Tax on DROS

[ugimports]

^^ Correct.

[kemasa]

The DROS fee ($25) is no longer taxed, it used to be. That might be where some of the confusion is from.

The FFL fee is only taxed if the firearm is taxed. For example, there is no sales tax on a PPT, unless the FFL arranges the price and/or finds the buyer, the same with a firearm which is from a private party which is an occasional sale and the person does not have a business.

[TripleT]

The DROS fee ($25) is no longer taxed, it used to be. That might be where some of the confusion is from.

The FFL fee is only taxed if the firearm is taxed. For example, there is no sales tax on a PPT, unless the FFL arranges the price and/or finds the buyer, the same with a firearm which is from a private party which is an occasional sale and the person does not have a business.

So, that sorta' throws another wrinkle into the mix. If a FFL has a customer that says I have this XYZ super zombie slayer I'd like to sell and somebody comes in asking about XYZ zombie slayers, if FFL informs seller about the buyer and then does a PPT, FFL should collect tax on the 35.00 and the XYZ_SZS or just the XYZ_SZS or neither ???

[kemasa]

The $25 DROS fee is never taxable now, so only the $10 would be subject to sales tax. I don't think that there would be sales tax on the firearm, as long as the FFL does not deal with the money at all. The CA BOE might think otherwise, but you would need to confirm that with them.

In that example, the FFL should tell the person to do the PPT at another location so that sales tax is not collected.

[Cokebottle]

So, that sorta' throws another wrinkle into the mix. If a FFL has a customer that says I have this XYZ super zombie slayer I'd like to sell and somebody comes in asking about XYZ zombie slayers, if FFL informs seller about the buyer and then does a PPT, FFL should collect tax on the 35.00 and the XYZ_SZS or just the XYZ_SZS or neither ???

PPT is non-taxable.
Consignment is PPT using the FFL as a middleman. The situation that you describe would basically be a consignment.

Taxable would be the purchase of a new gun, or of a used gun out of dealer inventory (where the FFL actually purchased the gun or took it in trade).
Consignment of used guns is not considered "dealer inventory".

[Cokebottle]

The $25 DROS fee is never taxable now, so only the $10 would be subject to sales tax. I don't think that there would be sales tax on the firearm, as long as the FFL does not deal with the money at all. The CA BOE might think otherwise, but you would need to confirm that with them.

The $10 would not be taxable because the purchase itself would not be taxable.

[kemasa]

Please read: http://www.boe.ca.gov/sutax/annotati...5.1675.600.pdf

Consignment sales ARE taxed. PPTs depend on whether the FFL negotiates the price and/or finds a buyer, which in thinking about it the FFL would need to collect sales tax on the firearm as well. It is not as clear as you would like it to be.

As I said, if you find a buyer for a PPT or negotiate the price, have the person do the transfer someplace else so that sales tax does not have to be collected.

[crazy]

You guys are talking about a bunch of different scenarios. Mine was a simple transaction. I bought a stripped lower from the store. I was charged for the lower, $30 for DROS and tax on both. I questioned this and was told that it(DROS) was taxable. We are not talking about a lot of money, it's the principle. It wasn't the only issue with the transaction, but that's another story and for another thread.

[ugimports]

You guys are talking about a bunch of different scenarios. Mine was a simple transaction. I bought a stripped lower from the store. I was charged for the lower, $30 for DROS and tax on both. I questioned this and was told that it(DROS) was taxable. We are not talking about a lot of money, it's the principle. It wasn't the only issue with the transaction, but that's another story and for another thread.

In addition to being wrongly taxed you should should have only been charged $25.00 for the DROS. Could be $5.00 are the dealer's fees, but it should have been clearly stated for you and not mis-represented as the state fees.

I agree it's the principle as well.

[halifax]

You guys are talking about a bunch of different scenarios. Mine was a simple transaction. I bought a stripped lower from the store. I was charged for the lower, $30 for DROS and tax on both. I questioned this and was told that it(DROS) was taxable. We are not talking about a lot of money, it's the principle. It wasn't the only issue with the transaction, but that's another story and for another thread.

Your question was answered in post #2 and many others. What more were you expecting?

The thread took a differnt tack when other posters posted slightly different related issues. Happens in nearly every thread.

[kemasa]

You should demand the money back. Also, if the DROS was listed as $30, then you are due $5 since the DROS is $25 and it is illegal to represent it as something else.

As you say, it is the principle. It does not matter if it is $0.10, it is wrong to be charged illegally.

[gawker]

The FFL could have prevented this whole thread if he wrote on the receipt.

DROS $25.00
Dealer Fee $5.00

[kemasa]

Actually not, since it was said that sales tax was charged on the DROS.

[crazy]

Your question was answered in post #2 and many others. What more were you expecting?

The thread took a differnt tack when other posters posted slightly different related issues. Happens in nearly every thread.

I'm not expecting anything. I got one answer that seemed like the correct one, then things went in twelve directions. There is no one answer on this thread. I wanted to clarify what happened with my purchase to get the answer I am looking for.

Did I respond to your reply about something not even remotely related to this discussion. No. Maybe you can share some of your wisdom and explain how your post contributes anything to the discussion. I didn't buy software and my lower didn't come with 20 hours of training. Neither did the DROS. I would normally ignore you, but not today.

Here's your lovely contribution.

Services related to a taxable sale are taxable Your charges for services related to a taxable sale are generally taxable. This is true whether you itemize the charges or include them in the price of the product. For example, suppose your taxable sale of a computer program includes 20 hours of training, and the customer cannot buy the program without the training services. The training is taxable as part of the sale whether you show a separate charge for it on your invoice or charge one amount for the program and training together.

Thanks for all your help.

[crazy]

In addition to being wrongly taxed you should should have only been charged $25.00 for the DROS. Could be $5.00 are the dealer's fees, but it should have been clearly stated for you and not mis-represented as the state fees.

I agree it's the principle as well.

You're right. When I picked up the lower, the receipt listed the DROS as $25 and $5 store fee, but when I was paying I was told DROS was $30. When I said that I thought DROS was $25, he said that they were entitled by DOJ to charge up to $30 for DROS. I knew that meant they were making $5 on it. That doesn't bother me as much as paying tax on something that I'm not required to.