Tax on DROS

[M1NM]

I was charged tax on the $10.00 portion of the DROS - new rule or FFL error?

[kemasa]

There is no $10 portion of the DROS. The DROS is $25. The FFL fee for a PPT is $10, otherwise the FFL can charge what they want for non-PPTs.

If the firearm is not subject to sales tax, then neither is the FFL fee.

[DevilDawgJJ]

So DROS fee, DOJ safety fee, handling fee, and DOJ EQ fee is all taxable? In other words, I would pay tax on $30, plus the total cost of the firearm?

[joe_gman]

There is no tax on the DROS as per the DOJ's website

May I charge sales tax on the DROS fees?
No. On January 1, 1999, the state Board of Equalization ruled that the DROS fees are not subject to retail sales tax. Firearms dealers licensed pursuant to Penal Code section 12071 shall not charge sales tax on the DROS fees. Questions regarding firearms transfer fees can be directed to the DOJ through this website or by calling (916) 263-4887. Questions regarding sales tax can be made to the California Board of Equalization at its website [url]www.boe.ca.gov.[url]

[joe_gman]

Some dealers, like Turners charge a dealer's fee. (Turners charges $5). Turners charges sales tax on that fee. It should not be a state fee.

[M1NM]

On a FTF transfer at Grant Boys the DROS was $25 - and I was charged a tax on state set $10 dealer fee - is it a legit tax or just a way to get another buck?

[DevilDawgJJ]

Some dealers, like Turners charge a dealer's fee. (Turners charges $5). Turners charges sales tax on that fee. It should not be a state fee.

The DROS fee ($19) is not taxable, but the "fees," however they want to label it, is?

[lorax3]

I was charged a tax on state set $10 dealer fee - is it a legit tax

No. Assuming it was a PPT, should have been an even $35.

Although possible it was an oversight, unless the register software is property setup the computer may try and add tax (like it does for normal retail transactions).

[kemasa]

The FFL fee is only taxable if the firearm is subject to sales tax.