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There was a letter that was sent out at the end of 2011. There were two aspects to it. The first was to remind FFL that they are responsible for collecting sales tax and the second was actually a change in the view of the BOE with regards to sales tax for a private sale of a firearm where the seller is out of state.
Previously, the BOE had sent a response saying that an occasional sale of a firearm from an out of state private seller was not subject to sales tax. There is nothing in the CA BOE code which says that if the private sale involves an out of state party that it is suddenly subject to sales tax, so they BOE made that up, changing their view when the law had not changed, in order to get more money under the threat of the government.
The requirement that a FFL collect sales tax when the firearm comes from out of state from a business has existed for a long time, well past 12 years since it mentions 1999 (change regarding sales tax on the DROS fee). For some reason, many FFLs were not aware of this requirement.
If the firearm is subject to sales tax, then the FFL is also subject to sales tax. In the case of a CA retailer selling a firearm to a CA resident and then shipping it to another CA FFL, the CA retailer owes the sales tax on the CA transfer FFL's fee. This is something that many FFLs also don't know.
Previously, the BOE had sent a response saying that an occasional sale of a firearm from an out of state private seller was not subject to sales tax. There is nothing in the CA BOE code which says that if the private sale involves an out of state party that it is suddenly subject to sales tax, so they BOE made that up, changing their view when the law had not changed, in order to get more money under the threat of the government.
The requirement that a FFL collect sales tax when the firearm comes from out of state from a business has existed for a long time, well past 12 years since it mentions 1999 (change regarding sales tax on the DROS fee). For some reason, many FFLs were not aware of this requirement.
If the firearm is subject to sales tax, then the FFL is also subject to sales tax. In the case of a CA retailer selling a firearm to a CA resident and then shipping it to another CA FFL, the CA retailer owes the sales tax on the CA transfer FFL's fee. This is something that many FFLs also don't know.
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