PPT fees

[botsdots]

Interesting. The guy doing the transfer made a photocopy of the lock where it had the save a child slogan stamped on it.

[eltee]

On the taxing of out of state transfers, many buyers balk at paying tax to the Calif. FFL after shelling out their money to the out of state seller, and will refuse to use the Calif. dealer who charges tax since so many don't collect the "use" or "sales taxes. I guess there is always the chance that a tax man could visit an FFL who doesn't collect the tax, and then levy back taxes and penalites.

It would be nice if there could be a flowchart on taxing.

Somebody needs to get a definitive, legal answer on this that all Calif. FFL's can operate under so there is no inconsistency. Lose customers for charging taxes or risk fees and penalities from the BOE for not charging taxes? I can't see anyone calling up old customers to try and collect back taxes, but would the BOE simply take the info from the FFL's bound book and reach out to the customers?

On the locks, I've seen dealers simply mark on the yellow sheet (4473) in box 30c and in the "Dealer Information/Comments:" box on the DROS, "Approved lock provided." Is this all that needs to be done to meet the requirement? The dealer gives out a lock at the sale, or points out the lock the manufacturer provided (assuming it is a Calif. approved one), and that seems to take care of the lock issue. The locks the dealer gives out are those freebie ones from the police station.

[kemasa]

If you check out the info on the BOE website, all the answers are there, but still some FFLs don't follow it. It has been posted here several times too.

CA Sales Tax Firearms Information 495.0843, 495.0848 & 295.1675.600

I have a printout to show people who question it, but that does not cause other FFLs to follow the law.

The BOE would just get the money from the FFL. Why should they bother going after the customers? The BOE does not have a right to the bound book information.

The answer is that if the firearm comes from a business, you need to collect sales tax. If it comes from a private party and is an occasional sale, then you don't, but you need to get a letter to document that. If it is a PPT and the FFL gets involved in finding a buyer and/or gets involved in the sales price, then tax needs to be charged.

As far as the Feds are concerned, any lock will do. For CA, it needs to be certified. This means that if the person has a safe, then the form will work for CA and any old lock will then work for the Feds. I am not sure if the Feds are really enforcing it though. They said that they were going to add it to the FAQ, but so far they have not. There are serious problems with the wording. It mentions that a safe is acceptable, but the BATF lawyer says that it would have to be provided at the time of transfer by the FFL.

[halifax]

...
On the locks, I've seen dealers simply mark on the yellow sheet (4473) in box 30c and in the "Dealer Information/Comments:" box on the DROS, "Approved lock provided." Is this all that needs to be done to meet the requirement? The dealer gives out a lock at the sale, or points out the lock the manufacturer provided (assuming it is a Calif. approved one), and that seems to take care of the lock issue. The locks the dealer gives out are those freebie ones from the police station.

I, too, use line 30c to record the lock info for "Youth Handgun Safety Act" compliance. Just seemed like a good place to put it.

[Rob454]

ive never had to pay sales tax on a PPT. We show up money gets transfered the buyer pays the 35$ fee and we get copies of the things and we go our own ways.

Consignments yeah im sure dealer gets his cut and charges tax cause he is actually doing the sale.

[kemasa]

Have you ever had the FFL get involved in finding the buyer and/or dealing with the price? If not, then there should not be sales tax. It is also the case that the FFL is not aware of when sales tax is due in the case of a PPT. I would be willing to bet that many do not know that if they find the buyer or deal with the price that it changes things.