Pay CA Tax On Consignment Gun?

[NRAhighpowershooter]

OK.. a buddy of mine asked me this and I wasn't 100% on the answer... does one pay sales tax on a consignment gun? I say no because gun belongs to owner but is being sold by shop in owners name.... correct?? or??

[a1c]

Well I am no tax expert here, so take my opinion with a grain of salt, but the fact that it belongs to the owner (redundant, I know) is irrelevant: in theory, by CA law, you're supposed to pay sales tax (including on what you order from out-of-state, for instance).

[joelogic]

I asked my local FFL and he said, "of course you pay tax".

[dirtyJ]

If the gun is sold in a brick and mortar store with a presence inside of CA the BOE wants it's cut.

[jbolton]

I never paid taxes on a ppt.

[Synergy]

I recall being at a LGS and seeing the consignment gun description with price and saying "no tax"

[ETD1010]

a ppt won't cost you tax money, but a consignment gun that is IN my inventory as an item for sale must collect sales tax. If it's a straight PPT, I never sold anything.

[Echidin]

I asked my local FFL and he said, "of course you pay tax".

Got a similar response when I asked as well. Gave me a look like, "why the hell wouldn't you pay sales tax on a consignment gun?"

[forgiven]

I've paid tax on every consignment gun I've bought. That's the beauty of the ppt.

[mjsweims]

I've paid tax on every consignment gun I've bought. That's the beauty of the ppt.

Same here.

[Rob454]

I never paid taxes on a ppt.

A consignment sale is not a PPT. It sort of is but the salesman is the store NOT the owner of the gun. From what I understand the gun is on the FFLs books so they can be the legal "owner/transferee" of the gun and since the price you pay the shop gets a percentage yeah you gotta pay tax.
Its IMO no different than them buying the gun from the owner and now selling it to you. Except they basically pay the owner after the gun is sold.
So yeah there will be sales tax.

On a PPT the dealer is simply the middleman as far as the gun transfer paperwork. the seller and buyer meet and sell. No different than selling a washer and dryer really

[Hunter158]

Wouldn't be surprised... Have never bought one on consignment here in CA so have no experience.

OTOH, there are differing opinions on whether the $25.00 DROS it taxable too!!!

[Nylo]

What have we learned here...

Never put a gun on consignment! Its hard enough selling firearms these days so save your buyer the pain of tax. And, if you want to take your gun out of consignment you'll have to pay the dros fees to get it out of his books!

My two cents,
Nylo