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Out of state FFL gun sale tax?

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  • Sure Shot 45
    CGN/CGSSA Contributor - Lifetime
    CGN Contributor - Lifetime
    • Dec 2009
    • 1217

    Out of state FFL gun sale tax?

    A firearm is purchased online from an out of state FFL dealer who does not charge tax at the time of sale. The firearm is shipped to a local FFL here in CA. The local FFL refuses to collect tax during the transfer, only DROS/transfer fees. The buyer asks the local FFL about the tax and is told "We only charge transfer/DROS and do not collect tax that's the dealers responsibility". The buyer waits 10 days and picks up the firearm.

    Who is responsible for the tax this point?

    Asking for a friend.
  • #2
    Bastard
    • Jul 2009
    • 2209

    if I'm not mistaken the CA FFL was supposed to collect - now if the buyer payed tax at the the originating FFL at the local rates there then that amount should have been subtracted from the local CA rates... but since neither one collected, I would say that you, err I mean your friend, just saved some money

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    • #3
      benjamin101677
      CGN/CGSSA Contributor
      CGN Contributor
      • Jul 2012
      • 1049

      Happens a lot of shops; your friend saved money. The city or county would go after the ffl dealer and not your friend.

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      • #4
        Quiet
        retired Goon
        • Mar 2007
        • 30241

        Originally posted by Sure Shot 45
        A firearm is purchased online from an out of state FFL dealer who does not charge tax at the time of sale. The firearm is shipped to a local FFL here in CA. The local FFL refuses to collect tax during the transfer, only DROS/transfer fees. The buyer asks the local FFL about the tax and is told "We only charge transfer/DROS and do not collect tax that's the dealers responsibility". The buyer waits 10 days and picks up the firearm.

        Who is responsible for the tax this point?

        Asking for a friend.
        Legally...
        Since, both, the out-of-state vendor and the CA vendor did not collect CA sales/use tax on it, the buyer is now resposible for paying taxes on it by declaring it when they file their CA income tax.


        Technically, under CA tax laws/regulations...
        Buyer must report when filing CA income tax, all items that were bought from an out-of-state vendor/seller with the intent to use in CA and no CA taxes was collected on that item.
        However, this will only come up if the CA FTB or IRS audits the buyer.
        Last edited by Quiet; 11-18-2020, 7:22 PM.
        sigpic

        "If someone has a gun and is trying to kill you, it would be reasonable to shoot back with your own gun." - Dalai Lama (Seattle Times, 05-15-2001).

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        • #5
          Sure Shot 45
          CGN/CGSSA Contributor - Lifetime
          CGN Contributor - Lifetime
          • Dec 2009
          • 1217

          Thank you for the replies fellas!

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