When CA FFLs should collect SALES TAX from consumers.

[tenpercentfirearms]

It appears in the tax world, old letters don't mean much. It might be time to start collecting sales tax on all of my out of state transfers (except C&R).

[kemasa]

I suspect that the old letter would protect you, UNLESS it can be shown that you were informed of the new changes, but you can still have problems due to that. Part of the problem is that this forum can be used to show that you were informed of the change.

The BOE should be required to inform businesses of "changes", especially when the law does not change, only their view. I have to wonder if their view would be upheld since the law does not specify the things that they are claiming, but the bottom line is that the risk is not worth it.

The whole thing is a mess.

[jksupplyco]

The whole thing is a mess.

One more rediculous hurdle for Ca firearms dealers and consumers.

[socal425]

So my FFL just received my Front Sight "free" gun offer that included an invoice showing an MSRP of $540. Am I required to pay sales tax even though it was a free offer and no purchase transaction took place?

[kemasa]

As I understand it, it is a gift, which is not subject to sales tax. I think that Front Site has some documentation on that aspect that they can give to your FFL.

[tenpercentfirearms]

So what about intrafamilial transfers from out of state. They are a gift, but they would be taxable since the BOE considers me the retailer correct?

[EBR Works]

Gifts are not taxable.

[tenpercentfirearms]

Gifts are not taxable.

Gifts are taxable by the purchaser.

(a) GIFTS. Persons who make gifts of property to others are the consumers of the property and the tax applies with respect to the sale of the property to such persons.

So if the gift has to go through my store, who is the purchaser? Further, again the state doesn't care who pays the sales tax, only that I collect and remit it. I think I am going to have to e-mail them.

[kemasa]

I previously asked the question with regards to sales tax for a gift coming from out of state and the BOE responded that CA sales tax was not due.

The buyer would be responsible for the sales tax where it was purchased. In the case of donations, such as for an event, sales tax would not be due UNLESS the item is personally delivered to CA. If it was shipped, then CA sales tax would not be due.

[Mrs Rabbit]

Soooo, after a few hours and the overwhemling desire to slam my head on my desk a few times, I have one question.

Example: I am shipped a gun for dros etc purchased by my customer from an out of state dealer. I really don't see the 'issue' that some dealers have with this. Takes 10 minutes to compare serial numbers/ check the roster/A&D it and pop it in my safe. Anyway... The above mentioned customer comes in for dros etc assuming the firearm is exactly what he expected etc. Now, I go to ring up his 'sale'. How do I show the invoiced price to tax?

My thoughts: Put that gun in my system for the price he paid making it taxable, then discount that amount? I need to show in my system that he paid the tax but obviously I didn't take in those monies.
or do I simply calculate the tax amount and enter it as an 'extra' charge?

I agree with the majority here, this one issue regarding the BOE is more 'difficult' to interpret than our Cali gun laws.

[kemasa]

It really depends on your system and how it need to be entered.

Yeah, the BOE is worse, especially if you are a CA FFL and sell and ship a firearm to a CA FFL since you are responsible for the sales tax on the transfer fee of the other FFL.

[Eddy's Shooting Sports]

Soooo, after a few hours and the overwhemling desire to slam my head on my desk a few times, I have one question.

Example: I am shipped a gun for dros etc purchased by my customer from an out of state dealer. I really don't see the 'issue' that some dealers have with this. Takes 10 minutes to compare serial numbers/ check the roster/A&D it and pop it in my safe. Anyway... The above mentioned customer comes in for dros etc assuming the firearm is exactly what he expected etc. Now, I go to ring up his 'sale'. How do I show the invoiced price to tax?

My thoughts: Put that gun in my system for the price he paid making it taxable, then discount that amount? I need to show in my system that he paid the tax but obviously I didn't take in those monies.
or do I simply calculate the tax amount and enter it as an 'extra' charge?

I agree with the majority here, this one issue regarding the BOE is more 'difficult' to interpret than our Cali gun laws.

I use quick books point of sale and what I'd was to create a non-inventory item that is not taxed and called it "sales tax on transfer". It is mapped to a holding account I created in quick books. When I file my return to BOE I simply run a report on monies collected in this account and list them on the return as "additional tax collected".

[Mrs Rabbit]

Thank you Greg,

I use Quickbooks POS as well. Hope you do not mind me 'borrowing' your way of doing this.

[Eddy's Shooting Sports]

Thank you Greg,

I use Quickbooks POS as well. Hope you do not mind me 'borrowing' your way of doing this.

Glad I could help. QB POS can be a bit frustrating for me. I'm still learning the ins and outs after 15 months using it.

What I'm really waiting for is Coloseum Software to release the new version of their AIME bound book program. It is supposed to integrate with QB POS. This would sure reduce the data entry time when setting up a new customer.

Do you have any special tricks you use?

Cheers!

Greg

[Mrs Rabbit]

Special tricks? Does turning it on and hoping it works count? or coming here and searching for other dealer's trial and errors? j/k... kinda, this forum has been a godsend for me.

We have only been open for 3 weeks now. Doing well but still getting accustomed to how everything has to work etc. Good thing I learn really fast. My husband is the 'go to' guy for the more detailed questions but I'm able to hold my own in 'general' questions and I manage the orders etc. Love it.

Kelly, AKA Mrs Rabbit.