Unconfigured Ad Widget

Collapse

Another question on sales tax????

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • forkliftfred
    Member
    • Jan 2010
    • 166

    Another question on sales tax????

    I just purchased a used rifle from a fellow Calgunner. I'M in NorCal, seller in SoCal so it was shipped to My FFL. I was surprised when He charged Me sales tax saying it's a new law. This is the first time I have heard of sales tax being charged on a used item of any kind in a sale of personal property between 2 private parties. Other threads I have read here seem to imply that either it only applies to new guns and/or guns shipped into CA from out of state. Can Someone clarify this for Me please? Thank You.
  • #2
    kemasa
    I need a LIFE!!
    • Jun 2005
    • 10706

    Ignoring aspects of the BOE which appear to be illegal, a firearm from a private party in CA is not subject to sales tax, but it needs to be documented that it is a private sale, an occasional sale and not from a business (it can be shipped through a business, but not a consignment). Also, if the FFL gets involved in finding the buyer/seller or the price, then sales tax would be due.

    The FFL can call the BOE to confirm that. Currently the BOE has changed their previous view regarding firearms from out of state private parties, but the law has not changed. In talking to some people, this is being worked on to correct the BOE.
    Kemasa.
    False signature edited by Paul: Banned from the FFL forum due to being rude and insulting. Doing this continues his abuse.

    Don't tell someone to read the rules he wrote or tell him that he is wrong.

    Never try to teach a pig to sing. You waste your time and you annoy the pig. - Robert A. Heinlein

    Comment

    • #3
      eltee
      Senior Member
      • Jul 2008
      • 897

      SO, currently, a private party sale from out of state DOES require the Ca. FFL to tax the buyer? I can't keep up. 8>/

      Comment

      • #4
        Munk
        Senior Member
        • Jun 2010
        • 2124

        Originally posted by eltee
        SO, currently, a private party sale from out of state DOES require the Ca. FFL to tax the buyer? I can't keep up. 8>/
        As of right now, that seems to be the BOE's position. Their most recent letter about it even says so.

        I'm practically glued to this forum to find out if the BOE will ever get its head out of its *** on this issue.
        Originally posted by greasemonkey
        1911's instill fairy dust in the bullets, making them more deadly.

        Comment

        • #5
          kemasa
          I need a LIFE!!
          • Jun 2005
          • 10706

          Originally posted by eltee
          SO, currently, a private party sale from out of state DOES require the Ca. FFL to tax the buyer? I can't keep up. 8>/
          Well, it depends. I made a mistake of asking the CA BOE and they directly replied to me saying that sales tax was to be collected on private party out of state transfers, BUT that conflicts with a letter I received in 2009 and I asked how that can be due to no laws changing. This means that if the FFL has not been directly told and has the 2009 letter, which I posted here, then it is reasonable for them to not collect sales tax. If the FFL is aware of the "new" view, then they would need to collect sales tax.
          Kemasa.
          False signature edited by Paul: Banned from the FFL forum due to being rude and insulting. Doing this continues his abuse.

          Don't tell someone to read the rules he wrote or tell him that he is wrong.

          Never try to teach a pig to sing. You waste your time and you annoy the pig. - Robert A. Heinlein

          Comment

          • #6
            OniKoroshi
            Senior Member
            • Sep 2011
            • 1321

            From what i understand PPT (FTF) transfers are exempt. Did seller ship FROM an FFL? If yes, then from what I understand tax has to be charged since its a FFL to FFL (not private to FFL).

            Comment

            • #7
              kemasa
              I need a LIFE!!
              • Jun 2005
              • 10706

              Originally posted by OniKoroshi
              From what i understand PPT (FTF) transfers are exempt. Did seller ship FROM an FFL? If yes, then from what I understand tax has to be charged since its a FFL to FFL (not private to FFL).
              This is not correct, although is often the case. In the case of a PPT, it is only exempt from sales tax if the FFL does not get involved in finding the buyer/seller and does not get involved in the sales price. A consignment of a handgun not on the certified list is transferred as a PPT since it needs to be exempt from the certified list, but since the FFL got involved with the price and finding the buyer, sales tax is due.

              I don't know that the questions has been asked of the BOE regarding shipping through a FFL, but I don't think that would change things since the person selling it is a private party and the FFL is only acting as a shipper and not getting involved in the sale. If it were claimed that going through a FFL would make it subject to sales tax, then just going through the transfer FFL would qualify and make it subject to sales tax since it would be coming from a FFL. This is not the case though.
              Kemasa.
              False signature edited by Paul: Banned from the FFL forum due to being rude and insulting. Doing this continues his abuse.

              Don't tell someone to read the rules he wrote or tell him that he is wrong.

              Never try to teach a pig to sing. You waste your time and you annoy the pig. - Robert A. Heinlein

              Comment

              • #8
                191145ACP
                Junior Member
                • Aug 2011
                • 64

                Originally posted by forkliftfred
                I just purchased a used rifle from a fellow Calgunner. I'M in NorCal, seller in SoCal so it was shipped to My FFL.
                Inner State transfer, Sales Tax, I don't think so. The conversation I had with BOE, and the letter from last November states in the second paragraph, "....to a California purchaser for an out-of-state seller........"

                Am I missing somthing?
                Mr. Lynn Ryle
                L&L Gunsmithing
                Practical Gunsmithing

                LLGun@verizon.net
                www.LLGunsmithing.com

                Comment

                • #9
                  forkliftfred
                  Member
                  • Jan 2010
                  • 166

                  I purchased the rifle from a private party, fellow calgunner, in So. Cal. who shipped it to My FFL in Nor. Cal. Who charged Me sales tax. He also increased His charge for handling the transfer,for the second time in 1 year, So I will be looking for an FFL with more reasonable prices for transfers in the Napa or Lake Co. area. If the sales tax is appropriate I sure don't blame the FFL but just reading through this thread, it's obvious that there is a lot of confusion on the subject. About 8 months ago I sent a scope to Leupold in Oregon to have a Boon and Crockett ret. installed, included a check for $110. and 2 weeks latter they call Me to ask for another $10. +or- for CA sales tax. I assume that most of that $110. was labor and as such was probably not subject to sales tax even if it is appropriate for an out of state co. to be collecting fot CA.

                  Comment

                  • #10
                    kemasa
                    I need a LIFE!!
                    • Jun 2005
                    • 10706

                    Sales tax is not required to be collected for private firearms sales within CA. From outside is an issue, which I understand is being worked on, but until someone hits the BOE over the head with a legal 2x4, some FFLs will have to collect sales tax.

                    As I understand it, if an item is sold and installed, then sales tax has to be collected on the full amount, whether it is by you or the company. If the company has a presence in CA, then they have to collect it.
                    Kemasa.
                    False signature edited by Paul: Banned from the FFL forum due to being rude and insulting. Doing this continues his abuse.

                    Don't tell someone to read the rules he wrote or tell him that he is wrong.

                    Never try to teach a pig to sing. You waste your time and you annoy the pig. - Robert A. Heinlein

                    Comment

                    • #11
                      deadsea
                      Junior Member
                      • May 2011
                      • 98

                      I just purchased a used Sig P228 from out of state, So I am looking for a reliable FFL with reasonable prices for transfers in the LA/South Bay area.

                      Thanks.

                      Comment

                      Working...
                      UA-8071174-1