Out of state transfers and sales tax

[JesseJames87]

I've had uniquely different experiences with the various FFL's I've used. Some charge significantly more than others for the exact same service. 10 years ago or so, I used a now out of business pawn shop in the central valley. They were very reasonable, maybe because I also purchased from them occasionally. When I picked up a surplus rifle online and had it shipped there, they only charged me the basic fee which I remember being around $50 give or take. They informed it me it was my responsibility to report the purchase price in my taxes and pay the 8% liability or whatever it was back then.
Fast forward to now and i'm in the market for another surplus rifle. I've called a few shops and no 2 are charging the same price to transfer it. One shop told me it would be around $300 with the tax and fees which is absurd. Another shop in the mountains that my family uses sometimes quoted less than $100, and didn't even mention tax. I plan on double checking that before I decide on making the excessive 2-part 5+ hour drive...
With pretty much any commodity bought online, tax may or may not be assesed depending on locale. As far as I know, it is always the consumers' responsibility to report untaxed purchases and pay it. Hoping someone more experienced can point me in the direction of a more local shop(bay area) that isn't going to nickel and dime me. The purchase price is already more than I want to pay.
Maximum I'm willing to spend on fees for using an FFL to ship to, is about $100. If it is considerably more than that, I can't justify the cost and will choose to live without the rifle. This isn't an investment for me, I plan on keeping it if I buy it.
Thanks for reading!

[edgerly779]

No law says must use ffl to ship. Find ffl that receives from private party. Down here ffls charge 100 or less for transfer and dros fees.

[JesseJames87]

No law says must use ffl to ship. Find ffl that receives from private party. Down here ffls charge 100 or less for transfer and dros fees.

Thank you, that's exactly what I wanted to hear.

[Nardo1895]

No law says must use ffl to ship. Find ffl that receives from private party.

Is that what you were asking? I assume you were talking about a receiving FFL.

As far as sales tax goes, I don't think there are any CA FFLs who no longer charge sales tax on transfers. I wish I didn't have to but if I didn't and got audited I'd have to pay the tax and a fine. I think this started about 8 years ago which was before I had an FFL. The home based dealer I'd used for years did not charge sales tax, but he started about then. So yea, a lot has changed in the last 10 years. DROS fee has also doubled since then.

[JesseJames87]

Is that what you were asking? I assume you were talking about a receiving FFL.

As far as sales tax goes, I don't think there are any CA FFLs who no longer charge sales tax on transfers. I wish I didn't have to but if I didn't and got audited I'd have to pay the tax and a fine. I think this started about 8 years ago which was before I had an FFL. The home based dealer I'd used for years did not charge sales tax, but he started about then. So yea, a lot has changed in the last 10 years. DROS fee has also doubled since then.

Ah, my confusion. Yeah that makes sense. It's possible the cheaper shop I talked to just didn't mention the tax liability.

[HPT]

Ah, my confusion. Yeah that makes sense. It's possible the cheaper shop I talked to just didn't mention the tax liability.

It sounds like it, you need to specifically ask them if they are charging the sales tax on the transfer and what that rate is. I have some clients that balk when I tell them that the State forces me to collect the sales tax on gun and ammo transfers, but the law is the law and I have to abide by it. I have a lot of clients that only use me for transfers as the sales tax rate in Ventura County if cheaper than LA county.

[JesseJames87]

It sounds like it, you need to specifically ask them if they are charging the sales tax on the transfer and what that rate is. I have some clients that balk when I tell them that the State forces me to collect the sales tax on gun and ammo transfers, but the law is the law and I have to abide by it. I have a lot of clients that only use me for transfers as the sales tax rate in Ventura County if cheaper than LA county.

Thank you

[ronlglock]

[JesseJames87]

Glad I asked. I'll save the gas and wear and tear on my car. Any tips on a willing and reasonable FFL in the bay area to accept delivery and handle the paperwork?

[1911-CV]

More tax questions

+1 - CA law requires FFLs to collect sales tax on ammo and firearms transfers unless the invoice clearly shows that CA tax was paid...

Does it have to be CA tax that was paid, or if the tax was paid in the selling jurisdiction, is that good enough (I think the states have some sort of interstate tax agreement).

Do CA local taxes apply on transactions of used goods with individuals? Buying from Bob versus Bob's Guns Store Inc?

[JesseJames87]

Does it have to be CA tax that was paid, or if the tax was paid in the selling jurisdiction, is that good enough (I think the states have some sort of interstate tax agreement).

Do CA local taxes apply on transactions of used goods with individuals? Buying from Bob versus Bob's Guns Store Inc?

That's a fair question. I'm looking at an M1 Garand from the CMP which is well used with some new parts. I read somewhere that all the Garands have been paid for long ago. The CMP does charge tax for local purchases as far as I know, but not to out of state purchases/deliveries.
If I have ever get a C&R and an FFL03, wonder if I could buy one direct and drive it home from FL or OH?

[ronlglock]

Does it have to be CA tax that was paid.

Do CA local taxes apply on transactions of used goods with individuals? Buying from Bob versus Bob's Guns Store Inc?

https://www.cdtfa.ca.gov/industry/gun-dealers.htm

[M1NM]

I've had shops not charge me sales tax if the seller included a note stating occasional sale between private individuals.

[M1NM]

They should charge you the difference. It TN tax was 6% and CA tax is 9% you owe 3%. It's the same method they use if you buy a car out of state.

Wait until they start using the Dutch method. Seller pays 10% and buyer pays 10%. I knew a guy who took cars from the US to Holland. He paid 10% when it arrived and another 10 on the sale price. The buyer adding his 10 brought the .gov take to 30% on anything coming into the country. It's how they fund their "free" healthcare and drug programs.

[Librarian]

Posted in 2017, http://www.calguns.net/calgunforum/a...6&d=1395273661 2012 opinion from CA Board of Equalization

Thus, in your situation, where you purchased a firearm from a seller in Tennessee (out-of-state private party seller)

and

the seller shipped the firearm through a dealer with a Federal Firearms License (FFL) to a dealer in California with a FFL to complete the transfer pursuant to federal law,

your purchase would be subject to California sales tax.

The California dealer is considered the retailer and owes sales tax on the total amount of the sales price of the gun, including their service charge, but excluding the Dealer’s Record of Sale (DROS) fee.

Given this, shipping state should not collect sales tax. That state may have its own opinion on that.

In "shipped the firearm through a dealer", I do not believe 'through a dealer' is a requirement for the tax liability. Shipped to CA FFL seems to be sufficient.