non FFL; asking about FFL fees

[Tyson]

I already transfered a USED pistol i bought off gun broker and the FFL charged me 75 for both DROS and an "acquisition fee".

Correct me if I am wrong but I thought on a used item it was set at no more than 20 for their price and 25 DROS ? Also I was charged tax on a used pistol, really California ??

Thanks everyone

[halifax]

Other than the DROS fee ($25) and a face-to-face Private Party Transfer ($10 + DROS) fees are not regulated. And, yes, tax is due on used out of state sales.

[ke6guj]

yup, halifax is correct, the FFL can charge you whatever fees he wishes to in your scenario, with the one caveat being that he can't represent his add-on dealer fees to be state-required DROS fees. As long as he keeps them separate, he could charge you $200 transfer fee if he wanted to since he isn't required to facilitate the transfer for you.

and the BOE has told dealers that they must charge sales/use tax on out-of-state transfers as well, and that should be charged on the price of the gun, the shipping charges, and the dealer fees as well.

[Chiefnra]

Thought we only charge sales tax on new guns from out of state.

[Tovarish]

OP, if that $75 includes the $25 DROS fee, that's actually a pretty reasonable fee your shop charged you. It widely ranges from $50 including DROS to $150 including DROS.

And there are only a couple exceptions to sales tax on out-of-state firearm purchases. One of them is if you are an FFL03 buying a C&R gun.

FFLs vary in their interpretation of whether the law requires them to charge sales tax if you bought from a private party out-of-sate. More seem to err on the side of charging sales tax.

New or used makes no difference on this issue. In-state transactions are a separate matter though. Any time you buy from a private party inside California you should not be paying sales tax.

[ke6guj]

Thought we only charge sales tax on new guns from out of state.

Nope, BoE says that all out-of-state transfers require that USE tax be collected.

[Librarian]

Correct me if I am wrong but I thought on a used item it was set at no more than 20 for their price and 25 DROS ? Also I was charged tax on a used pistol, really California ??

To add to the explanations you have already, you appear to be thinking of a California Private Party Transfer (PPT) here. That is not available for an interstate sale; the DROS software will not accept out of state ID for that transaction.

And, while it is frequently the case that one person sells a 'used' gun to another person in a PPT, used/new is not the issue. One might PPT a NIB collectible handgun for the same $10 + $25 DROS (which is really 3 separate fees of $19, $1, and $5).

[ugimports]

...
And there are only a couple exceptions to sales tax on out-of-state firearm purchases. One of them is if you are an FFL03 buying a C&R gun.
...

Where is this exception noted? I have had FFL03s purchase C&Rs from JG Sales and other sights, but have been collecting sales tax. Why is an FFL03 exempt? The letter I received from BOE listed no such exemption for that purchase.

[Tovarish]

Where is this exception noted? I have had FFL03s purchase C&Rs from JG Sales and other sights, but have been collecting sales tax. Why is an FFL03 exempt? The letter I received from BOE listed no such exemption for that purchase.

I believe somehow the exception applies only to a C&R that is sold by a private party out of state. Kemasa posted this a while back:

http://www.calguns.net/calgunforum/attachment.php?attachmentid=156238&d=1340749533

[ugimports]

that makes more sense now. I thought you were referring to any FFL03/C&R transaction.

[kemasa]

Yes, there is an exemption for the purchase of a C&R firearm which is an occasional sale, not from a business and the buyer has a C&R FFL.

The CA BOE used the excuse that firearms from private parties are subject to sales tax because Federal law requires that it go through a FFL (which is bogus, but that is another issue). Since Federal law does not require that a C&R firearm go through a CA FFL, then they can use that excuse for sales tax. If they tried to claim that anytime the firearm when through a CA FFL, then in-state transfers would be an issue, so they ended up being a bit trapped by their own statements.