Tax on a PPT within CA?

[Glockrocks]

Recently I purchased a long gun from a fellow CG'er (not an FFL) who sent it to my local FFL to complete the transfer. Am I supposed to be taxed on the purchase price of the long gun? I searched and found out of state transfers into California should be taxed, but nothing on transfers within state.

[bill_k_lopez]

Any sale of personal property in Ca is subject to Ca sales tax, that is the law.

When you buy something at a garage sale, technically the seller is responsible for collecting sales tax on the items they sell.

Because you had a firearm shipped to an FFL, and the state of Ca strong arms FFLs into collecting sales tax, they are going to charge you the sales tax.

[Glockrocks]

Thanks! I should have gave a low ball price had I known I would be taxed on it

[lorax3]

Any sale of personal property in Ca is subject to Ca sales tax, that is the law.

When you buy something at a garage sale, technically the seller is responsible for collecting sales tax on the items they sell.

Have a cite for this? The link you posted only deals with retail sales, and both publications from the BOE and CA Tax Code says "occasional" sales are tax-exempt .

See BOE Publication 61, Sales and Use Taxes: Exemptions and Exclusions .

A person holding two garage sales with no other sales in any 12 month period in which the garage sales are held are regarded as making exempt occasional sales

I searched and found out of state transfers into California should be taxed, but nothing on transfers within state.

The FFL should not be collecting tax if the firearm came from a private party, regardless of inter/interstate. Just because it is being DROS'ed a dealer transfer does not necessarily mean the FFL need collect sales tax.

[Glockrocks]

Well that's what I thought. I don't recall my friend paying tax on a handgun I sold him, but that was 15yrs ago and wasn't sure if there had been changes since then.

[kemasa]

The FFL should not be collecting tax if the firearm came from a private party, regardless of inter/interstate. Just because it is being DROS'ed a dealer transfer does not necessarily mean the FFL need collect sales tax.

While this is true in theory, the CA BOE changed their view, even though the law did not change, and now sales tax is to be paid from firearms coming from out of state with the exception of C&R handguns from a private party, which is an occasional sale, not from a business and the buyer has a C&R FFL. The excuse the BOE is using is that Federal law requires the firearm go through a FFL and that somehow makes it subject to sales tax.

For in-state sales, it is not subject to sales tax if it is from a private party, an occasional sale and not from a business (through is not from).

[Gio]

For in-state sales, it is not subject to sales tax if it is from a private party, an occasional sale and not from a business (through is not from).

Someone better tell Rifle Gear that, I sent a rifle to a so-cal gunner and they were charged sales tax after they received it from my ffl.

[kemasa]

They can ask the BOE. It needs to be documented, but some places now just charge sales tax to be safe, rather than doing the right thing.

[Glockrocks]

Good to know, next time I will be more wise in selecting an FFL to handle the transfer.

[GMG]

A PPT is when two people meet FTF to do the transfer. If you ship a gun to an FFL to be transfered to the new buyer it is not considered a PPT. There for tax is charged.

If I'm wrong let me know.

[jkrew619]

I just did a PPT today, no tax. Just paid $35.00 for DROS and that's all. Now, 10 day waiting game for me.

[kemasa]

BTW, A PPT can be subject to sales tax if the FFL finds the buyer or seller or gets involved with the price.

[lorax3]

While this is true in theory, the CA BOE changed their view, even though the law did not change, and now sales tax is to be paid from firearms coming from out of state with the exception of C&R handguns from a private party, which is an occasional sale, not from a business and the buyer has a C&R FFL.

I did not know this. Do we have an letter on this, or just verbal BOE correspondence?

[Steph]

BTW, A PPT can be subject to sales tax if the FFL finds the buyer or seller or gets involved with the price.

I don't see how it's any of their business what money is being transferred. And what if there is no money being transferred? What if it's an exchange between husband and wife? Or a trade? Or even a trade for services (my gun for your plumbing)? Pretty hard to charge tax on that.

[kemasa]

I did not know this. Do we have an letter on this, or just verbal BOE correspondence?

There was a letter sent out to all FFLs. There is a thread regarding this in the master FAQ regarding collecting sales tax. So, it is written.