apparently not. There are FFL who do not do the tax thing. And no, I'm not going to say.

[HotnHere]

Apparently not. There are FFL who do not do the tax thing. And no, I'm not going to say.

exactly... my friend... exactly

[kemasa]

Your CA FFL will collect CA sales taxes on your purchase. If it is a new gun, the FFL will collect sales tax.

It makes no difference if the firearm is new or used, the FFL is required to pay the sales tax on the total amount that it costs to get it to do the FFL. The FFL is not required to make the customer paid, but the FFL has to pay the state.

There are some limited exceptions, such as if it is a C&R handgun from a private party, which is an occasional sale and the buyer has a C&R FFL. Also, if the firearm comes from a private party in CA and it is an occasional sale.

Any FFL who does not collect and submit the sales tax is a fool since it is likely that sooner or later the BOE will notice them and then they will owe a lot of money. While customers might like a FFL who does not collect the sales tax, in the long term those FFLs will cease to exist and that won't be good.

[kemasa]

My FFL told me he collects tax on used guns, in-state purchase. That just doesn't seem right.

That is not correct IF the seller is a private party, it is an occasional sale and the FFL does not get involved in finding the buyer/seller and does not get involved in the price.

[kemasa]

Your California FFL may or may NOT charge you use tax/sales tax. It is better to have asked beforehand. The number of California FFLs not charging tax is dwindling down. I just hope they are submitting these taxes and not pocketing it

A FFL is required to pay the money, it is the law, until a court says otherwise. If you find a FFL who does not collect the sales tax, then you have found a FFL who is violating the law.

The worst thing that a CA business can do is to collect the sales tax and not turn it over to the state. No collecting it is bad, but the state gets very annoyed if you collect it and don't give it to them. If the business collects too much money for a transaction, the business has to either refund the money or send it to the state. Keeping is a bad thing.

[Artema]

A FFL is required to pay the money, it is the law, until a court says otherwise. If you find a FFL who does not collect the sales tax, then you have found a FFL who is violating the law.

The other day I was driving into town, the speed limit was 65 and I crept over 66 while going down a hill.

[kemasa]

The other day I was driving into town, the speed limit was 65 and I crept over 66 while going down a hill.

A cop is not going to give you a ticket for that, but see what the BOE does if the FFL collects $1 and does not submit it or does not collect the tax. It is far more serious.

Either the FFL is clueless or it is intentional, neither speaks well of them. A FFL who puts their business and freedom at risk when they get nothing (only the customer saves money) is not someone who you might want to do business with, but that is your choice and for some people saving a few dollars is worth the risk.

[Artema]

Either the FFL is clueless or it is intentional, neither speaks well of them. A FFL who puts their business and freedom at risk when they get nothing (only the customer saves money) is not someone who you might want to do business with, but that is your choice and for some people saving a few dollars is worth the risk.

Your presumptions are amusing, but at least you're right without knowing any of the information. Must be amazing.

[SMR510]

I did a transfer a while back at a new local FFL run out of the guys house. Long story short, he was not originally aware that he was required to collect tax on out of state purchases and at the end of the year when he went to balance his books he found out that he was on the hook for all the money he failed to collect. Luckily he had only been at it for 6 months at the time and since he was that new he didn't have very much business so it didn't put him out of business.

FFL's who aren't collecting sales tax are going to be in a world of hurt...With the extra scrutiny they are under in CA it is likely they will be found out sooner rather than later.

[kemasa]

Your presumptions are amusing, but at least you're right without knowing any of the information. Must be amazing.

That is funny. I know what the law is regarding this and it seems that either you don't know or you don't care because you want to save some money without regard to what it means. Anyone who is in business should know the laws that affect them. So you are completely wrong about my not knowing any of the information, but I guess you want to claim to be right even when you are wrong.

The CA BOE sent out a letter to all CA FFLs, so there is no reason why a FFL would not be aware of it unless they failed to read and understand the letter.

So, please explain why you think that a CA FFL would not be clueless or intentionally violating the law. Also explain why someone have to know anything more than what the law is in this case to make statements about those who violate the law by not collecting the sales tax.

Personally, I hate the laws regarding sales tax and it is bad to put the FFL in the middle of it. I was told by the CA BOE that if they find out that the FFL collects the wrong amount due to a bogus receipt, even if the FFL did not have a clue that it was bogus, the FFL still owes the money. Then there is the issue with the penny auctions, as well as the CA FFL who sells a firearm to a CA resident and ships the firearm to a CA transfer FFL who is supposed to collect the sales tax on the transfer fee charged by the other FFL.

Are you aware of any of this? Or is all you care about is not paying the sales tax and making snide remarks when the law is pointed out to you?

[Artema]

That is funny. I know what the law is regarding this and it seems that either you don't know or you don't care because you want to save some money without regard to what it means. Anyone who is in business should know the laws that affect them. So you are completely wrong about my not knowing any of the information, but I guess you want to claim to be right even when you are wrong.

The CA BOE sent out a letter to all CA FFLs, so there is no reason why a FFL would not be aware of it unless they failed to read and understand the letter.

So, please explain why you think that a CA FFL would not be clueless or intentionally violating the law. Also explain why someone have to know anything more than what the law is in this case to make statements about those who violate the law by not collecting the sales tax.

Personally, I hate the laws regarding sales tax and it is bad to put the FFL in the middle of it. I was told by the CA BOE that if they find out that the FFL collects the wrong amount due to a bogus receipt, even if the FFL did not have a clue that it was bogus, the FFL still owes the money. Then there is the issue with the penny auctions, as well as the CA FFL who sells a firearm to a CA resident and ships the firearm to a CA transfer FFL who is supposed to collect the sales tax on the transfer fee charged by the other FFL.

Are you aware of any of this? Or is all you care about is not paying the sales tax and making snide remarks when the law is pointed out to you?

I am aware, but you are not aware of other information.

[kemasa]

I did a transfer a while back at a new local FFL run out of the guys house. Long story short, he was not originally aware that he was required to collect tax on out of state purchases and at the end of the year when he went to balance his books he found out that he was on the hook for all the money he failed to collect. Luckily he had only been at it for 6 months at the time and since he was that new he didn't have very much business so it didn't put him out of business.

I have heard of a FFL who had been in business for a long time and had not been collecting the sales tax. It did not put him out of business, it seems now he is just working for the state. Going out of business would not mean that the FFL would not have to pay the money. I think that the only way to not pay the money is to go to jail.

FFL's who aren't collecting sales tax are going to be in a world of hurt...With the extra scrutiny they are under in CA it is likely they will be found out sooner rather than later.

Yes, it is a gamble and with the money issues in the state, it is likely that the person could get caught. I have seen notices that the BOE is going around to businesses, but I have not heard of anyone getting a visit, so it could just be a threat.