California tax question

[GentleMinh]

can i be tax on labor? i'm getting a fire arm built from a kit. would i be tax on the labor portion? if the invoice says 995.00 for labor. btw this rifle is coming from another state . thanks

[hermosabeach]

I really don't understand the question.

Are you asking if you need to pay CA sales tax on a firearm purchased out of state?

Or are you inquiring about CA income tax on labor working out of state?

[GentleMinh]

my question was could my FFL charge me the tax on the labor? i bought a mp5 clone from a well known clone builder. On my invoice the price break down is:
parts kits 1799.00 , labor 995.00 , and shipping 40.00. could my FFL tax me for the labor cost that the clone builder charged me for the build of the mp5?

[jpscoot_21]

I'd think an invoice for a service is what the total is going to be. I would only have second thoughts if the service was done in California, where the tax is 10-11% on top.

[jpscoot_21]

Oh.. I see. No, the Cali FFL should not charge tax for a svc performed by someone else.

[Stewdabaker23]

There should be no tax on labor.

[Stewdabaker23]

Tax would only be on the $1799.

[hermosabeach]

I do not know the answer.

The basis for tax would seem to be on the final product.
Most everything we buy retail include labor and shipping.

Bad example- when you buy a potatoe - the cost includes everything - cost of plant- labor to pick- water to grow- shipping to market- profit to everyone.

If the builder charged you on different invoices- 1 for the kit, 1 for the build and shipping.....

[GentleMinh]

Thanks for the replies.. I also think there shouldn't be tax on labor. I guess it depends on how the invoice is written up . I just hope my FFL won't charge the tax on labor.

[ar15barrels]

The answer is that the FFL will charge you tax on the purchase price of the gun.
If the invoice lists parts and labor separate, they will likely tax it all.

Get the seller to include a receipt for only the parts price if you only think you need to pay tax on the parts cost.

However, trying to evade the tax on he labor would be like trying to go buy a car and have the dealer only report the parts cost to the state instead of the price you paid for the whole car.
Good luck with that...

[mjsweims]

They should (according to the BOE) charge tax on the finished product - that includes tax on the labor to assemble. The way to avoid assembly labor is to do it yourself.

[SVT-40]

When you buy a vehicle which is produced out of Calif you pay tax on the entire vehicle, including "labor" to produce the vehicle...

So why should a gun be any different...

Tax should be on the total sales price....