When CA FFLs should collect SALES TAX from consumers.

[kemasa]

Yeah, it should, but things change over time, so you need to read the whole thread.

[kemasa]

Also read the second post :-).

[BerettaFan]

interesting ....

[CifaldiPrecision]

Looked through the thread and didnt see what to do in this situation.

Customer walked into a store in Washington and bought a firearm. Firearm is being sent to me for transfer to purchaser legally. In essence no different than an online purchase. However Washington store charged him sales tax. Does this effect or not effect our collecting of ca sales tax?

[EBR Works]

Looked through the thread and didnt see what to do in this situation.

Customer walked into a store in Washington and bought a firearm. Firearm is being sent to me for transfer to purchaser legally. In essence no different than an online purchase. However Washington store charged him sales tax. Does this effect or not effect our collecting of ca sales tax?

The WA store should not collect tax on a shipped transfer. CA tax is due only.

[kemasa]

You still need to collect CA sales tax. The WA store should not have charged him sales tax. It is really a business to business transfer, just like if he happened to call the place and paid for it over the phone.

[CifaldiPrecision]

When CA FFLs should collect SALES TAX from consumers.

That is exactly how I understood it too. I just wanted confirmation. I emailed them already.

Thank you,
Brett C.
IronworksTactical.com - owner

[CifaldiPrecision]

So a little follow up. Got a phone call from them today trying to say because he walked in to pay its a wa purchase and not to worry because the receipt says he paid wa state tax already he won't be required to pay ca state tax. I told them that want correct and explained it's the same as if he paid over the phone. It's still be delivered to him in ca through an FFL.


Brett C.
IronworksTactical.com - owner

[kemasa]

It is not a WA sale as it was not given to him. It can take a bit to get them to understand. I went through that with a customer who stopped by shop in another state. They did end up understanding in the end.

[CifaldiPrecision]

It is not a WA sale as it was not given to him. It can take a bit to get them to understand. I went through that with a customer who stopped by shop in another state. They did end up understanding in the end.

Bass pro stepped in and told the customer they would do it as it's a grey area and no ca tax would need to be collected. Uh sure that's on them. I still think this should be treated as kemasa explained.


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[kemasa]

Bass pro stepped in and told the customer they would do it as it's a grey area and no ca tax would need to be collected. Uh sure that's on them. I still think this should be treated as kemasa explained.

That is funny as it is not a gray area. The CA BOE says that the CA FFL has to collect sales tax on a firearm if it is coming from out of state and the business does not collect CA sales tax.

The buyer did not take possession when out of state as the firearm can not be transferred to them.

Yeah, an employee can say that they will do it because things won't come down on the employee, but on the business owner.

[CifaldiPrecision]

I agree. I wrote the boe also and will post up what they say once it comes back.


Brett C.
IronworksTactical.com - owner

[mkasda]

Confirming sales tax is collected on price of firearm, shipping to FFL (from out of CA), and FFL transfer fee. The only thing BOE changed guidance on was eliminating the sales tax on $25 DROS fee.

[kemasa]

Yes, for an out of state transfer.

For in-state, the selling FFL is responsible for collecting the sales tax on the transfer dealer's FFL fee, as well as on everything else.

[CifaldiPrecision]

Ok one more that I may have missed here. A firearm that is used and being transferred in state. For instance seller is in nor cal. They ship an FFL the gun directly so purchaser in so cal can do transfer through them. This is technically a person to person transfer so no tax but does it change since the FFL has go run it as a normal sale through the DROS system? I would think that wouldn't change anything because the FFL wasn't involved in negotiating the price, finding the buyer/seller etc.


Brett C.
IronworksTactical.com - owner