Donating long gun to my sons private school fundraiser

[XxWoodsHunterxX]

We live in A rural area and my son has started a private co-op pre-school. I was asked if I could donate a gun for the silent auction that takes place at the dinner in November. Is there anything specific as to what needs to be done? My plan was to buy a couple youth .22lr rifles and they were going to do a $10 ticket entry system for them. My first concern is that leaving them on display is not going to fly with me as I can't stay next to them the whole evening. Secondly is there stipulations other than the standard you must be of legal age and also legally allowed
To own a firearm to take possession for something like this. I know ducks unlimited and NRA DINNERS do it but not sure where to start as I am a newer FFL licensee. Any help would've appreciated.

[ugimports]

Not sure about stipulations other then what you mentioned. Maybe instead of leaving the firearms out leave out a flyer or the box with a colored flyer attached to it. I would maybe ping your local NRA folks and ask how they do it for their dinners.

[Jeepergeo]

Great idea. Maybe partner with a local gun store and have the lucky winner pick up the gun directly and do the paperwork and qualifying.

Having the gun on site will increase ticket sales...however, I'd check into the Gun Free Zone laws make sure they don't apply to the location where you will be doing the auction.

[Bobshouse]

That's what I was thinking, a gift certificate. Then when they go to retrieve the gun, the store can try to upsale them or complete the DROS, saving you the transfer fee.

[Condorguns]

I don't know what extra rules will apply to having this at a school but this is how I have donated forearms to both local gun club events and NRA dinners.

Way #1. We bring the firearm to the site. Stay with the gun (in the same room) during the dinner. Take the gun back to the shop. The winner comes in and does the normal DROS paperwork (we also pick up the DROS fees).

Way #2 We provide a set of photographs and a data sheet to the event. The gun stays at my shop. We are notified by the event of who the winner is and the winner comes in and does then normal DROS.

[XxWoodsHunterxX]

Well since I'm a FFL I was planning on doing the paperwork and picking up the fees as part of the donations. The event is off site of the actual school so I don't think there's a problem there but i will check with so to see if the county had any stipulations as far as this and will try and contact local NRA to see what they say. My initial thought was to bring box and specs of rifles to event and have them locked up at home until winner is decided.

[pacrat]

A tip of the hat, and a heartfelt Thank You Sir, for promoting and supporting the shooting sports among youngsters.

[ripro75]

How would sales tax apply, or would it?

[ugimports]

I had some BOE code that talked about gifts during raffle being exempt to the winner if the donating org paid. I'd have to dig it up though because a customer brought it in.

[RamonSJC]

Won a Benelli supernova at work. (Hospital). They had a flyer and a bucket to put in tickets. They had multiple firearms for sale. Simply a description of what it was, not even a picture of it.

[XxWoodsHunterxX]

I had some BOE code that talked about gifts during raffle being exempt to the winner if the donating org paid. I'd have to dig it up though because a customer brought it in.

If you could that would be great. My guess is as long as someone is paying them he boe doesn't care they just want their cut as usual

[ugimports]

Not exact parallel, but this is what I had.

Thank you for your recent e-mail requesting our advice regarding the proper application of the California Sales and Use Tax Law.

You state that you won a firearm from Glock, who is located outside of California, and the California firearm dealer who is processing the transfer is suggesting that tax is due on the transfer.

Revenue Taxation Code Section 6006, Sale, defines the term "Sale" to mean and include any transfer of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration.

Since you won the firearm in a competition and did not purchase it, no sale occurred. Therefore, assuming the firearm is donated by an out-of-state manufacturer, the out-of-state manufacturer is considered the donor and consumer of the donated/gifted firearm. For sales and use tax purposes, a use of the gift occurs at the location where the gift is delivered to a common carrier for shipment to the gift recipient; or in this case, the contest winner. When the prize is shipped from out-of-state, the out-of-state manufacturer is generally deemed to have consumed the firearm at a point outside of this state; and thus California use tax would not apply. In other words, the out-of-state manufacturer as well as the contest winner would not owe any California use tax on the firearm under the above assumed facts. This is true despite the fact that the contest winner of the firearm is located in California and will use the firearm in California.

Sales and Use Tax Regulation 1670, Gifts, Marketing Aids, Premiums and Prizes, subdivision (d) states in part, the operator of a game who awards property as a prize the winning of which depends upon chance or skill is the consumer of the property and tax applies with respect to the sale to or the use of the property by the operator.

Annotation 280.1040 Samples. An out-of-state manufacturer is not liable for California use tax with respect to sample merchandise mailed or shipped by the manufacturer from a point outside this state directly to prospective purchasers in California. 11/25/55.


Annotations are summaries of the conclusions reached by staff counsel as applied to specific factual situations. They are a research tool and intended to provide guidance regarding the interpretation of Board statutes and regulations. Annotations are not regulations of the Board and do not have the force or effect of law. In any instance where there is an inconsistency between the statutory law and an annotation, statutory law is controlling.

To support this exemption, the California firearm dealer would need to obtain and retain documentation from the out-of-state manufacturer, contest operator, or contest winner that the firearm was shipped into California to the contest winner as a prize.

From: WebRequest@boe.ca.gov [mailto:WebRequest@boe.ca.gov]
Sent: Tuesday, May 20, 2014 2:43 PM
To: EAD-CSPD Web Requests
Subject: SUTD Query

Title: Mr.
First Name: John
Last Name: Doh
Email Address: JohnDoe@gmail.com
Mailing Address:
City: San Lorenzo
Zip/Postal Code:
State: CA
County/Province: Alameda
Country: USA
Phone Number:
Account Number:

Comments: My wife talked with Jane today regarding this issue. The firearms dealer has requested a tax exemption form or letter stating that tax need not be collected for this item. The dealer's address is listed below. Please, if possible, send me a copy of the letter for my records to the above address.

The facts of the situation are as follows:
I competed in a Glock Professional Shooting event in Richmond, California on August 24, 2013 which resulted in my winning a firearm. I received the 1099 for income tax. Now I am attempting to complete the transfer through a firearms dealer. However, the dealer is charging me sales tax as the manufacture, Glock, is out of state. I did not purchase the item and feel that sales tax should not be charged.

According to Annotation 280.0300, 'the transfer to the contest winner is not a taxable sale since [he] acquired it by chance or skill. There is no use tax liability because [he] received the [firearm] as a gift or premium and not through a purchase.'

[1hotshooter]

Not exact parallel, but this is what I had.

UGImports to the rescue!

[XxWoodsHunterxX]

So technically it says there is no tax as it was won by chance or skill and no monies were exchanged in the transaction. Am I correct in that assumption?


Stay Frosty.

[ugimports]

Yes. I believe you ad the donator should give them a 1099 fpr their taxes at end of year. Your accountant can probably create it.

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