PPT Sales Tax. BOE Just called me

[dvs762]

So BOE just called me and stated all private sales in California are subject to sales tax to include PPT and private sales shipped into state. They are sending it to me in writing. I have been told by DOJ PPT are not subject to sales tax. Anyone have anything on this?

[CAL.BAR]

In EVERY PPT I have ever done, the FFL has ALWAYS included tax. Not sure where the confusion was. DOJ is NOT a taxing agency. DON'T rely upon advice from the DOJ for taxes. (or firearms legality for that matter)

[BABUSA]

PPT...both buyer and seller meet at the FFL of your choice. Flat fee of $35

If a gun is shipped to a FFL, it is NOT a PPT...tax will be charged.

[smak28]

In EVERY PPT I have ever done, the FFL has ALWAYS included tax. Not sure where the confusion was. DOJ is NOT a taxing agency. DON'T rely upon advice from the DOJ for taxes. (or firearms legality for that matter)

PPT in person between buyer and seller is not subject to tax for the transaction. Only fee that is charged is total $35 ($25 DROS + $10 fee for FFL). Just to clarify, are you are saying that you have paid tax for your face to face PPT transactions?

[smak28]

So BOE just called me and stated all private sales in California are subject to sales tax to include PPT and private sales shipped into state. They are sending it to me in writing. I have been told by DOJ PPT are not subject to sales tax. Anyone have anything on this?

OP - Just want you to be clear of the definition of "PPT" (Private Party Transfer):

- If a private seller (in or out of state) sends the firearm, via mail, to your local FFL for you to purchase, this is NOT considered PPT and IS subject to tax.

- If private buyer and private seller meet face to face at a FFL, this IS considered PPT and is NOT subject to tax (just total $35 for DROS + FFL fee).

[Junkie]

Dave (OP) is an FFL, and knows the definition of PPT.

[dvs762]

they are trying to tell me a face to face PPT is taxable and are sending me a written opinion letter stating this. They also told me when i started occassional out of state or instate personal sales sent to me are non taxable but now say they are taxable. I havent done many so Im not worried about that issue but the face to face is an issue if they want sales tax collected.

[taperxz]

I wonder if this is a new opinion based on BOE now being consummed by California Department of Tax and Fee administration?

[smak28]

they are trying to tell me a face to face PPT is taxable and are sending me a written opinion letter stating this. They also told me when i started occassional out of state or instate personal sales sent to me are non taxable but now say they are taxable. I havent done many so Im not worried about that issue but the face to face is an issue if they want sales tax collected.

Sounds like they told you the reverse but I guess the written confirmation will determine the fate....

EDIT: Sorry, not reverse. They're saying both scenarios are being taxed, which is crazy! Let's wait for the written letter...

[Scratch705]

wow really?

CA is really doubling down on the "tax gun ownership into oblivion" tactic

[dvs762]

last year when I started they said no tax on PPT or occassional private out of state or in stat sales. Now they say all PPT face to face or sent in by a private person are taxable. Im waiting for a letter and once I get it I will scan it and post it. This has severe ramifications if PPT are now subject to tax as my feeling is they will want to go back and jam us up for the taxes..which would kill me and a lot of other small FFL's.

[kemasa]

OP - Just want you to be clear of the definition of "PPT" (Private Party Transfer):

- If a private seller (in or out of state) sends the firearm, via mail, to your local FFL for you to purchase, this is NOT considered PPT and IS subject to tax.

Incorrect, at least until there is written proof of something changing. If the firearm comes from within CA and is it a private occasional sale, it is not subject to sales tax.

- If private buyer and private seller meet face to face at a FFL, this IS considered PPT and is NOT subject to tax (just total $35 for DROS + FFL fee).

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

[kemasa]

last year when I started they said no tax on PPT or occassional private out of state or in stat sales. Now they say all PPT face to face or sent in by a private person are taxable. Im waiting for a letter and once I get it I will scan it and post it. This has severe ramifications if PPT are now subject to tax as my feeling is they will want to go back and jam us up for the taxes..which would kill me and a lot of other small FFL's.

It has been a couple of years since they said that from out of state is subject to sales tax, with the exception of a C&R private occasional sale where the buyer has a C&R FFL (have letter on this).

I also have a letter somewhere it which they said that a PPT is not subject to sales tax. They can't go after you for the past when they made a change.

In some respects you should not post the letter since it could then be viewed as putting others on notice of this absurd change.

[kemasa]

PPT...both buyer and seller meet at the FFL of your choice. Flat fee of $35

Incorrect. The DROS fee is $25 for any number of firearms transferred at the same time and the FFL can charge $10 per firearm for a PPT. Two firearms PPT'd at the same time would come to $45, for example.

If a gun is shipped to a FFL, it is NOT a PPT...tax will be charged.

Incorrect. I have a nice letter from the BOE in which is states that a C&R firearm from a private seller, an occasional sale, and where the buyer has a C&R FFL is not subject to sales tax. Also, there are letters that a private occasional sale from within CA is not subject to sales tax.

[dvs762]

All I know is its giving me a freaking headache..