Fees Question(s)

[2PaperTigers]

Hello there folks,

Okay, so I need just a check on what fees are due given 3 different cases.

(1) I purchase a firearm locally as a Private Party Transfer.

(2) I purchase a firearm from a non-ffl out of state that gets shipped here.

(3) I purchase a firearm from an ffl out of state that gets shipped here.

Thank you.

[Toby's Tactical]

(1) Limited by state to $35.
(2) $25 DROS plus whatever the dealer wants to charge. Make sure the dealer will accept from a non-FFL as some have policies against it.
(3) Same as 2.

[2PaperTigers]

Is sales tax dependent on whether the FFL decides to collect it, even if it is a PPT?

[naeco81]

PPT won't collect sales tax. Importing a gun as (2) or (3) will require sales tax. Every FFL will collect it.

[2PaperTigers]

Awesome, thank you both for the expeditious responses.

[kemasa]

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

The FFL is required to submit the sales tax for out of state purchases, but not all FFLs follow the law, but they will owe the money, with interest and penalty if they get audited by the BOE. There is no law which requires the FFL to collect the sales tax, just for the FFL to pay it, so typically FFLs collect it so that it does not come out of their pocket. If the out of state FFL has a CA presence, then they can collect the sales tax and also owe the sales tax on the CA FFL's transfer fee (which they don't know what the fee is nor do many places know that they owe the money as well).

The CA PPT is $25 for the DROS and a max of $10 for the FFL. It can not be represented as a single government fee, a detail, but important so as to follow the law.

[hakuna]

If the gun is shipped to the FFL without a receipt, a common occurrence, what is the basis I use to determine the sales tax? Can I require the customer show me the receipt from the out of state shipper or do I just have to take their word on what they paid to determine the sales tax owed?

Gary

[kemasa]

If it is from a auction site, ask for the auction number. You can ask for a receipt from anyone and if it seems legit, then use that. You can base the value on the current selling price, which might be higher than MSRP, or you can use the MSRP. You could use a value which you are sure is greater than the amount the person paid, just to be safe. You can also refuse to do the transfer until you get proper documentation since you, the FFL, is liable for the sales tax.

[hakuna]

Whoops, I found the answer in the FAQ....from Kemasa of course!

http://www.calguns.net/calgunforum/showpost.php?p=7474944&postcount=78

Thanks.

[hakuna]

Whoops again, an almost simultaneous post! Thanks much on this one.