Tax Rate for New Gun Shipped FFL Transfers

[Maltese Falcon]

Does the State taxes that are charged get done at the rate of the county/city the FFL shop is in or the rate of the purchasers home address?

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[acespawnshop]

The city where the DROS takes place.

[ugimports]

I do it as the rate my shop is in...no different then if you bought a magazine from my office.

[BOOST3D]

What if i buy a gun from a California shop and pay tax, do i have to pay tax again when the FFL receives it and Dros is started?

[acespawnshop]

I'm sure Kemasa can chime in here. But I seem to recall that if the original FFL was to collect CA sales tax then they should have collected tax based on the 2nd FFLs transfer fee also. Maybe I got it wrong though. I don't do these ever really.

[kemasa]

I'm sure Kemasa can chime in here. But I seem to recall that if the original FFL was to collect CA sales tax then they should have collected tax based on the 2nd FFLs transfer fee also. Maybe I got it wrong though. I don't do these ever really.

That is correct.

[Baboosh]

I'm sure Kemasa can chime in here. But I seem to recall that if the original FFL was to collect CA sales tax then they should have collected tax based on the 2nd FFLs transfer fee also. Maybe I got it wrong though. I don't do these ever really.

That is correct.

So we are supposed to call each FFL and get their transfer fee and add it onto the sale of the rifle and charge tax?

This is news to me

[acespawnshop]

So we are supposed to call each FFL and get their transfer fee and add it onto the sale of the rifle and charge tax?

This is news to me

From what I understand yes.

[ugimports]

The good news is I don't think BOE gets down to that level of detail. As long as the taxes keep coming the few % points overall I think they consider a wash (IMHO).

[kemasa]

So we are supposed to call each FFL and get their transfer fee and add it onto the sale of the rifle and charge tax?

This is news to me

Well, I have mentioned it before and you can research it, but as the CA retailer you are responsible for submitting the required sales tax. If the firearm is sold by a CA retailer, then the CA transfer FFL is not the one who is responsible for submitting the sales tax.

[kemasa]

The good news is I don't think BOE gets down to that level of detail. As long as the taxes keep coming the few % points overall I think they consider a wash (IMHO).

That is quite the bet to make. If they do an audit, then they might discover it and then with interest and penalties you will be likely working for the state for quote some time.

[Baboosh]

Any dealer gone through a BOE audit?

[condor]

The good news is I don't think BOE gets down to that level of detail. As long as the taxes keep coming the few % points overall I think they consider a wash (IMHO).

You're right. The BOE doesn't care where the sales tax comes from, just that it equals a percentage of sales. The last DROS I did the dealer asked me 'about' what I paid for the gun since there wasn't an invoice and they were the only ones that would see it anyway.... MOF the dealer's Sales Tax is paid on gross sales. Not off of each individual sale. So thinking about it... it probably goes into the dealers pocket since it's a tax without a dollar amount?? Where it really gets messy is when the dealer wholesales as well as retails, with the wholesale being tax exempt... OR like a gun smith who sells and has labor which is tax exempt. It's a bowl of worms....

[tamalpias]

You minus the already paid sales tax off your total. I do this with cars when you go to the DMV and they access the tax on your vehicle they will subtract away the amount paid to another vendor or what was already collected in another state.

[kemasa]

Any dealer gone through a BOE audit?

There was a FFL down near San Diego. I heard that he owed over 6 figures. I don't think he was collecting sales tax on firearms coming from businesses out of state though.

So thinking about it... it probably goes into the dealers pocket since it's a tax without a dollar amount??

There might be some who steal the money, but it is the worse thing you can do and if the dealer gets caught most likely they will have very serious problems. I doubt that it is common.

There is a dollar amount. The Sales Tax Return is a bit bogus since the sales are not based on the actual income and so it does not relate to income tax.