When CA FFLs should collect SALES TAX from consumers.

[tenpercentfirearms]

Perhaps they should charge sales tax based on where you live, even if you are out of state.

If I went out of state and decide to buy an item on a trip, to use on the trip, but brought it back with me and then continue to use it, should I be forced to pay use tax?

Should people who move here be forced to pay use tax on items recently purchased?

If you have two houses, one in CA and another in another state, should you pay sales tax if you bring an item from one house to another?

In some cases it is clear, but still not right. I should not have to pay sales tax in another state, especially if they demand I pay CA use tax when I return.

Halifax said the same thing that I did :-).

I don't make the rules, I just follow them.

http://www.boe.ca.gov/sutax/faqusetax.htm#16

16. My company assigned me to work in Portland, Oregon for nine months. When I first arrived in Portland, I purchased a personal computer and software from a local retailer. Oregon does not have a sales or use tax and I was not charged tax. Do I owe California use tax on the personal computer and software when I return to California?

You would not owe use tax on this purchase since the personal computer was used in Oregon for nine months. Tangible personal property (excluding vehicles, vessels, and aircraft) is not considered to have been purchased for use in this state when:

A person uses the item outside of California for more than 90 days after the purchase, exclusive of any shipping or storage time; or
A person first uses the item outside of California, brings it back into California within 90 days of purchase, and then uses the item outside of California for more than half the time during the next six months.

[kemasa]

Perhaps they should charge sales tax based on where you live, even if you are out of state.

If I went out of state and decide to buy an item on a trip, to use on the trip, but brought it back with me and then continue to use it, should I be forced to pay use tax?

Should people who move here be forced to pay use tax on items recently purchased?

If you have two houses, one in CA and another in another state, should you pay sales tax if you bring an item from one house to another?

In some cases it is clear, but still not right. I should not have to pay sales tax in another state, especially if they demand I pay CA use tax when I return.

Halifax said the same thing that I did :-).

[tenpercentfirearms]

Yes, but in that example the person went out of state and purchased the item, so it does not seem to me that CA is due anything at all. How does CA justify it? Just because you are a CA resident?

USE TAX must be paid even if you physically take possession out of state, but then bring it in for primary use in CA. That is exactly what the scenario and answer says. Seems pretty clear to me.

However, logically speaking, the out of state retailer should not be charging sales tax on a firearm that is being delivered out of state. I don't charge sales tax on firearms I ship out of state, even if the customer comes in and pays for it at my store. The location of delivery is what matters.

And that is what halifax's answer seems to indicate. So that makes our lives easier. If your customer wants a partial tax collection because they paid tax in another state, inform them they need to seek a refund from the out of state retailer that charged them sales tax on an out of state sale.

[Cranium]

Personally, I didn't bother asking for my tax back, it wasn't worth it (cheap gun) for the headache I'm sure I would've gotten out of it.
I just chalked it as a learning experience, and the final reason not to go to Sportsmen's Supply.

[keenkeen]

The second. We walked in to pot a shotgun, dealer asked what I paid the seller for it and charged me tax on that amount.

He is wrongoooo...

Not sure the $ amount or if it's worth it but take a look a this thread and then maybe try to get a refund?

http://www.calguns.net/calgunforum/showthread.php?t=516991

Edit:
Wait a minute...that thread just links to THIS thread that clearly states about 8 times that in the situation you describe no tax should be charged. So I guess just read this thread from the begining and you will have your facts!

[halifax]

Here is a scenario I have come accross a few times lately and I am not sure if it's been answered, but I would appreciate any help on this.

Lately, I had several customers leave the state on vacation and purchase firearms from a shop out of state, then have it shipped to me for transfer upon their return. During transfer, they provide a sales receipt indicating they paid for the gun in full at the actual shop and also paid sales tax on the firearm in the sending state. As the CA FFL in this scenario, do I still need to collect CA sales tax?

Thanks in advance!

Don't know how much this helps but it's from the BOE:

In the situation described in your inquiry, the purchaser is purchasing a firearm from an out-of-state retailer. The out-of-state retailer is transferring the firearm to your location for the purpose of processing the necessary paperwork. Since the transfer of the firearm to the customer is taking place in California, the Nevada tax is not applicable. The location where the property (firearm) is passed to the purchaser determines where the tax is due, not the location where the money changes hands. I assume the Nevada retailer is not engaged in business in this state. Accordingly, you would be liable for the sales tax on the firearm transferred to the purchaser in this state. The purchaser should contact the Nevada retailer for a refund of the Nevada tax paid in error.

[kemasa]

The second. We walked in to pot a shotgun, dealer asked what I paid the seller for it and charged me tax on that amount.

The dealer was incorrect and should contact the BOE about this.

So, in my scenario I would collect CA sales tax on a firearm which the buyer bought and paid for while out of state which includes the price of the firearm, out of state sales tax already paid on the firearm, and the cost of shipping that firearm to CA...all of which are on the customers receipt? Talk about a cluster...

I would not collect sales tax on the amount of sales tax that they paid, but on the firearm and the shipping. I would hope that you would get a receipt.

I had to explain to a store that they should not collect sales tax just because the person was standing there since they were actually shipping it to a business. They finally got it. I also told the customer that if they didn't get it, to use his cell phone to call and order it :-).

[MGM Tactical]

So, in my scenario I would collect CA sales tax on a firearm which the buyer bought and paid for while out of state which includes the price of the firearm, out of state sales tax already paid on the firearm, and the cost of shipping that firearm to CA...all of which are on the customers receipt? Talk about a cluster...

[Bobula]

The second. We walked in to pot a shotgun, dealer asked what I paid the seller for it and charged me tax on that amount.

[kemasa]

Which the whole thing makes no sense. You would think CA would want their sales tax and screw the other states.

Yes, but in that example the person went out of state and purchased the item, so it does not seem to me that CA is due anything at all. How does CA justify it? Just because you are a CA resident?

For firearms, the BOE says that the CA FFL has to collect the sales tax on the full purchase price, including shipping. There is nothing about reducing it because other sales tax has been paid and it item was not picked up in the other state.

[tenpercentfirearms]

Here is a scenario I have come accross a few times lately and I am not sure if it's been answered, but I would appreciate any help on this.

Lately, I had several customers leave the state on vacation and purchase firearms from a shop out of state, then have it shipped to me for transfer upon their return. During transfer, they provide a sales receipt indicating they paid for the gun in full at the actual shop and also paid sales tax on the firearm in the sending state. As the CA FFL in this scenario, do I still need to collect CA sales tax?

Thanks in advance!

Here is a USE TAX answer. I have no idea if it translates over to SALES TAX.

http://www.boe.ca.gov/sutax/faqusetax.htm#14

Last week while visiting relatives in Maine I purchased $200 in stereo equipment for use with my system at home in Sacramento, California. When I purchased the equipment I was charged five percent Maine sales tax. Do I owe California use tax on this purchase?

Yes, however, Revenue and Taxation Code section 6406 allows you to take a credit for sales or use tax paid to another state. Therefore, a portion of the California use tax you owe on the purchase is offset by the sales tax you paid to the retailer in Maine. Since the sales and use tax rate in Sacramento is 8.75%, use tax of $17.50 would be due on your purchase. However, after deducting the $10 in Maine sales tax you paid when you purchased the equipment, you would only owe $7.50 in California use tax on the purchase.

Note: For each purchase you can only take a credit for sales tax paid to another state up to the amount of California use tax you owe on that purchase. If you paid an amount in excess of the California use tax due on a purchase you cannot use this additional tax paid to offset the tax due on another transaction. Using the example above, if the tax rate in Maine were 10% and you paid $20 in Maine sales tax, you could not apply the $2.50 in additional tax you paid to offset California use tax you may owe on another purchase.

Which the whole thing makes no sense. You would think CA would want their sales tax and screw the other states.

[kemasa]

Here is a scenario I have come accross a few times lately and I am not sure if it's been answered, but I would appreciate any help on this.

Lately, I had several customers leave the state on vacation and purchase firearms from a shop out of state, then have it shipped to me for transfer upon their return. During transfer, they provide a sales receipt indicating they paid for the gun in full at the actual shop and also paid sales tax on the firearm in the sending state. As the CA FFL in this scenario, do I still need to collect CA sales tax?

I am not 100% sure of what the BOE would said, but they say that a firearm coming from an out of state retailer has to have CA sales tax paid on it, so the answer would be Yes, you would need to collect sales tax on it.

I have had to deal with this in the past. The out of state FFL should not be charging sales tax since the firearm is not actually being sold to the person, they are only paying for it. The firearm is being shipped to another business and the actual sale is considered to occur in CA. The out of state FFL does not show that the firearm was sold to the customer in their bound book, nor did they fill out the 4473. It is the same as if the customer called them and ordered it on the phone.

The customer should request that the money they paid for sales tax in the other state should be refunded.

[keenkeen]

I had to pay tax on the purchase price of a used gun and the $10 dealer charge for a ppt'd shotgun.

Did the dealer bring the buyer and seller together? (like a consignment) or did you just walk in with a seller you found to do a PPT?

If the first, yes, tax is collected.

If the second, no, tax is not collected.

[Bobula]

I had to pay tax on the purchase price of a used gun and the $10 dealer charge for a ppt'd shotgun.

[MGM Tactical]

Here is a scenario I have come accross a few times lately and I am not sure if it's been answered, but I would appreciate any help on this.

Lately, I had several customers leave the state on vacation and purchase firearms from a shop out of state, then have it shipped to me for transfer upon their return. During transfer, they provide a sales receipt indicating they paid for the gun in full at the actual shop and also paid sales tax on the firearm in the sending state. As the CA FFL in this scenario, do I still need to collect CA sales tax?

Thanks in advance!