Selling gun through FFL PPT

[dragonfly22588]

So I've agreed with a buyer to sell my gun. We have agreed to meet at a FFL to do the exchange. This is my first time doing a sell through a FFL. Is there anything I should know about doing this? Helpful hints or tips. He has called and confirmed that this shop does them.

I thought I remember also that if I state I am selling the gun for a certain price, the buyer is subject to pay taxes to the state on that amount? Is this true? If that's the case is it common practice to accept payment prior and gift it to someone?

Do I need to bring anything in particular? Thanks.

[Flintlock Tom]

Very easy for the seller, just bring CA ID.
No sales tax for a PPT (Private Party Transfer).

[Garv]

I have heard, but not seen, that the FFLs have to charge tax if they see the money exchange.
Right or wrong, hand off the money discretely is my suggestion.

[Bullets&Whitewalls]

I have heard, but not seen, that the FFLs have to charge tax if they see the money exchange.
Right or wrong, hand off the money discretely is my suggestion.

Nope. They cannot charge tax. I have heard the same bs. They tried to compare themselves to the dmv. You are not registering a car for craps sake lol. Sales tax was paid by the original owner when the gun was new. I had this argument once at big 5. But they could not show me anywhere where it stated such.

[tanakasan]

We had to do the cash exchange/purchase outside of the FFL place of business. Then as stated, CA DL, car registration and $25 fee for PPT.

Robert

[ugimports]

Nope. They cannot charge tax. I have heard the same bs. They tried to compare themselves to the dmv. You are not registering a car for craps sake lol. Sales tax was paid by the original owner when the gun was new. I had this argument once at big 5. But they could not show me anywhere where it stated such.

Yes they can charge tax in the following scenarios:
1) Not a Face to face PPT - e.g. seller in Southern CA, buyer in northern CA, pistol shipped and no letter stating this was a private sale
2) FFL helps Buyer find Seller
3) Purchase a used gun from Nevada FFL, it ships to CA FFL

In all these cases "sales tax was paid by the original owner when the gun was new" -- that has no bearing on why sales tax is collected. It's lame but true.

The Big 5 guys probably couldn't find it because it has nothing to do with DOJ or ATF regs...it's Board of Equalization... and it's buried... I know this because when I started my company I sent a letter for clarification and was told straight up to collect sales tax since I am responsible for it and I will not pay it on behalf of my customers..

I do make sure my customers know this up front so it is not a surprise.

[dragonfly22588]

Does the buyer need to bring his car registration?

[DEPUTYBILL]

You should check with the FFL you are using regarding these issues. Some FFL's I have used require the payment for the firearm be done outside of the store. Others are ok with the money changing hands in the store.
Some FFL's want the buyer to provide all the information needed to them so if the sale does not go though they have it so they can return the gun to the seller.

[kemasa]

Yes they can charge tax in the following scenarios:
1) Not a Face to face PPT - e.g. seller in Southern CA, buyer in northern CA, pistol shipped and no letter stating this was a private sale
2) FFL helps Buyer find Seller
3) Purchase a used gun from Nevada FFL, it ships to CA FFL

A slight addition to #2, if the FFL finds the buyer OR seller OR gets involved in the purchase price, it is subject to sales tax.

#1 is a bit of an issue as well. It also has to be an occasional sale. Private sales can be taxed if the person keeps selling firearms so that it is no longer occasional. There is no requirement for a letter, but the FFL needs to protect themselves, so it is best for the FFL to require a letter so that they are protected during a BOE audit.

[Bullets&Whitewalls]

Yes they can charge tax in the following scenarios:
1) Not a Face to face PPT - e.g. seller in Southern CA, buyer in northern CA, pistol shipped and no letter stating this was a private sale
2) FFL helps Buyer find Seller
3) Purchase a used gun from Nevada FFL, it ships to CA FFL

In all these cases "sales tax was paid by the original owner when the gun was new" -- that has no bearing on why sales tax is collected. It's lame but true.

The Big 5 guys probably couldn't find it because it has nothing to do with DOJ or ATF regs...it's Board of Equalization... and it's buried... I know this because when I started my company I sent a letter for clarification and was told straight up to collect sales tax since I am responsible for it and I will not pay it on behalf of my customers..

I do make sure my customers know this up front so it is not a surprise.

What is the explanation for it? Your right that is completely lame considering a used gun is a used gun. That does not change. And the FFL invovement makes no since either being that you can't charge tax for time (labor). I guess it figures though the man always wants his cut wether it's right or wrong LOL

[kemasa]

What is the explanation for it? Your right that is completely lame considering a used gun is a used gun. That does not change. And the FFL invovement makes no since either being that you can't charge tax for time (labor). I guess it figures though the man always wants his cut wether it's right or wrong LOL

The FFL is a retailer. When the retailer sales things, then sales tax is due. It does not matter whether it is new or used. Consider places that sell used items, they still charge sales tax.

The BOE changed their view (even though the law did not change) regarding firearms coming from out of state claiming that Federal law requires that it go through a CA FFL so somehow it is subject to sales tax, which is bogus. The problem is that the BOE does not seem to answer to anyone, so remember that when you vote for your BOE representative.

[vintagearms]

As a seller, just bring the firearm and your CDL. Some ffls want inspection/money transfer to happen outside their store but most i have found want those transactions done discretely inside from public view.

[kemasa]

I have no idea as to why some FFLs want the inspection and money transfer to happen outside their location. If they are not involved, it does not matter and it is clear that the firearm is being sold. I suspect that they are afraid of something which really does not exist.

[edgerly779]

^^^ wHAT KEMASA SAID. Buyer brings ca id with address to match utility bill, dmv registration, lease with address. Seller brings ca id, the firearm takes the money from buyer signs paperwork and walks away. No sales tax involved .

[Bullets&Whitewalls]

The FFL is a retailer. When the retailer sales things, then sales tax is due. It does not matter whether it is new or used. Consider places that sell used items, they still charge sales tax.

The BOE changed their view (even though the law did not change) regarding firearms coming from out of state claiming that Federal law requires that it go through a CA FFL so somehow it is subject to sales tax, which is bogus. The problem is that the BOE does not seem to answer to anyone, so remember that when you vote for your BOE representative.

That all makes sense. But the case here would be different being that the retailer (ffl) is not selling anything. All they are providing is a lawful paperwork and transaction to take place. The (sale) is only between the buyer and seller not the ffl. Maybe I'm still missing it.....