Tax on the purchase price?

[rumblebee]

I recently bought a new rifle (out of state..from Buds online) and had it shipped to my local FFL......When I went in to FFL for DROS\etc, I was told that I need to pay the CA tax on the amount the rifle was bought for.

Is the above correct? if so, Why would I need to pay CA tax if it was bought out of state?

Thanks

[PolishMike]

A lot of dealers charge for sales tax.

In the end you ARE supposed to pay sale tax for anything you buy online.

[rumblebee]

Thanks for the clarification, PM

A lot of dealers charge for sales tax.

In the end you ARE supposed to pay sale tax for anything you buy online.

Too late for that, as the FFL rcv'd the receipt for the non 10 dollar price tag!

so tell them you bought it for a 10 dollars

[kemasa]

A CA FFL is required to collect sales tax on firearms which come from a business if that business does not have a presence in CA and collects the sales tax. If the price that you claim is absurd and the FFL gets audited, then there is going to be a problem and most likely it will be with the FFL, but if you provided false documents in order to evade tax, then you could have a problem as well.

If you buy from a private party, it is an occasional sale and the person does not have a business, then no sales tax is required.

CA Sales Tax Firearms Information 495.0843 & 495.0848

http://www.boe.ca.gov/business/Vol2/suta-q-s.pdf

[rumblebee]

Very good info (thank you) and correct applicable sales tax was paid by myself.

A CA FFL is required to collect sales tax on firearms which come from a business if that business does not have a presence in CA and collects the sales tax. If the price that you claim is absurd and the FFL gets audited, then there is going to be a problem and most likely it will be with the FFL, but if you provided false documents in order to evade tax, then you could have a problem as well.

If you buy from a private party, it is an occasional sale and the person does not have a business, then no sales tax is required.

CA Sales Tax Firearms Information 495.0843 & 495.0848

http://www.boe.ca.gov/business/Vol2/suta-q-s.pdf

[ParallaxTactical.com]

Our firearms transfer policy is located on the main page of our website on the top left.

Here is the direct link.

Thanks!

[tenpercentfirearms]

The BOE considers the FFL the retailer and as such they have a choice to pay the sales tax for you or collect reimbursement for the sales tax from you and still pay it.

Even if the FFL didn't collect it, you are supposed to claim any use tax on your income tax. When the FFL collects it as sales tax, then you don't have to worry about it anymore.

My company will not be assuming the tax liability of our customers on transfers. It simply isn't worth it. Some FFLs will. Do what you feel you have to do, transfers are not my bread and butter, they are more of a service to my customers.

[jtmkinsd]

The BOE considers the FFL the retailer and as such they have a choice to pay the sales tax for you or collect reimbursement for the sales tax from you and still pay it.

Even if the FFL didn't collect it, you are supposed to claim any use tax on your income tax. When the FFL collects it as sales tax, then you don't have to worry about it anymore.

My company will not be assuming the tax liability of our customers on transfers. It simply isn't worth it. Some FFLs will. Do what you feel you have to do, transfers are not my bread and butter, they are more of a service to my customers.

I'm wondering why nobody has filed litigation in this matter...BOE arbitrarily declares a transfer FFL the "retailer" simply because they hand them the firearm. I don't buy it and sell it, I don't collect tax...it's as simple as that. Trying to say I have to collect tax on an item I have no way of knowing what the purchase price was is ridiculous. IMHO BOE is just trying to shift the burden of collecting tax on internet purchases to someone they can bully around and threaten with audits and such. IMHO it's a constitutional violation of interstate commerce. But that seems all the rage in Sacramento these days.

[dachan]

I'm wondering why nobody has filed litigation in this matter...BOE arbitrarily declares a transfer FFL the "retailer" simply because they hand them the firearm. I don't buy it and sell it, I don't collect tax...it's as simple as that. Trying to say I have to collect tax on an item I have no way of knowing what the purchase price was is ridiculous. IMHO BOE is just trying to shift the burden of collecting tax on internet purchases to someone they can bully around and threaten with audits and such. IMHO it's a constitutional violation of interstate commerce. But that seems all the rage in Sacramento these days.

If you have no way of knowing what the purchase price was (even included receipts may not reflect the true puchase price), why not assume $.10, collect a penny for the BOE (thereby indicating you are aware of the BOE directive) and state on your transfer liability waiver that it is customer's responsibility to correct any difference when declaring Use Tax on their state income tax return?

[jtmkinsd]

If you have no way of knowing what the purchase price was (even included receipts may not reflect the true puchase price), why not assume $.10, collect a penny for the BOE (thereby indicating you are aware of the BOE directive) and state on your transfer liability waiver that it is customer's responsibility to correct any difference when declaring Use Tax on their state income tax return?

I couldn't see myself explaining a 10 cent purchase price to anyone with a straight face

[yzErnie]

Because the BOE rules say if no receipt is present the "fair market value" applies. As much as I would like to dfo such a thing, I doubt the $.10 offering would fly with them.

[kemasa]

In the case of a firearm, the actual sale occurs when the paperwork is done, not when the payment is made. That is how the BOE gets away with it.

[jtmkinsd]

In the case of a firearm, the actual sale occurs when the paperwork is done, not when the payment is made. That is how the BOE gets away with it.

Completely an arbitrary statement by the BOE...in reality the "sale" has already taken place when the gun shows up at my door...As a transfer agent, I never take "ownership" of the gun bought online or over the phone, I never have "title" to it, which is a necessary requirement normally. Title to the firearm goes from retailer, to purchaser...Just because I hold the firearm for ten days BOE wants to call me a "retailer". It's BS...with that line of thinking UPS and FedEx should be collecting sales tax on all out-of-State purchases because the "sale" isn't complete until someone signs for the box.

[kemasa]

Certain items, like firearms, have a specific transfer process. Ownership does not change until the paperwork, such as the DROS, 4473, etc. are completed.

When you receive a firearm, you enter it into your bound book and that means that you basically own it at that point. If a person pays for a firearm, but are prohibited and the firearm can not be transferred to them, did they even "own" the firearm? You say that "Title to the firearm goes from retailer, to purchaser", so please explain how the title changes just because someone pays for it? If I buy a firearm for you and you fill out the paperwork: Did I own it? For how long? How did you suddenly own it if you did not pay for it?

UPS and FedEx are transporting items, not filling out paperwork to transfer ownership.

[WTSGDYBBR]

so tell them you bought it for a 10 dollars

I agree with you this is BS. If I buy a rifle out of state I declare I paid 5 bucks for it. If I buy ammo out of state I'm not going to pay sales tax . Dealers should leave it up to the end use to do what they decide to do make a waver .