Retroactive Tax

[concord]

Hi. Is it legal for a gun store to charge extra in tax if the tax rate increased during the 10 day waiting period?

I bought a firearm late last month, put in the paperwork and paid in full. On April 1, the tax rates increased by 1%. When I picked up the gun a few days ago, I was charged almost $10 extra. The employee stated that the extra charge was because of tax increase and that it was applied after the 10 days. It seemed strange to me because I paid in full beforehand.

[alfred1222]

If you paid in full than you should be good, I wouldn't pay extra

[gotshotgun?]

If you paid in full then you should be good, I wouldn't pay extra

Agreed.

[roushstage2]

If that's how it works, I'm going to buy some big ticket items before a tax increase, and then return them after. Profit! In all seriousness, if you had already paid in full, you own nothing more.

[Steve_In_29]

Turners did this to me as well, paid in full for gun prior to the tax increase taking effect but they wouldn't release until I paid the additional tax. I knew it was illegal but they were busy as heck, I was in a hurry and it was less then a dollar so I just moved on.

This just reminded me of another incident. Bought and paid for a pistol from Turners booth at the Shooters Expo in Corona to be picked up at their SanBerdoo store. Ten days later I am told I have to pay the tax difference between Riverside and SanBerdoo county before I can pick up the pistol. Again it was only a few cents, so while irritated I blew it off.

[concord]

They would not have released the gun to me if I did not pay, so ended up paying. I still have the two receipts from the date of purchase and from the date of pick up showing different amounts.

The general consensus is that I should not pay, I was wondering if it was legal. Steve said he "knew it was illegal".

[ke6guj]

this comes up every year when the tax rates go up Jan 1, and I seem to recall a BoE letter explaining why the sale isn't final until you pick it up, and that the sales tax rate in effect at time of pick up is what counts.

[made2order]

this comes up every year when the tax rates go up Jan 1, and I seem to recall a BoE letter explaining why the sale isn't final until you pick it up, and that the sales tax rate in effect at time of pick up is what counts.

Can you show me this letter from the California State Board of Equalization? They never sent this information to me. Thank you.

[Fritz265]

this comes up every year when the tax rates go up Jan 1, and I seem to recall a BoE letter explaining why the sale isn't final until you pick it up, and that the sales tax rate in effect at time of pick up is what counts.

Bingo!

The sale isn't recorded until firearm is released so what they did was not only legal but expected.

[Tank 57]

Transaction is complete when you take possesion.Tax rate for that date applies.


Still sucks to give state more money.

[ke6guj]

Can you show me this letter from the California State Board of Equalization? They never sent this information to me. Thank you.

I said "seem to recall" because I wasn't sure if it was a letter. It appears that what I recalled was actually an FAQ.

My customer has already ordered items and has paid for them. My customer will take possession of the merchandise after the tax rate increases. What sales and use tax rate applies?

Generally, the applicable sales and use tax rate is the rate in effect when the merchandise is delivered to the customer, or the customer takes title of the merchandise. That means if the sales contract specifically identifies and passes title of the merchandise to the customer prior to delivery, or before the sales and use tax rate increase goes into effect, the lower rate applies. If you do not pass title of the merchandise to the customer prior to delivery, and you deliver the merchandise after the effective date of the sales and use tax rate increase, the higher tax rate applies.

http://www.boe.ca.gov/rateincrease/rate_increase_faq.htm

the issue then becomes, when does the customer take title to the merchandise? I would guess that title passes to you when you recertify the 4473 at time of pickup.