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FFL in California Required to Collect Tax
peetyboy
Member Posts: 47 ✭✭
The last time I bought a gun in 2006, my FFL did not collect sales tax. I am buying a gun this year and using a different FFL in California and he is saying that he is required to collect sales tax on the purchase of my gun even though it is shipping from the state of KS. That doesn't seem right if I paid tax outside the state of CA for me to pay CA sales tax as well.
This is a private party transfer.
Is my new FFL wrong?
This is a private party transfer.
Is my new FFL wrong?
Comments
If you mailed the money yourself, he does not because he is only a transfer agent.
At least the way it was explained to me.
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In California the dealer must collect sales/use taxes on so called "Third party purchases". These are purchases where someone ordered an item from out of state which he would have to pay the tax on if it were to be purchased in this state (like a firearm). There are some dealers who will not collect the tax if the buyer paid the seller directly with his own funds, but I have a problem with this. Sales tax is due on all such purchases and the State Board of Equalization mandates that in cases where sales and use taxes are due and not collected at time of sale (due to error or otherwise) the dealer (ME) has to make up the full amount of any such tax himself...and that just won't happen! On the other hand private party firearms tranfers are not taxed in this state so the dealer does not collect sales or use taxes on private transfers (which are well defined for firearms under state law).
Mark T. Christian
If you want to get the real answer then do like I did & take a copy of their reply to the dealer.
Quite a while ago this question was asked & I sent an E-Mail to the California Franchise Tax Board. Their response was that the dealer should not collect the tax BUT you should pay the "use tax". (Like anyone does.)
If you want to get the real answer then do like I did & take a copy of their reply to the dealer.
I looked up the use tax and everyone avoids paying that. I will call them at the franchise tax board tomorrow.