Sales tax on out-of-state transfer?

[scoob_i_e]

Two questions:

1. Sales tax still applies to a purchase I make out-of-state, correct?
(Whomever I might make the purchase from, receives the tax?)


2. However, if I transfer a firearm to an FFL and the FFL tells me I have to give him/her sales tax on a firearm I haven't even purchased from him/her then they're trying to cheat me, correct?

[DRM6000]

the out-of-state vendor is not obilgated to collect tax for his state.

however, the receiving dealer here in ca is obligated to collect a use tax for ca.

[scoob_i_e]

Looks like I had it mostly wrong.

So, no on question 1.

Out-of-state dealer I purchase from does not collect state sales tax from someone living in an entirely different state.


And, kind-of yes on question 2.

FFL does not collect sales tax on the sale of the firearm but instead a use-tax? (For using his services as an FFL, I'm assuming?)

[scoob_i_e]

What's the rate on the use-tax? Is it based on the fee the FFL charges for the transfer? So for instance, $75 transfer fee at 8 % sales tax = $6?

Lest you couldn't already tell I'm ignorant on the issue altogether.

[DRM6000]

FFL does not collect sales tax on the sale of the firearm but instead a use-tax? (For using his services as an FFL, I'm assuming?)

the ffl is to collect a use based upon the cost or value of the firearm. an easy way to think about is as if you bought it from your ffl. i don't know what the tax rate is based on. i'm guessing it's the rate where the ffl is located.

do a search for the subject since it's been covered to death. you'll find more info than you ever wanted to know on the subject.

[Millions-Knives]

Yes, this has been covered before. Check out the FFL forum for details on FFL's collecting tax or buyers reporting USE tax.

[tenpercentfirearms]

Retailers do not collect use tax. They collect sales tax.

The BOE considers me the retailer if I deliver the firearm. Yes it is stupid, but they want their money and there is some vague code the provides for it.

So basically, if I deliever a firearm to you and it is from another retailer out of state, I must collect sales tax on the entire purchase price of the firearm. So they cost you paid and the transfer fee are taxable. If shipping is itemized from the shipper, that is not taxable.

Yes, there are many threads on this.

http://www.calguns.net/calgunforum/showthread.php?t=173782&highlight=boe+retail

I would like to see a dealer who is going to go through the time and energy to claim they are taking sales tax and then go back and change their receipts and keep the sales tax. People are always claiming that is what dealer's do, but I would like to see it. That is highly illegal, takes a lot of effort, and I would rather just charge you $100 for a transfer and make my money legit than try and steal your $60 in sales tax. That is just me.