OLL being shipped from non-FFL to customer in CA.

[WhiskeyHotel2]

Guys I apologize for asking for some info on a topic that I'm sure has been covered but this is the first time I would be doing this type of transaction.

I have a potential customer (CA resident) that wants to buy an OLL off of Gunbroker from a private seller out of state and wants to ship it to me for the transfer.

Is this considered a PPT? or a would I DROS it as a regular "sale" since the selling party isn't a CA or coming in person.

Are we limited to the $35 fees we can charge as an FFL for this process?

Also I have only dealt with other out of state FFLs that sent the guns with a CFLC approval letter. Since it is not coming from an out of state FFL, how is this accomplished or can it be shipped without one legally?

I do know that since it is coming from a private seller I cant charge sales tax as I would on the purchase if it were coming from an FFL.

Any help on these topics would be greatly appreciated.

[knowyourrights]

Out of state non licensee person does not need shipping approval to send to a licensee but I would get a copy of his DL for your records.. read below

http://www.calguns.net/calgunforum/showthread.php?p=10218124#post10218124

http://www.calguns.net/calgunforum/showthread.php?t=441766

[WhiskeyHotel2]

Yeah just thought of that since I have to record who it came from in my bound book. Nor do I have to send the non licensee a copy of my FFL...they can verify my info on the FFLEZCheck site.

[ke6guj]

Is this considered a PPT? or a would I DROS it as a regular "sale" since the selling party isn't a CA or coming in person.

DROS as a regular sale. The DROS system won't let you do a PPT if the seller doesn't have CA ID/DL.

Are we limited to the $35 fees we can charge as an FFL for this process?

nope, since it isn't a PPT, no $35 limit, you can charge whatever you wish.

Also I have only dealt with other out of state FFLs that sent the guns with a CFLC approval letter. Since it is not coming from an out of state FFL, how is this accomplished or can it be shipped without one legally?

CFLC only applies if the shipper is an FFL. Per the CFLC FAQs, it states that private parties don't have to get a CFLC letter.

I do know that since it is coming from a private seller I cant charge sales tax as I would on the purchase if it were coming from an FFL.

The BOE has taken the position that any out-of-state transfers that you do, that you must collect sales tax, even if it was a private party shipment. there are threads here that talk about it in more detail.

[WhiskeyHotel2]

So we have to collect sales tax if it is coming from an FFL and/or Private Party? I thought only when from an FFL... Read that on the sticky about when to collect sales tax

[kemasa]

The BOE has taken the position that any out-of-state transfers that you do, that you must collect sales tax, even if it was a private party shipment. there are threads here that talk about it in more detail.

Except for C&R Handguns which are from a private party, is an occasional sale, not from a business and going to a CA resident which has a C&R FFL, in which case it would be exempt from sales tax.

[ke6guj]

Except for C&R Handguns which are from a private party, is an occasional sale, not from a business and going to a CA resident which has a C&R FFL, in which case it would be exempt from sales tax.

thank you for the clarification on that.

And I think it has been mentioned that any gift transfers are exempt from the recipient having to pay sales tax as well, and IIRC, that extends to raffle drawings as well. Supposedly the transferer is responsible to remit the sales tax on any such gift.

[kemasa]

thank you for the clarification on that.

And I think it has been mentioned that any gift transfers are exempt from the recipient having to pay sales tax as well, and IIRC, that extends to raffle drawings as well. Supposedly the transferer is responsible to remit the sales tax on any such gift.

Yes, that is correct. In the case of a drawing, if the company donating the item comes to CA to deliver the item, then they owe sales tax on it, but if they ship it from out of state, they don't. That is a whole other issue.

[WhiskeyHotel2]

So I will have to charge sales tax (8% here in the OC) on the purchase price plus my fee then add the $25 DROS fee....correct?

[kemasa]

Yes, since it is from out of state, you need to collect sales tax on the total price of the firearm, including shipping, and your fee. The DROS fee is not subject to sales tax.