FFL Q: sales tax question

[ad40]

Hello all,

I live in Nor Cal and reached a deal with a private party in So Cal for a rifle.
He brought it to his FFL and had them ship it to my FFL.
Will I need to pay sales tax to my FFL for the rifle?

Thank you for your consideration.

[halifax]

If your FFL had accepted it directly from the seller then there would be little question that an in-state occasional private sale would not be taxable. I don't know how your FFL will handle tax when it was received from another dealer however. What did he say?

[kemasa]

As long as the seller provides a letter stating that it is a private sale, an occasional sale and not from a business (can be shipped through a business I believe), then it would not be subject to sales tax, although some/many FFLs might not be aware of that.

You can confirm this with the CA BOE. In this case, the other FFL is just acting as a shipper and is not involved with finding the buyer/seller nor involved with the price.

[ad40]

If your FFL had accepted it directly from the seller then there would be little question that an in-state occasional private sale would not be taxable. I don't know how your FFL will handle tax when it was received from another dealer however. What did he say?

He asked me if I had paid sales tax on it?
I did not think I needed to pay sales tax since I bought it from a private party and the shipping FFL was just that- just shipping.

[ad40]

As long as the seller provides a letter stating that it is a private sale, an occasional sale and not from a business (can be shipped through a business I believe), then it would not be subject to sales tax, although some/many FFLs might not be aware of that.

You can confirm this with the CA BOE. In this case, the other FFL is just acting as a shipper and is not involved with finding the buyer/seller nor involved with the price.

I am almost positive the seller did not provide a letter to the shipping FFL

[CSACANNONEER]

I am almost positive the seller did not provide a letter to the shipping FFL

Have the seller provide YOU a letter to give to your FFL. It sure sounds like you're going to have to educate your FFL on when he is required to collect tax and when he isn't. Tried lightly here. Many people get butt hurt when their customers know more about the legalities of their business than they do.

[halifax]

He asked me if I had paid sales tax on it?
I did not think I needed to pay sales tax since I bought it from a private party and the shipping FFL was just that- just shipping.

Until recently both in-state and out-of-state occasional sales between private parties were not taxable. The BOE changed that to in-state only.

[kemasa]

Until recently both in-state and out-of-state occasional sales between private parties were not taxable. The BOE changed that to in-state only.

Not quite correct. C&R handguns from a private party where the buyer has a C&R FFL would not be subject to sales tax if it is an occasional sale.

The BOE is using the excuse that Federal law requires the firearm to go to a FFL causes it to be subject to sales tax, but in the case of the C&R, it is CA law.

[APV]

The deal falls into category of occasional sales exempted by BOE from sales tax. However I saw notification on some dealers sites requiring both parties seller and buyer to be present in person. I checked BOE publications for clarification on FFL to FFL transfers of private sales (the question asked by OP) and could not find reference specific to firearms transfers. Recent BOE Sales and US Tax publication 61 has no specifics on FFL transfers. Can anybody point to the relevant BOE reference?

[kemasa]

There was a BOE letter which applies to any private sales, but the BOE eliminated the out of state aspect, for the most part. There is nothing in which it says that private sales are to be taxed.

[APV]

There was a BOE letter which applies to any private sales, but the BOE eliminated the out of state aspect, for the most part. There is nothing in which it says that private sales are to be taxed.

thanks

[roger1022]

There was a BOE letter which applies to any private sales, but the BOE eliminated the out of state aspect, for the most part. There is nothing in which it says that private sales are to be taxed.

I know this has been beat around before but there are many dealers saying private sales will be subject to tax. Some will charge, others will not so its widely varied.

[kemasa]

You can ask the CA BOE about it and there is a letter about it, which private sales within CA are not subject to sales tax if it is an occasional sale and the FFL does not get involved with finding the buyer/seller or the price.