Tax on firearm transfer?

L

La Migra

Inactive
Hi,
If you buy a rifle from a FFL dealer who is out of state and you have your local FFL receive and transfer it for you, can your FFL charge you state sales tax on that firearm? I don't see how he can tax it since it would be purchased out of state but that's why I am asking...I'm not sure. Anybody know?
Thanks.

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In most states, there should be no tax on the transaction that you described, assuming that you paid the out-of-state dealer directly.
 
You are one of the exceptions. If you buy mail order in Calif. you apparently have a 'use' tax so in your case you have to pay it. In Texas you send a MO to the seller or give the CC number to the distributor, mail a copy of the FFl, and pay $10 to the receiving FFL as a transfer fee.
 
Yep, in CA you pay sales tax on every purchase you make. Even though you did not purchase it from your local FFL he is still required by CA law to collect sales tax and remit it to the state. As the law is actually written one must pay sales tax on any purchase from out of state. Most people ignor the law and purchase from out of state, direct ship and pay no tax. Even though the vast majority of the citizens do this, it is still illegal.



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Richard

The debate is not about guns,
but rather who has the ultimate power to rule,
the People or Government.
RKBA!
 
Another question...Could I call the FFL I bought the rifle from and ask him to put a lower price than I paid for the rifle on the invoice he sends to my FFL or would that be a bad idea? I just think this taxation on stuff you don't buy in the state of Kali is B.S.

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<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by La Migra:
Could I call the FFL I bought the rifle from and ask him to put a lower price than I paid for the rifle on the invoice he sends to my FFL or would that be a bad idea?
[/quote]

La Migra,

You're right, bad idea! You'd be asking a person with a federally issued license to lie, i.e., commit a crime, for you. If caught, it might very well put his license at risk.

I'm pretty sure it would not do you any good, either.

Numbers
 
Yup, I figured that would be a bad thing to do! I guess I'll just have to pay the tax. Ah, I love Kalifornia.

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While I'm no expert on California law, it would appear to me that the only thing you would pay sales tax on in California would be that service rendered in California. Since you purchased the product elsewhere, you obviously do not owe any tax for the actual purchase. Your FFL will probably charge you around 20 to 30 bucks for the transaction. This would be a service instead of a product. You will owe the State of California the sales tax on that fee your FFL charges you for the service, not the rifle.
Of course I'm assuming that California law makes sense, which from my perspective here in Texas, it rarely does.
 
I know doesn't that tax suck...I never knew it till I bought my sig and had it transferred to an FFL in CA. My FFL told me a story about this FFL in Martinez who was fined tens of thousands of dollars for not charging sales tax on his transfers.

But, a receipt of sale is not required to transfer a firearm, they generally ask you how much it costs, its up to you to divulge that information. So they have to believe what you tell them.

~bamf
 
Does anyone know if a must pay MY DEALER the tax of the RIFLE or the tax of the TRANSFER FEE? I'm not really concerned about paying the state the tax, I just need to know if MY DEALER gets the tax money.
Thanks!

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Your dealer doesn't get to keep the tax money if that is what you are concerned with. He is not charging tax, he is collecting the tax. There is a difference. You declare a reasonable value on the firearm and he will calculate and collect the tax. We don't do it this way in Texas.
 
Does the dealer always provide an invoice for the receiving dealer with the price that I paid for the rifle? If the dealer does NOT send an invoice to the receiving dealer can I say I paid a dollar for it? Hehe-wishful thinking maybe.

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You could try it, but I doubt that the dealer would let you get away with it. That is why I wrote 'reasonable value', sure it could be low, but should be believable. If you lie about the value to avoid the tax that is defrauding the state out of tax revenue and tax evasion. Your call on how you want to handle it.
 
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