Tax on used rifle?

[vmuth]

I purchased a USED rifle from a private party from another state and had it shipped to Poway Weapons and Gear. When i called them, they quoted me a price for the dros and for them receiving it for me.

Today, i get a call stating the rifle is in and ready to start paperwork. The shop told me to bring in the sales receipt from the transaction so they can collect the tax. If i don't provide one, they will charge me a tax on the cost of the same rifle new.

Am i supposed to pay tax on a used rifle? All the shop is doing is receiving it for me and doing the background.

Curious.....

[Eatmyshade]

I always calls shops beforehand to know whats their tax policy is on transferring used firearms. They pretty much have you by the... Now that they have your firearm.

I would just make a invoice/receipt with a low yet reasonable price.

[Quiet]

I purchased a USED rifle from a private party from another state and had it shipped to Poway Weapons and Gear. When i called them, they quoted me a price for the dros and for them receiving it for me.

Today, i get a call stating the rifle is in and ready to start paperwork. The shop told me to bring in the sales receipt from the transaction so they can collect the tax. If i don't provide one, they will charge me a tax on the cost of the same rifle new.

Am i supposed to pay tax on a used rifle? All the shop is doing is receiving it for me and doing the background.

Curious.....

It's not a "sales tax", it's a "use tax".

CA has a "use tax" on any product that is acquired in another State for use in CA.
This tax is calculated at the same rate as sales tax.

Legally...
If you do not pay it at the dealer, you are required to pay it when you file your State income tax.

A few years back, the BOE started requiring CA FFL dealers to collect this tax for all firearms bought outside of CA and transferred to a person in CA.

[OCArmory]

There was some discussion that if it came from a private individual it would constitute an occasional sale and use tax would not need to be collected. There are differing letters from the BOE out there on this.

[kemasa]

Unfortunately in this case it is actually considered sales tax and the FFL is required to pay it. While the FFL does not have to collect it, generally the FFL does not want to give you a gift.

The CA BOE changed their view a couple of years ago. It used to be that if it was from out of state and from a private seller, it was an occasional sale and not from a business, then it was not subject to sales tax. This changed and now the CA BOE says that because Federal law requires that it go through a CA FFL, it is subject to sales tax. While this is bogus, there is little that can be done except to get new people elected to the BOE.

There is one exception to this and that is for C&R firearms where the CA resident has a C&R FFL since in that case Federal law does not require it go through a CA FFL, but CA does. It still has to be an occasional sale though and not from a business (shipping does not count).

The "differing" letters is only based on the date with respect to the change of view. All recent letters are the same and override the previous letters.

Fake receipts could be considered tax evasion and that is really not a good idea. Since the FFL is responsible and can have problems, including if/when it is discovered it was a fake receipt, if you were to make a fake receipt, the FFL should refuse to do the transfer. This includes a receipt with an amount which seems suspect.

So, unfortunately it is true that you have to pay the sales tax, or more correctly someone does, so it ends up typically being you. The FFL would be the one paying if they don't collect it from you and are audited.