DROS Question

[Standard]

I bought a handgun from a guy out of state. He shipped it to my FFL who has great prices, so I always use him.
Being that it was a PPT, I thought it would be the normal $35 charge (it's not from a dealer). But since he's out of state, the FFL said he can't do it as a PPT, and that now I have to pay the $50 charge (instead of $35) and an additional nearly $50 in tax...does this sound right? Why am I paying tax on an out of state purchase?
I'm not going to say the FFLs name, because he is a great guy to deal with and I don't want it to sound like I'm bashing him. I just want to make sure this is right. I was expecting $35 in fees and I'm going to end up paying $100.

[ivanimal]

100 is fair. PPT's @ 35 only count for face to face transfers. He can charge what he wants to receive a gun from out of state.

[Mike's Custom]

No such thing as a PPT from out side the state. Only PPT can happen between CA residents. All others are dealer sales. Dealer sales are taxable.

[Dr Rockso]

The tax thing is an iffy situation. Basically anything that you buy out of state, YOU are responsible for paying the tax on (use tax). Now almost nobody actually knows or cares about the use tax, but the state has told some FFLs that they are responsible for collecting that tax on out of state transfers. Should they have to do it? I don't think so, but nobody is going to fight the state over it.

[k1dude]

I would be upset about the tax. Your FFL isn't a reseller marking up inventory. He's performing a transfer pure and simple. If he's going to charge you tax at all, it should only be on his $35 fee since it's a service he's providing. But even that can be argued. There are plenty of other FFL's that won't ding you like that.

[forgiven]

It is amazing how much it cost to have a FFL receive a gun from out of state here in CA. In AZ my dealers charge $25.

[Josh3239]

I have noticed that. California dealers get away with charging atleast $75 OTD and out of state dealers charge much cheaper. I would guess that between all the regulations here that make getting somethings harder and the dealers can hide behind the "extra paperwork and time" thing they can get away with charging that much.

[cgseanp1]

I have noticed that. California dealers get away with charging atleast $75 OTD and out of state dealers charge much cheaper. I would guess that between all the regulations here that make getting somethings harder and the dealers can hide behind the "extra paperwork and time" thing they can get away with charging that much.

There are plenty of dealers that don't charge that much, around $35 or so.. But when you ad in all the fees, it gets crazy.

[CaliforniaLiberal]

He's better than most FFLs. Many will charge $100 or $125 just for the transfer fee - not counting paperwork or possibly taxes.

[Standard]

He's better than most FFLs. Many will charge $100 or $125 just for the transfer fee - not counting paperwork or possibly taxes.

I understand and I agree 100% - that's why I use him!
I was just curious about this particular transaction and if it was normal.

[pingpong]

$100 is pretty standard (though a tad high compared to what I'm used to). I know of at least 3 places that'll do it for $65 around here...

[Quiet]

AFAIK...
Currently, CA BOE is forcing FFL dealers to collect a "use tax" on out-of-state transfers. Because the item you are transfering into CA, is going to be "used" in CA.
If the FFL dealer does not collect the tax, CA BOE expects you to pay it when you do your taxes at the end of the year.

[halifax]

AFAIK...
Currently, CA DOJ/tax board is forcing FFL dealers to collect a "use tax" on out-of-state transfers. Because the item you are transfering into CA, is going to be "used" in CA.
If the FFL dealer does not collect the tax, CA tax board expects you to pay it when you do your taxes at the end of the year.

Not quite. The BOE expects the dealer to pay it:

495.0843 Deliveries by California Firearm Dealers for Out-of-State Retailers. California residents order firearms from out-of-state retailers and the retailers ship the firearms to an authorized California firearm dealer for delivery to the customer. The California firearm dealer charges a fee to register each firearm in California.

When the California firearm dealer completes the registration paperwork and delivers a firearm to a California purchaser for an out-of-state retailer not registered with the Board as a retailer engaged in business in this state, it is presumed that the firearm dealer is the retailer of the firearm under the second paragraph of section 6007. In such a case, the firearm dealer would owe sales tax on the total amount of the retail sales price of the gun to the customer

[Quiet]

I knew it was some CA gov agency. Thanks for the correction.

[Mike's Custom]

I have been told that as long as it is a Dealer Sale on the DROS it is taxable. There are no "out of state transfers" in CA since transfers can only take place between CA residents. That makes it pretty simple to me.

One reason "transfers" are cheaper outside CA is they do not have to do anywhere near the paperwork and record keeping that we have to do. We also have to hold the firearm for days and the liablilty in CA is much higher then most other states. We have to deal with both the FEDs and the DOJ while other states just deal with the FEDs and each one has different things we MUST do. If you look at most business that have hourly rates you will see most of them are atleast $75 or more per hour. And in Ca it takes a hour or more for the process. It actually takes a little more time to do DTs then just ordering a firearm from a wholesaler. FFL dealers should be able to make a decent hourly wage on PPTs but the state limits us to $10 and htat isn't even minimum wage for the time spent. Just with all the copies we have to make and provide both parties it costs us a few bucks.