IZinterrogator
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SpyGuy hasn't been on this site since February. In the future, you may want to check if someone is still active here before you challenge them on something they said four years ago.
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Why do FFL transfer dealers try to charge sales tax?
- Thread starter SpyGuy
- Start date
GunsnRovers
New member
It's always interesting how old threads get dug up.
Zekewolf: How to nicely put this? Depending on the location and the laws of the state, you are wrong, completely and totally wrong as the FFL is not dishonest nor ignorant and in fact it is the opposite and the FFL is honest and informed and is following the law. In CA a FFL is required to collect sales tax from any firearm which comes from a business. That is the law. That is why the transferee FFL needs to know the amount paid and if you refuse to say and/or provide documentation to that amount, the FFL may choose to protect themself and stop the transaction, then you will be spending more time and money to deal with it. There are many FFLs who are ignorant of the law and who fail to follow the law, which then gives people like you the impression that sales tax need not be collected, then when you run into someone who knows the law, you then falsely accuse them of not knowing the law and being dishonest.
It is exactly this false opinion which needs to be corrected. The first thing you need to do is to check with your state and local laws with regards to sales tax and see what the reality is before you go accusing someone of illegal activity (can you say libel?).
CA info to back up what I am saying, do you have anything to back up what you have said?
http://www.boetaxes.ca.gov/business/vol2/annotat/suta-q-s.pdf
Section: 495.0843
Section: 495.0848
495.0843 Deliveries by California Firearm Dealers for Out-of-State Retailers.California residents order firearms from out-of-state retailers and the retailers
ship the firearms to an authorized California firearm dealer for delivery to thecustomer. The California firearm dealer charges a fee to register each firearm in California.
When the California firearm dealer completes the registration paperwork anddelivers a firearm to a California purchaser for an out-of-state retailer not
registered with the Board as a retailer engaged in business in this state, it ispresumed that the firearm dealer is the retailer of the firearm under the second paragraph of section 6007. In such a case, the firearm dealer would owe sales taxon the total amount of the retail sales price of the gun to the customer, including the Department of Justice fee if passed on to the customer, and including anyservice charge made by the firearm dealer.
If the firearm dealer establishes to the satisfaction of the Board that theout-of-state retailer was engaged in business in this state under section 6203, its deliveries for that retailer will not be considered taxable retail sales by the firearmdealer, even if the out-of-state retailer has not registered with the Board as a retailer engaged in business in this state. In such cases, as well as in situations inwhich the retailer is in fact registered as a retailer engaged in business in this state, the out-of-state retailer has a duty to collect the use tax under section 6203.The retailer should collect use tax on the invoice price of the firearm, plus the service fee, even if paid directly to the firearm dealer by the customer. Also, theDepartment of Justice fee passed onto the customer should be included in the measure of tax. 12/7/95. (Am. 99-2).
495.0848 Delivery by Licensed Firearm Dealer. A California residentpurchased a firearm from an out-of-state retailer who is not engaged in business
in California. The California customer contacts a licensed California firearmdealer and states that he paid money to an out-of-state dealer and wishes for the dealer to have the firearm shipped to the dealer's place of business and legallytransfer the firearm to him. The dealer contacts the out-of-state seller and arranges to have the firearm sent to him. Upon receipt of the firearm (prepaid bythe customer), the dealer logs the firearm into his Federal Acquisition/Disposition books. The customer then fills out the State Department of Justice FirearmsDealer Record of Sale. The dealer collects the state fee of $14.00 plus a $16.00 charge to cover the dealer's expenses.
When a licensed California firearm dealer completes the registrationpaperwork and delivers a firearm to a California purchaser for an out-of-state
retailer not registered with the Board as a retailer engaged in business in this state,it is presumed that the dealer is the retailer of the firearm. In such a case, the dealer would owe sales tax on the total amount of the sales price of the gun,including the Department of Justice fee passed on to the customer and including the dealers service charge. (Section 6007)
If the out-of-state retailer was engaged in business in this state under section6203, the California dealer's deliveries for that retailer will not be considered
taxable retail sales by the dealer, even if the out-of-state retailer has not registeredwith the Board as a retailer engaged in business in this state. In such cases, the
out-of-state retailer has the duty to collect the use tax under section 6203 and thatretailer should collect tax on the invoice price of the firearm plus the dealer's service charges and the Department of Justice fee that is passed on the customer.10/26/95. (Am. 99-2).
(Note: On and after January 1, 1999, the Department of Justice fee is notincludible in the measure of tax, but all other charges remain subject to tax.)
It is exactly this false opinion which needs to be corrected. The first thing you need to do is to check with your state and local laws with regards to sales tax and see what the reality is before you go accusing someone of illegal activity (can you say libel?).
CA info to back up what I am saying, do you have anything to back up what you have said?
http://www.boetaxes.ca.gov/business/vol2/annotat/suta-q-s.pdf
Section: 495.0843
Section: 495.0848
495.0843 Deliveries by California Firearm Dealers for Out-of-State Retailers.California residents order firearms from out-of-state retailers and the retailers
ship the firearms to an authorized California firearm dealer for delivery to thecustomer. The California firearm dealer charges a fee to register each firearm in California.
When the California firearm dealer completes the registration paperwork anddelivers a firearm to a California purchaser for an out-of-state retailer not
registered with the Board as a retailer engaged in business in this state, it ispresumed that the firearm dealer is the retailer of the firearm under the second paragraph of section 6007. In such a case, the firearm dealer would owe sales taxon the total amount of the retail sales price of the gun to the customer, including the Department of Justice fee if passed on to the customer, and including anyservice charge made by the firearm dealer.
If the firearm dealer establishes to the satisfaction of the Board that theout-of-state retailer was engaged in business in this state under section 6203, its deliveries for that retailer will not be considered taxable retail sales by the firearmdealer, even if the out-of-state retailer has not registered with the Board as a retailer engaged in business in this state. In such cases, as well as in situations inwhich the retailer is in fact registered as a retailer engaged in business in this state, the out-of-state retailer has a duty to collect the use tax under section 6203.The retailer should collect use tax on the invoice price of the firearm, plus the service fee, even if paid directly to the firearm dealer by the customer. Also, theDepartment of Justice fee passed onto the customer should be included in the measure of tax. 12/7/95. (Am. 99-2).
495.0848 Delivery by Licensed Firearm Dealer. A California residentpurchased a firearm from an out-of-state retailer who is not engaged in business
in California. The California customer contacts a licensed California firearmdealer and states that he paid money to an out-of-state dealer and wishes for the dealer to have the firearm shipped to the dealer's place of business and legallytransfer the firearm to him. The dealer contacts the out-of-state seller and arranges to have the firearm sent to him. Upon receipt of the firearm (prepaid bythe customer), the dealer logs the firearm into his Federal Acquisition/Disposition books. The customer then fills out the State Department of Justice FirearmsDealer Record of Sale. The dealer collects the state fee of $14.00 plus a $16.00 charge to cover the dealer's expenses.
When a licensed California firearm dealer completes the registrationpaperwork and delivers a firearm to a California purchaser for an out-of-state
retailer not registered with the Board as a retailer engaged in business in this state,it is presumed that the dealer is the retailer of the firearm. In such a case, the dealer would owe sales tax on the total amount of the sales price of the gun,including the Department of Justice fee passed on to the customer and including the dealers service charge. (Section 6007)
If the out-of-state retailer was engaged in business in this state under section6203, the California dealer's deliveries for that retailer will not be considered
taxable retail sales by the dealer, even if the out-of-state retailer has not registeredwith the Board as a retailer engaged in business in this state. In such cases, the
out-of-state retailer has the duty to collect the use tax under section 6203 and thatretailer should collect tax on the invoice price of the firearm plus the dealer's service charges and the Department of Justice fee that is passed on the customer.10/26/95. (Am. 99-2).
(Note: On and after January 1, 1999, the Department of Justice fee is notincludible in the measure of tax, but all other charges remain subject to tax.)