How is 11% add on tax apply ?

[newbie1234]

If today (Jun 11 2024) I go to LGS and buy 3 pistols and I paid off all of them. Are there any way to get away from the 11% add-on tax ? Can they do 3 DROS today, and the pick up of the second and third is 30/31 days apart from each gun ?

[Quiet]

AFAIK...

If you are not exempt from the 1 in 30 day wait; then, due to the 1 in 30 day wait, you will end up paying the additional 11% tax on handguns #2 and #3.

Without an exemption any additional DROS submissions after the 1st one will be denied due to violating the 1 in 30 day wait and each additional submission after the 1st will cause the 1 in 30 day wait to reset and start over.
~Example #1 = DROS #1 on 06-11-24 at 1300 hours, DROS #2 on 06-11-24 at 1315 hours, and DROS #3 on 06-11-24 at 1330 hours will result in DROS #2 & #3 being denied and the 1 in 30 day wait ending on 06-11-24 at 1330 hours.
~Example #2 = DROS #1 on 06-11-24 at 1300 hours starts the 1 in 30 day wait, which ends on 07-11-24 at 1300 hours. DROS #2 on 06-21-24 at 1330 hours gets denied and restarts the 1 in 30 day wait, which now ends on 07-21-24 at 1330 hours.


If you are exempt from the 1 in 30 day wait; then all three handguns can be DROS'd at one time and picked up after the 10 day wait
^If done before 07-01-24*, no additional 11% tax will be imposed on these sales.
*Most CA FFL dealers are stating the cut off date is 06-20-24 due to the 10 day wait.

A person with a valid C&R 03-FFL and valid COE is exempt from the 1 in 30 day wait.

Note that acquiring/buying more than one handgun within a 5 business day period will cause the FFL to report the transactions (ATF Form 3310.4) to BATFE pursuant to Federal laws [18 USC 923(g)(3)]. This is typically a non-issue for a person with a valid C&R 03-FFL.

[newbie1234]

Thanks You.

[Dvrjon]

[Jimi Jah]

Is the 11% applied to the sale price alone or the total due including sales tax?

[newbie1234]

Is the 11% applied to the sale price alone or the total due including sales tax?

I guess.
The 11% tax will ADD ON to the local sale tax, in LA county you pay 21% sale tax (11% + 10% city sale tax), in some county you pay 19% sale tax ( 11% + 8% city sale tax).

[cz74]

Are they allowed to have a line item for the 11% excise tax? Thought the law says this is a tax that the FFL pays. I see mass waves of class action suing the big ones (Sportsmans, Cabela, etc.) if the law prohibits explicit excise tax on the line item.

[Jimi Jah]

If an item sells for $1 with a state and local sales tax of 10%, does the extra new 11% tax based on $1 or $1.10?

In other words, do they now tax a tax?

[Quiet]

If an item sells for $1 with a state and local sales tax of 10%, does the extra new 11% tax based on $1 or $1.10?

In other words, do they now tax a tax?

AFAIK...

$1.00 + 10% sales tax + 11% excise tax = $1.21

[MountainLion]

Are they allowed to have a line item for the 11% excise tax? Thought the law says this is a tax that the FFL pays. I see mass waves of class action suing the big ones (Sportsmans, Cabela, etc.) if the law prohibits explicit excise tax on the line item.

Can you explain the legal basis of your assertion?

Note that an 11% federal excise tax has been in effect for nearly 100 years, and it is not a line item. So why does this one need to be?

[Scotty]

So who's going to be the first to charge $1.00 for a $800 gun and $799 for a pen rental fee?

[BigMac90660]

If an item sells for $1 with a state and local sales tax of 10%, does the extra new 11% tax based on $1 or $1.10?

In other words, do they now tax a tax?

More than likely. It is California after all.

[Jimi Jah]

Was in LAX buying a couple boxes of Lapua .22 match before the tax. They said the 11% is added to the total that includes sales tax.

They are taxing the sales tax it turns out.

[Dvrjon]

[ProfChaos]

So taxing a tax. I thought that was illegal on face value.