Sales Tax (Again)

[TripleT]

I've got a customer that bought an expensive rifle, while he was visitng another state. He then had the rifle sent to me for transfer. The rifle came from an out of state FFL. He says he paid sales tax at the time of purchase and can produce a receipt proving it was paid. I told him it didn't matter that the CA BOE insists I collect CA sales tax and there is not a way around that and he should get reimbursed from the seller for the sales tax paid in the incorrect jurisdiction.

Next conversation was he talked to the CA BOE and the only tax owed would be the difference between what he paid to the out of state dealer and the rate CA local tax rate, if any. I asked him to produce a letter from the BOE and I'll abide by their ruling.

Anybody heard of anything remotely relevant ?

[mej16489]

I've got a customer that bought an expensive rifle, while he was visitng another state. He then had the rifle sent to me for transfer. The rifle came from an out of state FFL. He says he paid sales tax at the time of purchase and can produce a receipt proving it was paid. I told him it didn't matter that the CA BOE insists I collect CA sales tax and there is not a way around that and he should get reimbursed from the seller for the sales tax paid in the incorrect jurisdiction.

Next conversation was he talked to the CA BOE and the only tax owed would be the difference between what he paid to the out of state dealer and the rate CA local tax rate, if any. I asked him to produce a letter from the BOE and I'll abide by their ruling.

Anybody heard of anything remotely relevant ?

Not an FFL.

What he's describing certainly falls perfectly inline with the BOE stance on paying use-tax.

[halifax]

This is the response I got from the BOE when I had the same issue:

http://www.calguns.net/calgunforum/showpost.php?p=7927637&postcount=108

[Lives_In_Fresno]

Pub 112 of the BOE includes this:

Can I get credit for paying another state’s tax on my purchase?
If you were required to pay, and did pay, another state’s sales or use tax on your purchase, you may be
able to take a credit against the California use tax due. For information, please see your tax return instruc-
tions or call our Taxpayer Information Section at the number listed above.

See: http://www.boe.ca.gov/pdf/pub112.pdf

[EBR Works]

We had the same situation. After we spoke to the seller who collected tax, he called his state's tax collection entity and was told to refund the tax to the buyer, which he did.

[TripleT]

Problem solved (at least for me) XYZ shop across town tells my customer I am interpreting the law incorrectly and they would only charge the difference (if any) in sales tax. CFLC and delivery to XYZ complete = no longer my problem.

[halifax]

See: http://www.boe.ca.gov/pdf/pub112.pdf

This sounds like it would apply to the end user's use tax if they took possession of the goods out-of-state. It does not sound like it would apply to the CA dealer who is the one RESPONSIBLE for paying the CA Sales Tax.

[Munk]

Problem solved (at least for me) XYZ shop across town tells my customer I am interpreting the law incorrectly and they would only charge the difference (if any) in sales tax. CFLC and delivery to XYZ complete = no longer my problem.

Customer only pays the CA tax on the saleprice+Shipping on the gun.

As the other poster stated, the customer should get a refund from the out-of-state seller for the amount he paid them, because he should NOT have paid tax to that seller.

If you were to run into this again, I'm pretty sure you just ignore their tax paid, and charge them CA taxes on the Sale Price + Shipping. Let them sort out their own out-of-state tax mistake.

Remember; as an FFL, YOU are the one responsible for paying the taxes on the customer's transfer, you just have the added benefit of being able to pass the bill on to the customer for it.

[TripleT]

Well I am no longer the transfer FFL so as I said, not my problem. XYZ can deal with the BOE, if they ever get audited. I'm beyond fighting with customers about this stuff. If they order a firearm and don't want to pay the sales tax, there is always another FFL that will help them circumvent the law.

[Munk]

Well I am no longer the transfer FFL so as I said, not my problem. XYZ can deal with the BOE, if they ever get audited. I'm beyond fighting with customers about this stuff. If they order a firearm and don't want to pay the sales tax, there is always another FFL that will help them circumvent the law.

They aren't circumventing anything. They're just ignoring the BOE, which means the FFL will be on the hook to pay... with penalties (This IS California after all).

[gschoelles]

IMHO you report the sales dollars and pay the taxes on those sales dollars, not the sales value. So in its simplest form, you collect sales tax on the taxable dollars you have received.

[tenpercentfirearms]

IMHO you report the sales dollars and pay the taxes on those sales dollars, not the sales value. So in its simplest form, you collect sales tax on the taxable dollars you have received.

And your opinion is not what the law nor the BOE says. Sorry. You need to read this.

http://www.calguns.net/calgunforum/showthread.php?t=366781

[gschoelles]

This is how you read it but realistically the difference will go unreported and will end up pocketed in the long run.

And your opinion is not what the law nor the BOE says. Sorry. You need to read this.

http://www.calguns.net/calgunforum/s...d.php?t=366781

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[halifax]

This is how you read it but realistically the difference will go unreported and will end up pocketed in the long run.

Being that this is the FFL's Forum, can we assume you are an FFL with experience illegally "pocketing" sales tax revenue?

[gschoelles]

Excuse me? Someone needs to take his pills and try getting up on the other side of its bed.

Being that this is the FFL's Forum, can we assume you are an FFL with experience illegally "pocketing" sales tax revenue?

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