Ammo Sales / Transfer on 1/1/2018

[tenpercentfirearms]

Here is what I am going to post.

[Tyke8319]

So let me get this clear:
"A" comes in and buys ammo off the shelf and pays price plus tax.
"B" orders ammo from XYZ Ammo Sales in Nebraska, has it shipped to you, and you transfer the shipment to "B" (plus any fee) minus sales tax...?

[sandiego67]

So let me get this clear:
"A" comes in and buys ammo off the shelf and pays price plus tax.
"B" orders ammo from XYZ Ammo Sales in Nebraska, has it shipped to you, and you transfer the shipment to "B" (plus any fee) minus sales tax...?

No, I think he is collecting sales tax in Option "B".

[kemasa]

So let me get this clear:
"A" comes in and buys ammo off the shelf and pays price plus tax.
"B" orders ammo from XYZ Ammo Sales in Nebraska, has it shipped to you, and you transfer the shipment to "B" (plus any fee) minus sales tax...?

Nope, the business has to collect sales tax.

[sandiego67]

Unless it is some rare caliber, why would anyone go through this online hassle?

[Scratch705]

Unless it is some rare caliber, why would anyone go through this online hassle?

all i know is the people with 03ffl + coe are gonna be popular folks and there is no way to stop the illegal co-ops that will sprout up with these holders and their close friends.

[TripleT]

How about when a customer complains, we all ask what organization they belong to that is fighting the BS ? 99 % of the 10 million gun owners in CA are going to want to know how this happened, when they have to pay an extra 30.00 for a brick of 22 lr.

[Tyke8319]

Nope, the business has to collect sales tax.

I know that BOE has ruled that we collect tax on a firearm because we are the considered the retailer of the firearm due to the registration of the firearm, but until ammo is "registered" to the consumer why do we collect Tax prior to that?

[kemasa]

I know that BOE has ruled that we collect tax on a firearm because we are the considered the retailer of the firearm due to the registration of the firearm, but until ammo is "registered" to the consumer why do we collect Tax prior to that?

Because it is going through your business. As far as they are concerned you are the retailer for the ammo as well, unless the seller collected the sales tax.

[Tyke8319]

Gotcha!

[tenpercentfirearms]

I know that BOE has ruled that we collect tax on a firearm because we are the considered the retailer of the firearm due to the registration of the firearm, but until ammo is "registered" to the consumer why do we collect Tax prior to that?

It was Penal Code, but I am having a hard time finding it now. It said something like we treat them ammo as if it were our own merchandise. So basically like firearms, I am now considered the retailer though I had absolutely nothing to do with the initial transaction.

The other kicker is the BOE can say, "We consider you the retailer, you owe sales tax on all of that ammo!" You can try and argue you don't, but if they win, then you owe the sales tax. Not the consumer. If they get the merchandise from you (vendor) and you don't collect sales tax, that is on you. There is no requirement you collect sales tax, just that you pay it. If you don't itemize the collection of sales tax, it is assumed you are including the sales tax in the purchase price.

[tenpercentfirearms]

Found it! PC 30312

30312.
(a) (1) Commencing January 1, 2018, the sale of ammunition by any party shall be conducted by or processed through a licensed ammunition vendor.

(2) When neither party to an ammunition sale is a licensed ammunition vendor, the seller shall deliver the ammunition to a vendor to process the transaction. The ammunition vendor shall promptly and properly deliver the ammunition to the purchaser, if the sale is not prohibited, . If the ammunition vendor cannot legally deliver the ammunition to the purchaser, the vendor shall forthwith return the ammunition to the seller. The ammunition vendor may charge the purchaser an administrative fee to process the transaction, in an amount to be set by the Department of Justice, in addition to any applicable fees that may be charged pursuant to the provisions of this title.

[mcisniper]

Crap! I really didn't want to collect sales tax too...

I'm guessing the state will want some sort of book keeping on this... Lot#s or just make, cal and quantity?

[acespawnshop]

How long until the state makes us start doing CAVLCS? Or California Ammunition Vendor License Check System. I'm sure it will be another scam to collect taxes. Mark this date and post down. aces pawn called it first.

[dvs762]

not sure about the tax thing. Last week my rep said we dont have to do sales tax..but this is cali..the tax rape capital of everything..