Ammo Transfers and 11% Tax

[eric90503]

Not sure if this is the right area to post this. I'm getting conflicting info from every FFL.

As I understand as of July 1st, all ammo and firearms sales will have an excise tax of an additional 11%.

Does anyone know if the sale (ammo) was made before July 1st and tax was paid. Will the buyer have to pay the extra 11% if pickup is AFTER
July 1st? ** Vendor is allowing me to place a backorder of my caliber of interest.

That being said Walsers of Torrance said they will charge the additional 11% if pick up is made after July 1st, regardless if purchase was made before
the July 1st cut off date..

For the guys in the South Bay, where you all getting you're ammo transferred at? Anyone have any insight on the tax law and stipulations?

Thanks

Eric

[Batman]

Every retailer I've seen WILL be charging the 11% if ammo is picked up on July 1st or later, regardless of when it was purchased. If what you want is on backorder, try to find another vendor that can ship in a timely manner, and then PICK UP THE AMMO BEFORE 6/30 (if you can pick up by Friday the 28th, even better)! Why before June 30? June 30th is a Sunday, and many stores are closed. Saturday the 29th will be a madhouse with people who are just discovering the tax will be trying to stock up as well.

[ar15barrels]

Not sure if this is the right area to post this. I'm getting conflicting info from every FFL.

As I understand as of July 1st, all ammo and firearms sales will have an excise tax of an additional 11%.

Does anyone know if the sale (ammo) was made before July 1st and tax was paid. Will the buyer have to pay the extra 11% if pickup is AFTER
July 1st? ** Vendor is allowing me to place a backorder of my caliber of interest.

That being said Walsers of Torrance said they will charge the additional 11% if pick up is made after July 1st, regardless if purchase was made before
the July 1st cut off date..

For the guys in the South Bay, where you all getting you're ammo transferred at? Anyone have any insight on the tax law and stipulations?

Thanks

Eric

The sales and excise taxes are applied when payment is made.
So make your FULL payment before July 1st and there is no basis for charging additional tax.

[eric90503]

Every retailer I've seen WILL be charging the 11% if ammo is picked up on July 1st or later, regardless of when it was purchased. If what you want is on backorder, try to find another vendor that can ship in a timely manner, and then PICK UP THE AMMO BEFORE 6/30 (if you can pick up by Friday the 28th, even better)! Why before June 30? June 30th is a Sunday, and many stores are closed. Saturday the 29th will be a madhouse with people who are just discovering the tax will be trying to stock up as well.

Thanks for the explanation. Good to know they're retailers out there. Haven't bought much ammo since 2017. I've picked up a bit here and there for my bolt gun, but only through walsers. Which retailers do you deal with. Good on them to not add this extra expense.

[eric90503]

The sales and excise taxes are applied when payment is made.
So make your FULL payment before July 1st and there is no basis for charging additional tax.

Thanks Randall. Got a custom bolt gun being finished up out of state and a pistol on order that probably won't make the cut off before July 1. Kovert in Irvine basically said the same thing as you. They were supposed to get a written confirmation from doj @3pm today.. Hope this gets thrown out as I know of a lot of people who can't afford this extra expense right now. At 21% is going to really take them out of the game.

[CalifEd]

Thanks Randall. Got a custom bolt gun being finished up out of state and a pistol on order that probably won't make the cut off before July 1. Kovert in Irvine basically said the same thing as you. They were supposed to get a written confirmation from doj @3pm today.. Hope this gets thrown out as I know of a lot of people who can't afford this extra expense right now. At 21% is going to really take them out of the game.

Do you think that a big reason for this tax is just that; to reduce/keep some people from buying guns and ammo?

[Tere_Hanges]

[/B]

Do you think that a big reason for this tax is just that; to reduce/keep some people from buying guns and ammo?

Yes obviously, but it's more than that. The intent isn't just to make guns and ammo more expensive, it is also to put dealers out of business. By making guns and ammo so much more expensive, people will buy less which hurts the dealers who are already operating on razor-thin profit margins. So the intent is twofold: reduce gun and ammo sales by making them more expensive and put dealers out of business due to low sales and profit margins. And if CA gun sales decrease that obviously impacts gun makers and distributors. Maybe wholesale prices will decrease to adjust to the decrease in sales (demand)? It could in theory.

Manufacturers and distributors could simply lower the price they charge dealers by 11%, then the price the consumer pays would not change. But I have no idea if that is possible. And even if they did that, I doubt the dealers would pass the savings on.

[OldShooter32]

California state board of equalization has determined that the tax is due when the product actually changes hands. DROS a gun that ripens after July 1 and the tax is due.
They also state that the tax is applicable to any transaction related to the sale of guns or ammo: This includes transfer fees and credit card fees. It does not apply to the DROS fee or the $10 Private party transfer fee.
Law enforcement personnel, active or retired, are exempt from the 11% tax.