ffl's charging taxes on transfers??

[Biff...]

Someone explain to me how an ffl can charge tax on a transfer from out of state. I thought taxes were paid on purchases made in state, and I was responsible to report/pay taxes on out of state purchases. I'm confused

[Travis]

I think *technically*, you are buying the gun from the local FFL. I thought there was a paper trail of the CA FFL buying the gun from the out of state FFL. I'm sure someone here that knows for sure will chime in...

[Biff...]

Well I'm buying the gun from Florida, paying for it in Floridia and the dealer there is shipping it to an FFL dealer here that wanted to charge me taxes(ofcourse I'm not using the fffl) but still wanted to know if this practice is legit.

[Hunter]

..still wanted to know if this practice is legit.

Nope, it is up to you to report the puchase on your 540 at tax time, it is not the FFL's responsibility or right to collect tax on money he never handled. The ffl is only doing a transfer. Problem is that the board of equilization has been giving out incorrect info to some dealers on what taxes to charge or not.

[Biff...]

Nope, it is up to you to report the puchase on your 540 at tax time, it is not the FFL's responsibility or right to collect tax on money he never handled. The ffl is only doing a transfer. Problem is that the board of equilization has been giving out incorrect info to some dealers on what taxes to charge or not.

Thats what I thought, it's my responsiblity not the ffl's.

[pnkssbtz]

Its only "legit" if the FFL is actually paying that money denoted as tax to the state BoE. Otherwise the FFL is stealing money from the state BoE.

Any money he collects for the state (taxes) is property of the state. Any money he bills FOR the state, but is unable to collect, he still owes to the state. (So if he bills someone for a product but the customer never picks up the product and he manufactured it, he owes the state the tax for the product, even though no one paid for it...)


If the FFL is charging you tax so he can make some money (the amount being the tax) then no it is not legit.

If he is charging you tax on the full price of the gun, then also this is not legit, since he is not charging you tax based upon his billable amount. He can only charge tax for what he puts down on the receipt as the cost of the invoice.

The cost for the item has already been resolved between you and your party in FL. So he can charge only tax for any goods or services he provides.

It is your responsibility as the buyer to pay the state for the tax incurred on the transaction between you and the seller in Florida. Other than the DROS, the FFL has nothing whatsoever to do with that transaction.

[VeryCoolCat]

Some FFLs I heard are doing this because the California Equilization Office is telling em to.

Then.... its also based on "How much you tell them you paid for the gun"

"OH I paid $50 for this REMINGTON PSS New In Box"

[pnkssbtz]

Some FFLs I heard are doing this because the California Equilization Office is telling em to.

Then.... its also based on "How much you tell them you paid for the gun"

"OH I paid $50 for this REMINGTON PSS New In Box"

Who at the BoE is telling them this?



At my work, I had to do research into sales and use tax specifically for parts of manufactured goods.

The kicker is that normally, printed material is not considered "part" of a manufactured good, even if it is inserted in the product box unless it was an instruction, or the box itself.


I had a client who ordered 75,000 DVD wraps (The paper that gets inserted between the vinyl and the plastic case with the image and stuff).

I figured I would just email the CA BoE. I got a response that didn't say yes or no, but instead referenced a Sales and Use Tax Code... which I looked up and had to do with tax exemption for trucks crossing state lines...

So I emailed them again and got another answer citing two different conflicting codes: one saying that parts of manufactured goods and packaging components necessary to the product are exempt, and another saying that unless it is an instruction or the packaging itself it is not exempt.

The third time I emailed them, asking about the first two responses I got a third response citing a code telling me if I deliver the product to a bonded courier or mailing house it is tax exempt.


Lastly, we got audited (we get audited every year. Random my ***...) and I asked the auditor and she and I spent 3 days reading through the CA BoE crap and came to the conclusion that CD and DVD packaging material that describes the product is considered instructions and thus exempt.


My conclusion: the CA BoE woudln't be able to find its collective *** even if the entire California Fire Department, Search and Rescue and National Guard assisted it in the endeaver.

[mltrading]

If you have paid to the out of state seller then use local FFL to DROS, the local FFL can only collect sales tax on the services he provided (such as DROS and mark-up).

Just wondering how does the local FFL know the transaction amount between you and the out of state seller.

However, it's your responsibility to declare this out of state purchase and pay sales/use tax with your annual tax return.

[E Pluribus Unum]

BOE has ruled that FFLs collect sales tax on gun transfers because the gun owner is taking legal posession of the gun in California. Any other merchandise is legally yours as soon as you pay for it.

If you say something obvious bullcrap ($50 for a $300 rifle) they charge you sales tax on the "fair market value".


Its BS... but its happening...

[Biff...]

BOE has ruled that FFLs collect sales tax on gun transfers because the gun owner is taking legal posession of the gun in California. Any other merchandise is legally yours as soon as you pay for it.

If you say something obvious bullcrap ($50 for a $300 rifle) they charge you sales tax on the "fair market value".


Its BS... but its happening...

But it thats the case all ffl's should collect taxes not just a few.

[GUN FREAK]

FFL Dealers are just pissed they cant compete with Shot Gun News or Gun Broker.com Thats why i dont use FFL Dealers how do that. They just want more money $$$$. Greedy Bastards.

[E Pluribus Unum]

But it thats the case all ffl's should collect taxes not just a few.

They all are required to.... the ones that are not collecting it will eventually get audited and they will have to pay all the back taxes they failed to collect.

They will get majorly boned.... you do not mess with the franchise tax board.

The bad part is the gun store has no authority to go after the clients for the tax owed.... they become responsible for it.

[E Pluribus Unum]

FFL Dealers are just pissed they cant compete with Shot Gun News or Gun Broker.com Thats why i dont use FFL Dealers how do that. They just want more money $$$$. Greedy Bastards.

You have 5 posts.... let me give you a bit of advise to reserve judgement on people until you have been around more than 3 days....


especially considering one of the posters in this topic is one of the "greedy bastards" you speak of...


... oh yeah... he is well-respected too.... I think he has a thing for the janitor.

[Trader Jack]

You have 5 posts.... let me give you a bit of advise to reserve judgement on people until you have been around more than 3 days....


especially considering one of the posters in this topic is one of the "greedy bastards" you speak of...


... oh yeah... he is well-respected too.... I think he has a thing for the janitor.

E Pluribus Unum. You are one of the very few posters on this board who has his\her head screwed on correctly.
Guys\Gals such as gun freak have head up there *** and could not screw it on because they could not find it with a mirror and a Surefire flashlight..