Tax Question

[CTT2]

So basically collecting a "Use tax" is a crock of ********.

So how is the dealer suppose to know the value of the rifle and apply the sales tax? What if the rifle is used, is receiving dealer now suppose to appraise it? Basically I buy it out of state, have the shipping dealer put a reciept for $1. Then California gets their .08 cents. Or how about have no reciept at all.

[Hunter]

The repsonsibility of paying use tax rest on the person involved in the actual sales transaction. If a resident of CA buys a gun from out of state, either the seller or the buyer is required to pay use tax. Since just about no one outside CA will collect use tax for CA, the actual buyer is the one resposible. Now the key in determination of the buyer /seller is who handles the money. Therefore, if the buyer sends all funds to the out of state seller, then AFTER the transaction is completed, has the gun shipped to an in-state FFL dealer for TRANSFER ONLY. The buyer is the one responsible for reporting the use tax, not the receiving FFL dealer. The receiving ffl dealer only deals with the transfer and the money associated with that transaction. Now if the receiving dealer is the one who actually sends the money to the out of state seller, then YES the FFl needs to charge sales tax on the final sale to a CA resident.

There is no way a transfer dealer can prove that the buyer had not already paid taxes (CA or out of state) or had actually used the firearm out of state prior to shipping (after 90 days) or had actually owned the firearm and was just having it stored out of state and now required it to be shipped, (all of these would be exempt from any further use tax), or ect.... Bottomline it that there are a lot of exceptions and circumstances where a dealer could not legally collect use tax. And for the dealer to know when and when not to collect the tax is near impossible. Bottom line is that the buyer is responsible for insuring the proper taxes are paid, not the dealer, unless the dealer was involved in the original sale.

Everyone files a 540 tax return in this state (or nearly everyone should!) and each and everytime they have the opportunity to pay their "use tax" for purchased made on out of state goods for that tax year. If they don't, and it is proven that it was owed, it is the tax payer who is in trouble. Not the ffl dealer.

[halifax]

I received a ruling from SBOE about 10 years ago regarding this issue since most of my business has been out of area transfers. Unless the gun comes from within the state (sales tax paid for once), all FFL dealers must collect "USE TAX" that is the same as "SALES TAX" of their area.
DO not confuse this tax with "STATE INCOME TAXES". State Board of Equalization is a different entity than the Franchise Tax Board.

Yes, FFL dealer must charge "USE TAX" for any item that comes into CA. Otherwise you risk being shut down, taxed, penalized and basically your assest are frozen! That's how some of the local dealer here have been shut down.

So yes, I received an SBOE ruling and clearly states that the firearms must be paid taxes for just like if you bought it at a local gun store. They call is "purchases from outside vendors" PDF publication 114.

http://www.boe.ca.gov/pdf/pub112.pdf

So next time don't bash a dealer - after all we are the working slaves of this state !

This publication states that the buyer is liable for paying taxes, not the dealer. Unless the dealer is mailing the check, I don't see how that publication applies.

[TonyNorCal]

As the others have said it's mixed...some do, some don't...call around and see.

I think that if I were an FFL and there was some indication that it was required (as apparently there is) then I would.

Why? Not to make life hard on the customer or piss people off...but as an FFL would you want to state coming to you and requesting taxes you never collected? Good luck going after a customer you transferred a gun for 6 months ago and trying to collect the tax now.

You'd likely be on the hook for the money.

[SemiAutoSam]

OK Boys heres a real simple question that just about anyone can answer or at least you could answer.

Reguarding TAX and im talking about income tax state or federal.

Why do you pay tax ? I suppose I could put up a poll with the most likely answers.

SO Please just answer the question as briefly as you can.

Yes im just trying to get into peoples heads a little here as to your mentality reguarding this area.

Thanks