fees and sales taxes on ppt

[bjjgrappler]

Hello,

I understand the DROS fees to the State and to the shop.

When doing an in person PPT with both parties at the shop is the buyer forced to pay sales tax?

thanks in advance

[waygeekierthanu]

Never

Sent from my SM-G781U1 using Tapatalk

[mdr110]

Some shops will nickel and dime you like that, they program their cash register/POS that way. Its extra profit for them and it adds up.

[cyphr02]

If they charge sales tax and don?t send on the $$ to .gov, is it fraud?

[TKM]

Yes, feel free to send a copy of your receipt to the tax weenies.

[bjjgrappler]

thank you all.

I appreciate it!

[Tyke8319]

If the dealer is AT ALL involved in the transaction (money exchange) is responsible for collecting tax.

[OCGunFan]

If the dealer is AT ALL involved in the transaction (money exchange) is responsible for collecting tax.

This is 100% false info. FFL dealers are ALWAYS involved in a firearm or ammo transfer, but PPT by law are exempt from sales tax. The FFL must charge sales tax if an item was purchased outside of Calif and sent to a Calif FFL, then transfered to an individual. However, if an item was purchased in Calif with the sales tax originally paid in Calif, its taken out of Calif and reimported back to Calif with proof of the original purchase, it is tax exempt.

I'm having an argument with a gun range in south OC who wants to charge me tax for a PPT gun on consignment and I'm not on board with them double dipping. The DOJ law is clear, PPT transfers are exempt from sales tax, period. Anyone have a proof to the contrary ?

[taperxz]

This is 100% false info. FFL dealers are ALWAYS involved in a firearm or ammo transfer, but PPT by law are exempt from sales tax. The FFL must charge sales tax if an item was purchased outside of Calif and sent to a Calif FFL, then transfered to an individual. However, if an item was purchased in Calif with the sales tax originally paid in Calif, its taken out of Calif and reimported back to Calif with proof of the original purchase, it is tax exempt.

I'm having an argument with a gun range in south OC who wants to charge me tax for a PPT gun on consignment and I'm not on board with them double dipping. The DOJ law is clear, PPT transfers are exempt from sales tax, period. Anyone have a proof to the contrary ?

CONSIGNMENTS are in fact taxed since the dealer is involved in the sale unlike the PPT which the dealer is not involved in the sale. So, you are 100% in the wrong.

[sass2924]

CONSIGNMENTS are in fact taxed since the dealer is involved in the sale unlike the PPT which the dealer is not involved in the sale. So, you are 100% in the wrong.

This is correct

[9Cal_OC]

CONSIGNMENTS are in fact taxed since the dealer is involved in the sale unlike the PPT which the dealer is not involved in the sale. So, you are 100% in the wrong.

This. Cosignments are like PPTs except worse; you pay tax.

[sass2924]

When a California private party seller brings a California FFL dealer a firearm and requests that they find a buyer, the FFL dealer is considered the consignee and retailer of the firearm and liable for sales tax on the subsequent sale of the firearm.

However, when a California FFL Dealer completes the registration paperwork for a California private party that is selling a firearm to a California purchaser and the seller and purchaser have negotiated the terms of sale in advance, and then bring the firearm to you to meet the statutory requirements for the documentation and registration of the transfer, the California FFL dealer is not considered to be the retailer of the firearm and not be responsible for the tax provided the FFL dealer does not take title to the firearm at any time during the transaction. The private party seller would be liable for the tax unless the transaction qualifies for an exemption. For example, the sale of a firearm between California private parties may be exempt from tax if the sale meets the provisions of an exempt occasional sale as provided in Regulation 1595,

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

[OCGunFan]

CONSIGNMENTS are in fact taxed since the dealer is involved in the sale unlike the PPT which the dealer is not involved in the sale. So, you are 100% in the wrong.

I understand what you're saying, EXCEPT, this is an off roster gun, the FFL is transferring the gun to me by PPT paperwork and this gun is NOT considered in the FFL's inventory. I would agree with all of you if this gun was purchased or owned by the FFL and then sold to me on a standard DROS, rather than a PPT. However, that's illegal due to the guns off roster status and the only way it can be sold is by PPT or to an exempt person.

I just got off the phone with DOJ, they stated that PC 28055 clearly describes the fees that FFL's can charge for a PPT. Again, according to the DOJ and Calif law, the FFL cannot charge sales tax on PPT's. There is no reason an FFL should charge sales tax for a PPT, tax was already paid when it was originally purchased and the law is clear what an FFL can charge.

[taperxz]

I understand what you're saying, EXCEPT, this is an off roster gun, the FFL is transferring the gun to me by PPT paperwork and this gun is NOT considered in the FFL's inventory. I would agree with all of you if this gun was purchased or owned by the FFL and then sold to me on a standard DROS, rather than a PPT. However, that's illegal due to the guns off roster status and the only way it can be sold is by PPT or to an exempt person.

I just got off the phone with DOJ, they stated that PC 28055 clearly describes the fees that FFL's can charge for a PPT. Again, according to the DOJ and Calif law, the FFL cannot charge sales tax on PPT's. There is no reason an FFL should charge sales tax for a PPT, tax was already paid when it was originally purchased and the law is clear what an FFL can charge.

You're still wrong and you're not covering the second hand license agreement we have with the person selling. FFL's with a second hand consignment license are getting paid a percentage of the sale to sell that gun on their behalf. We only use the PPT portal because its the only way to dispose of that gun in the system and let the DOJ know that the gun being purchased is no longer in that persons name.

Anyway, you can get upset all you want but that store is doing it correctly.

[taperxz]

I just read the penal code and it can be interpreted in a couple ways. The word fees is used in every clarification. And the FFL may not charge more than a $10 fee on a sale, loan, or transfer of a private party fire. And it says that they may not charge any additional fees. But what he's charging is a tax and I guess the million-dollar question is, is tax a fee? Everything's written in a gray area these days. But if you are going to charge somebody tax and they're going to pay it to you, as an FFL your *** better send that money into the government otherwise you should be shut down just for being a complete a-hole and a thief. What you did is stole money from somebody

I just love the experts here

Tax is closely monitored in this state. Not sure if you're familiar with those folks but not paying sales tax you collect for the state is worse than not paying income tax. No ding dong would not send the money to the state AND forget getting shut down, you are looking at time in San Quentin for not paying the sales tax owed.

YES! an FFL can charge a percentage for a consignment gun. If we couldn't, why in H E L L would we even bother doing the paperwork?