FFL Tax for Internet Transfer is BS

[Flux Capacitor]

I know the BOE came out and sent letters to FFL's stating tax must be collected (years ago). This is bull**** like the Amazon tax. The only parties that support this are the State and the FFL dealers (some of the big and active FFL dealer members here as well). Brick and Mortar store obviously want this so you buy from them and not an out of state dealer. I know a few FFL dealers skimming from this "free" money. They are more than happy to collect this tax. They can argue whatever they want for them to keep the milk and honey flowing, but its wrong.

Illinois high court just deemed their Amazon tax illegal because Federal laws prohibits tax on electronic commerce. Even if this practice stops in Cali, none of us will be getting refunds.

I am sure your going to see posts here from all the big boy FFL members here arguing their side (I won't mention any names)

[Artema]

Find a different FFL. Mine doesn't do it.

[WnP]

I believe all FFL's have to collect tax by law. Eveytime Ive done a transfer I get chargesd and they point to the letter. Contact the tax board I f they are skimming.

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[Artema]

Nah.

[Tasty]

IIRC it's not a "sales" tax, but a "storage" tax. Either way, it's BS.

[Hot Holster]

It is wrong because the FFL is not selling the item, only transferring it. Now if the law allows taxes on services, then they would be right in collecting the tax.

[zman]

Find a different FFL. Mine doesn't do it.

Nice! Can anybody let me know or PM me an FFL like this in SoCal?

I know a few FFL dealers skimming from this "free" money. They are more than happy to collect this tax. They can argue whatever they want for them to keep the milk and honey flowing, but its wrong.

It's definitely possible How can we check if an FFL remits our paid taxes? Shoot, I was never given any receipt on some of this BS out-of-State taxes I paid.

[SactoDoug]

The DMV charges the equivalent of a sales tax when you register a car from out of state also.

I recently bought a gun from Florida and had it shipped here. I was charged the sales tax too. It stinks but all of the FFL's I know charge it.

[Stewdabaker23]

Amazon has a physical presence here in California which is why they now collect sales tax. If a business has no physical presence in a state they are not required to collect sales tax per the scotus.

[BumBum]

California has a "use" tax, which is similar to a sales tax. If you don't pay sales tax on something that you purchase out of state from a retailer and use it here, then you pay the equivalent of a sales tax here.

See: http://www.boe.ca.gov/taxprograms/usetax/

So under this logic (and I've had FFLs tell me this before), if you pay sales tax on an item out of state, then you DO NOT pay it here. You just need to document the payment of the out of state sales tax for the FFL.

Now to OP, I'm curious as to what evidence you have that they are skimming? This seems awfully risky for the FFL, because they have to report sales tax to the BOE, and would be screwed if they were audited. In the case that you are instead worried about them overcharging, I would think it would be pretty easy to verify that the correct rate is being collected.

[al8550]

I'd be curious if one were to inform their FFL they found a "Crazy deal," like say a glock for $100. If there's no receipt in the shipping box how would one confirm the price of the firearm?

[BumBum]

I'd be curious if one were to inform their FFL they found a "Crazy deal," like say a glock for $100. If there's no receipt in the shipping box how would one confirm the price of the firearm?

See post #3 on this thread: http://www.calguns.net/calgunforum/s...d.php?t=366781

In the unusual event that there is no receipt, the best practice is to use fair market value.

[dirtyJ]

OP has a great point. As soon as you can convince the BOE to not shut down and fine into oblivion the FFLs who aren't collected tax let me know. Until then, I'd much rather them collect tax and stay in business. It sucks but right now it's a very solid fake law and nothing can be done about it without serious cash backing a lawsuit. It's a huge hassle for the FFL and I can promise you they really don't want to deal with it, and yes it does get sent to the BOE during tax times.

[zhyla]

OP might as just say "waaaah, the government collects tax." You don't have to like it, you just have to pay it.

[seainc]

When possible, buy from private person so pay no sales tax.