Selling gun through FFL PPT

[kemasa]

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.....

The transfer is considered the sale by the state of CA.

Paying the money is not actually buying the item. It is like buying a car and not doing the paperwork, you really don't own the car.

[edgerly779]

No sales tax on ppt face to face transaction. Asked and answered . FFL not involved in sale only transfer of ownership via dros. $35 maximum total fee mandated by state. $25 to state $10 to ffl. In the ops instance no sales tax.

[kemasa]

No sales tax on ppt face to face transaction.

That is not always the case. If the FFL gets involved in finding the buyer or seller or gets involved in the selling price, then it would be subject to sales tax.

Asked and answered . FFL not involved in sale only transfer of ownership via dros. $35 total fee mandated by state.

The fee is NOT mandated by the state, other than the $25 DROS fee. The maximum the FFL can charge in addition to that is $10, but they don't have to charge that.

[M1NM]

PPT no tax. You'll need your DL buyer will need DL and firearm safety card also a second item showing an address, electric bill lease etc if it's a handgun.

[kemasa]

PPT no tax.

That is NOT always the case. Take a look at the CA BOE code.

[Bullets&Whitewalls]

The transfer is considered the sale by the state of CA

Paying the money is not actually buying the item. It is like buying a car and not doing the paperwork, you really don't own the car.

Taxing the transfer itself would be taxing labor. I didn't think you could do that. On the second part


If your referring to registration this is not entirely true. Once you have paid a private party for a used car and you have possession of it you legally own it. Release of liability by the owner costs nothing and doesn't count as doing paperwork. For instance I can legally buy a car for parts take what I want and scrap the rest of it with title in original owners name. I have done it many many times. Although I do know dmv charges tax on the value of the sale price when you do the transfer so I assume this falls along the same lines in the eyes of the boe . I'm guessing that's were you headed with that ?

[kemasa]

Taxing the transfer itself would be taxing labor. I didn't think you could do that. On the second part

Talk to the BOE. In some cases labor is subject to sales tax.

If your referring to registration this is not entirely true. Once you have paid a private party for a used car and you have possession of it you legally own it. Release of liability by the owner costs nothing and doesn't count as doing paperwork. For instance I can legally buy a car for parts take what I want and scrap the rest of it with title in original owners name. I have done it many many times. Although I do know dmv charges tax on the value of the sale price when you do the transfer so I assume this falls along the same lines in the eyes of the boe . I'm guessing that's were you headed with that ?

Not really. You may have the release, but you don't really own it. A firearm is not really owned by the person until it is transferred. In any case, CA consider the transfer to be a retail sale.

[Big Data]

What about a case where the FFL auctions a gun for a seller, but the actual transaction is a PPT at the FFL's place of business? Since the FFL located a buyer by using an auction site, this PPT would be subject to sales tax, yes?

[ke6guj]

What about a case where the FFL auctions a gun for a seller, but the actual transaction is a PPT at the FFL's place of business? Since the FFL located a buyer by using an auction site, this PPT would be subject to sales tax, yes?

yup. I have bought many consigned firearms at auction and the sale is taxed even though it is processed as a PPT.

[smoothang21]

So if the seller ships firearm to my ffl and signs a letter sayin it's a ppt then no tax is collected?

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[hermosabeach]

OP-
Draft a simple letter
Something along the lines that if the Transfer is not completed, you are required to take the gun back. As the seller you would need to have a current HSFC card, pay the DROS, and make 2 more trips to the FFL.

So if the transfer fails to go through, you have a 25% or 50% "restocking fee" to cover your time and headache if the buyer turns out to be ineligible to complete the transfer.



It is rare that a buyer fails the background check... But when it happens, I would prefer a simple letter signed by the buyer so they know you are not going to refund the purchase....

[kemasa]

What about a case where the FFL auctions a gun for a seller, but the actual transaction is a PPT at the FFL's place of business? Since the FFL located a buyer by using an auction site, this PPT would be subject to sales tax, yes?

Yes. If the FFL finds the buyer or seller or gets involved with the price it is subject to sales tax.

[kemasa]

So if the seller ships firearm to my ffl and signs a letter sayin it's a ppt then no tax is collected?

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It depends.

[kemasa]

If it is shipped, it is not a PPT.

[M1NM]

So if the seller ships firearm to my ffl and signs a letter sayin it's a ppt then no tax is collected?

PPT is when both are present at the FFL. If the gun is received on your behalf by the FFL he has to log it into his bound book. You then fill out the paperwork and pay the DROS and whatever fee the FFL charges for receiving a gun. He would also collect sales tax on this transfer. PPTs are not logged into the FFL bound book. If he gets audited by the ATF or DOJ he needs to have every gun he has for sale or in for gunsmithing logged in his book. The PPT firearms need to have their DROS paperwok present but they don't need to be in his bound book.