Firearm Transfer Question

[Zamble]

I am looking to buy a rifle in the marketplace. My question is do I have to pay sales tax on it if I have it transferred to my FFL? I know I will have to pay the receiving FFL's fees. But the state tax I am unsure of. Because of the rifle is at the cost of new, but it is used. Trying to figure out the better way to go.

[ripro75]

If you buy it from a CA Retailer, they will charge you the sales tax.

[acespawnshop]

If you buy a firearm and it is NOT a private party transfer where both parties are at the FFL at the same time and are both CA residents, then it is considered a dealer sale and you pay sales tax. The gun being new or used is irrelevant.

[ugimports]

I am looking to buy a rifle in the marketplace. My question is do I have to pay sales tax on it if I have it transferred to my FFL? I know I will have to pay the receiving FFL's fees. But the state tax I am unsure of. Because of the rifle is at the cost of new, but it is used. Trying to figure out the better way to go.

Depends.

Are you buying from a private party or business?

Is it being shipped or transferred face to face with seller at your FFL?

Is the company in CA or outside of CA?

[kemasa]

I am looking to buy a rifle in the marketplace. My question is do I have to pay sales tax on it if I have it transferred to my FFL? I know I will have to pay the receiving FFL's fees. But the state tax I am unsure of. Because of the rifle is at the cost of new, but it is used. Trying to figure out the better way to go.

if the seller is a business and has a presence in CA, then they are considered a CA retailer and would have to CA collect sales tax on it, as well they are supposed to collect sales tax on the transfer fee of the FFL, but they don't know what that fee is.

If the seller is not a CA retailer, then the FFL doing the transfer is considered the CA retailer and has to collect the sales tax.

If the seller is a business from out of state, you should not pay that state's sales tax since the firearm transfer is considered business to business and is exempt from sales tax.

The only exemption is when the seller is a CA private party and that it is an occasional sale, as well that the FFL does not get involved in finding the buyer/seller or gets involved in the price of the firearm. You should have a letter documenting that it is a private sale.

If you buy a firearm and it is NOT a private party transfer where both parties are at the FFL at the same time and are both CA residents, then it is considered a dealer sale and you pay sales tax.

Incorrect. The means in which CA claims that the FFL has to collect sales tax is Federal law requiring the firearm go through a FFL. This means that if the seller is a CA resident and it is an occasional sale, it is not subject to sales tax unless the FFL gets involved finding the buyer/seller or gets involved with the price. This also applies to a CA PPT as well. A CA PPT can be subject to sales tax.

In the case of a C&R handgun where the seller is out of state, is a private party and is an occasional sale, it is not subject to CA sales if the buyer has a C&R FFL since then it is not Federal law which requires that it go through a CA FFL, but instead CA law. I have posted the letter regarding this from the BOE.

[acespawnshop]

Incorrect. The means in which CA claims that the FFL has to collect sales tax is Federal law requiring the firearm go through a FFL. This means that if the seller is a CA resident and it is an occasional sale, it is not subject to sales tax unless the FFL gets involved finding the buyer/seller or gets involved with the price. This also applies to a CA PPT as well. A CA PPT can be subject to sales tax..

Kemasa, am I incorrect in collecting sales tax on interstate transfers from a private party? Or are you saying that I wasn't entirely correct in my statement?

[kemasa]

Kemasa, am I incorrect in collecting sales tax on interstate transfers from a private party? Or are you saying that I wasn't entirely correct in my statement?

The quoted section of what you said was not correct. I was only referring to that section.

Interstate transfers are subject to sales tax, except for C&R handguns when the buyer has a C&R FFL and it is an occasional sale and from a private party.

Intrastate (within CA) transfers are not subject to sales tax if the seller is a private seller, it is an occasional sale and the FFL does not get involved in finding the buyer/seller nor the price. It does not have to be a PPT. The firearm can be shipped and not be subject to sales tax.

Does that clear things up?

[Zamble]

Sorry. It would be a private party transfer. I live in NorCal and they live in SoCal. So he would be shipping it to my FFL.

[ke6guj]

Sorry. It would be a private party transfer. I live in NorCal and they live in SoCal. So he would be shipping it to my FFL.

even though you would be buying it from a private party, it is not a CA-defined "private party transfer" since both the buyer and seller both aren't showing up to the same FFL to do the paperwork. As such, the FFL is free to charge what ever amount he wishes to facilitate the transfer.

[Zamble]

I understand they charge their normal transfer fee. I just needed to know if they can charge sales tax as well.

Thanks for the responses.

[acespawnshop]

even though you would be buying it from a private party, it is not a CA-defined "private party transfer" since both the buyer and seller both aren't showing up to the same FFL to do the paperwork.

Incorrect, as long as the FFL doesn't get involved in anything other than the transfer, and this is an occasional sale. It is an intrastate transfer and would be tax exempt.

[ke6guj]

Incorrect, as long as the FFL doesn't get involved in anything other than the transfer, and this is an occasional sale. It is an intrastate transfer and would be tax exempt.

what are you talking about? I never referred to taxation in my post at all. I was clarifying the OP's comment that it was a "private party transfer". It is a transfer from a private party, but it is not a state-defined PPT so I wanted him to be aware of that.

[acespawnshop]

what are you talking about?

In response to his question.

I just needed to know if they can charge sales tax as well.

Thanks for the responses.

.Can they change him tax. You made it sound like they would charge him. Not in the situation he described they couldn't.

[kemasa]

I understand they charge their normal transfer fee. I just needed to know if they can charge sales tax as well.

It should be exempt from sales tax and the seller should provide a letter saying that he is a private seller, it is an occasional sale and not from a business to document that it is exempt from sales tax.