When CA FFLs should collect SALES TAX from consumers.

[ugimports]

I worked for Bright Spot Pawn, the DROS fee was 30.00, 25 goes to the state, 5 goes to the dealer. Those fees are set by the state. However the dealer can charge a processing fee for receiving a firearm that they did not sell. Prices for that ranged from 50 per - 125 per firearm. There is a lot of work that goes into receiving a firearm. You have to check it in, put it in your gun book, DROS processing time 15-20 mins, double check the 4473 for errors then when you pick up check the firearm out and dispose the transaction in the gun book. Each firearm has around and hours worth of time invested and that's only basic stuff.... If your going through an audit at the time it could easily tripple the amount of time spent having to handle everything multiple times with the auditing agent.

Did Bright Spot Pawn advertise the DROS fee as $30 or $25 with a $5 dealer fee?

Former is not legal - as it is mis-representing the $5 dealer fee as a state mandated fee.
Latter is legal - because it distinguishes the state $25 fee vs $5 dealer fee.

ETA: Relevant PC referenced here: https://oag.ca.gov/firearms/pubfaqs#13

[ugimports]

Also the state had mandated fixed amounts the dealer charges... it was in their regulations booklet for FFL's.... The only fee that was dealer set is the one for shipped in weapons that were not bought from the FFL directly.

The only fixed amounts for FFLs are PPTs @ $10 and the actual DROS Fee - $25. There is no other fixed fee in regards to DROS/transfers.

Essentially they charge everyone +$5 for DROS (which is fine) but make people believe it's part of DROS which it is not. They at least appropriately break it out, but it is not appropriate to call it the DROS fee. Unless their poster said something like "DROS Process = $25 State DROS fee + $5 Dealer Fee" vs making people believe the DROS fee includes a fixed $5 dealer fee.

In any case, I don't really care what they do, but just wanted to clarify for those non-FFLs reading this thread that DROS fee is always $25 (unless laws change). Anyone saying otherwise is not being honest with their customers.

[Gowking]

Poster on the wall said, DROS $30 then broke it down State/Dealer, also said PPT Fees and breakdown, then had dealer processing fee for non store bought weapons that were shipped in.

So if a customer bought an in stock firearm would they be paying that $30 fee?

[kemasa]

Poster on the wall said, DROS $30 then broke it down State/Dealer, also said PPT Fees and breakdown, then had dealer processing fee for non store bought weapons that were shipped in.

That is a clear misrepresentation of the DROS fees and it is illegal. "Breaking it down" does not make it acceptable since the DROS fee is NOT $30, it is $25.

Also the state had mandated fixed amounts the dealer charges... it was in their regulations booklet for FFL's.... The only fee that was dealer set is the one for shipped in weapons that were not bought from the FFL directly.

Incorrect, the law says that the MAXIMUM a FFL can charge is $10 for a CA PPT, it does not mandate it, it only places a limit. There is NO requirement that a FFL charge anything.

[CA Gun Laws Suck]

My question is: if a customer is purchasing a firearm from an out of state retailer is the FFL fee taxable?

I just read through the 9 pages of this thread and from everything I read it says yes. I found the link to a BOE publication from 2011. I want to confirm that it is still correct.

[kemasa]

My question is: if a customer is purchasing a firearm from an out of state retailer is the FFL fee taxable?

I just read through the 9 pages of this thread and from everything I read it says yes. I found the link to a BOE publication from 2011. I want to confirm that it is still correct.

Yes.

[CA Gun Laws Suck]

I have a customer who purchased a lower from an out of state dealer/manufacturer. The location on their invoice is Nevada and they collected sales tax. When I received the lower I collected sales tax, because we are required to. When I contacted the company, they stated that they collected sales tax and still operate in CA so we did not need to. Basically they said, "it's not an issue". Now my customer has paid tax twice and I am trying to cover myself and resolve this issue. Thoughts?

[Gowking]

I have a customer who purchased a lower from an out of state dealer/manufacturer. The location on their invoice is Nevada and they collected sales tax. When I received the lower I collected sales tax, because we are required to. When I contacted the company, they stated that they collected sales tax and still operate in CA so we did not need to. Basically they said, "it's not an issue". Now my customer has paid tax twice and I am trying to cover myself and resolve this issue. Thoughts?

Ask them for a copy of their California seller's permit. If they have one then you should refund the tax you collected on the purchase price and note that CA tax was already collected and by whom.

[kemasa]

I have a customer who purchased a lower from an out of state dealer/manufacturer. The location on their invoice is Nevada and they collected sales tax. When I received the lower I collected sales tax, because we are required to. When I contacted the company, they stated that they collected sales tax and still operate in CA so we did not need to. Basically they said, "it's not an issue". Now my customer has paid tax twice and I am trying to cover myself and resolve this issue. Thoughts?

You are only required to collect sales tax if the seller does not have a presence in CA. When you see that they collected sales tax, you need to ask if they made a mistake and collected sales tax from their state or whether they collected CA sales tax. If they are the retailer, they are required to collect the sales tax on the FFL transfer fee. You can collect it if you feel nice, but I am not sure if it would help them.

You should refund the customer the sales tax that you charged on the firearm as you are not the retailer.

[CA Gun Laws Suck]

My issue was that their FFL and invoice is in Nevada and they say that they operate out of CA still. If that doesn’t change anything, I will call my customer today and get him his refund.

[kemasa]

It doesn't matter, if they have a presence in CA, then they have to collect sales tax and they are considered the retailer, not you.

[CA Gun Laws Suck]

That answers my questions then. Thank you!

[patriot_man]

So I am in a bit of a conundrum.

I bought a rifle from a store in AZ and it is going to Audiophil to be converted. Audiophil also happens to be in AZ so the store is charging me sales tax since it is being shipped to another AZ address.

Does this exempt me from paying tax during DROS when the rifle arrives in CA? My FFL states that he needs to collect tax when it arrives.

[kemasa]

So I am in a bit of a conundrum.

I bought a rifle from a store in AZ and it is going to Audiophil to be converted. Audiophil also happens to be in AZ so the store is charging me sales tax since it is being shipped to another AZ address.

Does this exempt me from paying tax during DROS when the rifle arrives in CA? My FFL states that he needs to collect tax when it arrives.

The AZ transfer should be exempt as it is dealer to dealer. Audiophil should be able to provide an exempt letter or whatever they use there.

CA sales tax has to be paid.

[yrs]

I've read a few pages of this thread but am just getting confused with all the permutations discussed.
So, I hope I can get a direct answer for my situation.
I plan to buy a handgun from an out of state acquaintance. The handgun is on the roster (not C&R if that matters). The seller is a private individual, not FFL nor a business/retailer. I'm buying from him directly, not through any auction or online website.

Since the gun needs to be shipped into CA, there are two possible methods:
1. my friend ships directly to my FFL as a private individual (assuming my FFL accepts shipment from non-FFL individuals), or
2. he uses his FFL to ship the gun to my FFL.

If it is method 1, would I be charged sales tax by my FFL here? How about if it's method 2?
I've been getting different answers from different people lately, so I just want to get a definitive answer on whether sales tax is collected or not for out of state on roster handgun purchase from private seller.