FFL charging tax on the firearms?

[khw9mm]

I'm not really venting or anything but just wanted to hear your guys' opinions and thoughts.

I bought a rifle thru an out-of-state reputable online dealer. Did some price comparison and went for it since it was pretty much the best deal around - considering transfer, DROS and shipping fees. But then when I checked with the receiving FFL dealer in CA, I realized he's now charging tax on the firearm itself PLUS the transfer and DROS fees.

I read somewhere on another thread that it's the way it's supposed to be, is that correct?? Are all CA dealers doing that?

If that's the case, I much rather have given the business to a CA dealer and just purchase it locally...too bad the online dealer asked for a 10% re-stocking fee (even only a few hours after I ordered) Lesson learned - buy local, support CA business (even if you have to pay tax)

Your thoughts??

[damndave]

More and more CA FFLs are doing it now. They are legally supposed to charge the Use Tax of your firearm coming in. I personally just find one that doesn't do it.

[Synergy]

This got brought up a few weeks back. I have been given conflicting info. Some charge some dont. Taxing at DROS seems like the state just wants more money. How does the state FTB know the firearm came from in or out of state? So what next... DROS for computers, so the state can get sales tax for computers bought online, shipped direct?

[ZirconJohn]

This got brought up a few weeks back. I have been given conflicting info. Some charge some dont. Taxing at DROS seems like the state just wants more money. How does the state FTB know the firearm came from in or out of state? So what next... DROS for computers, so the state can get sales tax for computers bought online, shipped direct?

Yup... here it is, oh and BTW... NO flashing red light, I hate that thing!

The thread you mention is here; Have you paid CA tax on DROS?

I HATE the BOE... I don't hate anyone, or any one thing... but the BOE?

I HATE the BOE..., oh, and that flashing red light... I hate that thing!!!

[jamesob]

this has been asked i think around 5000 times since the begining of the year.

[ZirconJohn]

this has been asked i think around 5000 times since the begining of the year.

Yup... and will get asked again.

It's okay... we just answer the question again.

It's simple...,

Additionally, really appreciate the NO flashings lights, that thing is just rude... thank you

[C.W.M.V.]

Mine doesn't. He said he heard hes supposed to but until someone tells him to start hes not going to.

[ZirconJohn]

Mine doesn't. He said he heard hes supposed to but until someone tells him to start hes not going to.

Well... then he has to enter $00.00 on the quarterly statement of Sales and Use Tax Electronic Filing. In a sense... BOE telling him, it's line #13 'Sales and Use Tax Due'... OH, I wonder WHY - Line 13, BAD luck number!!! - Ahhhhh-geeze, gettin' MAD again!

It's none of my business to say anything about your dealer... he just gotta do what he gotta do.

I'm out.

[khw9mm]

The reason I ask is that I just made a transfer to the same exact FFL for another firearm less than 2 months ago, then I check on their site today and everything has changed...it's like WTF??

Jamesob, it's not about how many times this has been asking since the beginning of the year but how come only NOW so many FFL's are staring to charge tax. And for the many of us who have bought from out of state in the previous years, are "they" gonna come to us for back taxes not paid???

Like Zircon said....Hate them BOEs!!!

[halifax]

The reason I ask is that I just made a transfer to the same exact FFL for another firearm less than 2 months ago, then I check on their site today and everything has changed...it's like WTF??

Jamesob, it's not about how many times this has been asking since the beginning of the year but how come only NOW so many FFL's are staring to charge tax. And for the many of us who have bought from out of state in the previous years, are "they" gonna come to us for back taxes not paid???

Like Zircon said....Hate them BOEs!!!

CGN can (and should) be praised for opening up CA to great communication between gun owners, LEOs, legal eagles, and dealers. Members have worked very hard to scrutinize and clarify the laws. Without the internet and CGN, most of us would still be in the dark ages on many legal issues. Praise on high to CGN.

With that communication came bad things too. Like who in their right mind would believe that a retailer would be responsible for the sales tax on tangible goods purchased out-of-state that the retailer didn't purchase himself and didn't sell from his inventory? Left alone, most dealers would conclude that the buyer was responsible for paying the Use Tax on those items. Why not, that is what the law says?

The BOE annotations that make the dealer responsible for the Sales Tax were pretty much unknown until CGN came along. Now, dealers are aware of it and realize if they ignore it, there is a real threat that they could get stuck with a huge tax bill and risk losing their business.

Just my theory.

[johnny_22]

Remember the paper trail.

In these tough budget times, the BOE may start working with the DOJ and find out who DROS'ed a firearm, and then see if sales tax is paid.

I alway send in the use tax for my purchases, using publication 79B, or on my 540 at the end of the year. Firearm's use tax gets sent in as soon as DROS is done.

[Toolbox X]

The BoE is going to dealers and telling them to their face they must collect the tax. BoE then threatens the dealer by explaining that technically the dealer is liable for all tax not collected since 1995, so the dealer better shut up and play ball.

Legally this is all nonsense. There is no law written down that covers this. A dealer is going to have to fight it through the proper channels. Personally I think it is a fantastic case for the CGF to back. I know many of us would gladly support it financially.

[Scratch705]

if this tax thing is going to make it so it is near impossible to purchase out of state, and have it on par with an instate item purchase financially.....

isn't that encroaching on restricting interstate commerce? since CA is effectively making it so all out of state businesses can't compete with in-state? and then what is to stop the other states from doing the same back to CA by putting extra "taxes/tariffs" on goods shipping out of CA?

[mjsweims]

if this tax thing is going to make it so it is near impossible to purchase out of state, and have it on par with an instate item purchase financially.....

isn't that encroaching on restricting interstate commerce? since CA is effectively making it so all out of state businesses can't compete with in-state? and then what is to stop the other states from doing the same back to CA by putting extra "taxes/tariffs" on goods shipping out of CA?

If you buy anything out of state and do not pay sales tax on it you are supposed to declare it and pay use tax. Any internet purchase you make is subject to CA use tax. The state through BOE is trying to raise money any way they can. It doesn't surprise me that they are going to gun dealers and having them do their dirty work - it's probably because most firearm transactions from out of state have to go through the dealers and they are easy to trace. They are not encroaching on interstate commerce only applying an already existing tax.
If you buy a car out of state and bring it to CA you have to pay tax when you register it here, unless you have owned it for a time ( I forget the exact length of time) and paid the other state's sales tax.

[ARMUSA]

DROS fees are non-taxable. I specifically wrote to the BOE several years ago and was informed of this in writing. so you should not be paying tax on that.

Shipping charges in connection with a purchase of goods are taxable, as is the item itself. We gun dealers have enough to worry about without having to worry that we'll owe past taxes on someone else's out of state purchases, so it is best to collect those up front. The BOE guy who just visited us said that all items purchased and sent to CA should be listed, and taxes paid for, on your tax return.

The internet is invaluable - you can find things that are not locally available. Unfortunately, it's the local economy that suffers. This on top of ridiculous legislation is why you see more and more gun dealers closing up shop. Please do your best to support your local gun stores and if there should come a time that you need gunsmithing work done on your firearms, there might actually still be one around.

Jolynne