When CA FFLs should collect SALES TAX from consumers.

[ugimports]

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.

Yes

[yrs]

Yes

Well, that sucks... But I do thank you for the definitive and quick answer.

[kemasa]

The handgun is on the roster (not C&R if that matters).

A C&R firearm from an out of state private party, which is an occasional sale and not from a business and the buyer has a C&R FFL would not be subject to sales tax, so yes, whether it is a C&R FFL can matter.

Otherwise it is subject to sales tax.

[kemasa]

Ammo sales tax questions and answers from CDTFA (used to be BOE):

F18-01-009 Sales and Use Tax Information

Reference #: F18-01-009

Thank you for your recent e-mail requesting our advice regarding the proper application of the California Sales and Use Tax Law.

You are a California Firearms Dealer (FFL) and are aware that as of January 1, 2018 ammunition purchases will have to be made through a licensed ammunition vendor unless certain circumstances exist to exclude this provision. You are seeking guidance on how sales tax applies to these transactions. In your email inquiry you ask who is required to submit the tax and is tax due on the ammunition, shipping and transfer fee under several different scenarios. You state each scenario involves a private buyer who pays the seller directly and the California ammunition dealer is only doing the transfer. Therefore, I will restate each scenario followed by my response.

Scenario 1

The ammunition is sold from an out-of-state private party seller.

Response

In situations where an out-of-state private party is selling ammunition to a California (CA) private party and they agree to the sale of the ammunition without any assistance from you (you simply process the transfer without taking title to the ammunition at any time) you would not be considered the retailer and would not be responsible for the tax. The private party seller would be liable for the tax unless the transaction was otherwise exempt. The transfer of ammunition from a private party seller located outside of CA and being shipped to a licensed ammunition vendor may be treated as an occasional sale (Regulation 1595). When a sale qualifies as an occasional sale, the shipping and transfer fee would not be subject to tax.

Scenario 2

The ammunition is sold from an out-of-state business who does not have a presence in California.

Response

For sales and use tax reporting purposes, when you transfer ammunition on behalf of an out-of-state retailerScenario 3

The ammunition is sold from an in-state private party seller.

Response

In situations where a California private party is selling ammunition to another California private party and they agree to the sale of the ammunition without any assistance from you (you simply process the transfer without taking title to the ammunition at any time) you would not be considered the retailer and would not be responsible for the tax. The private party seller would be liable for the tax unless the transaction was otherwise exempt. The transfer of ammunition from a private party seller located within California and being shipped to a licensed ammunition vendor can be treated as an exempt occasional sale (Regulation 1595). When the sale qualifies as an occasional sale, the shipping and transfer fee would not be subject to tax.

Scenario 4

The ammunition is sold from an in-state private party where both parties meet at the California Dealer.

Response

See my response to scenario 3 above.

Scenario 5

The ammunition is sold from a California registered business which collects sales tax, is the ammunition transfer taxed and if so who owes it? As well, is sales tax owed on shipping?

Response

The answer is very similar to my scenario two response. When a California registered business sells ammunition to a private party and uses your business to conduct the transfer, the California retailer is responsible for the tax on that sale. You should maintain satisfactory evidence that it was a California registered business making the sale to the private party purchaser.

The answer given is intended to provide general information regarding the application of the tax and will not serve as a basis for relief of liability under Revenue and Taxation Code section 6596.

I hope this information is helpful. If you have any further questions regarding this or any other issue, please call our Customer Service Center at 1-800-400-7115. You may also visit our website at www.cdtfa.ca.gov.

[popawoody]

With the advent of the face-to-face ammunition law now in effect, I have a question for you FFL folks. If I purchase ammunition from an out-of-state vendor and have that ammunition delivered through my local California FFL, is that FFL required to collect sales/use tax on the purchase price of the ammunition? I'm speaking of transactions completed prior to 1/1/2019, at which point I understand the game changes.

[Edit: ]
And... it appears my answer was in the post by kemasa, immediately prior to this one. Thanks!

[CSUS_CRJ]

If I purchase a good or goods in the state of CA, pay taxes on said items and ship them out of state in trade for another firearm, in other words I trade a gun for a gun, no cash involved. The new to me (used) gun shows up at a CA FFL, whilst my old gun is now gone, does the FFL charge me tax? I already got charged but called 3 other FFLs incidental to the transfer and they said they do not collect tax in a similar situation.

[kemasa]

If I purchase a good or goods in the state of CA, pay taxes on said items and ship them out of state in trade for another firearm, in other words I trade a gun for a gun, no cash involved. The new to me (used) gun shows up at a CA FFL, whilst my old gun is now gone, does the FFL charge me tax? I already got charged but called 3 other FFLs incidental to the transfer and they said they do not collect tax in a similar situation.

It would be subject to sales tax. While some might make a mistake, they are liable for the money owed to the state, along with interest and penalties. Don't blame the one for doing the right thing. You can confirm that with the BOE (now CDFTA or something) .