Johnny Meadows,SASS#28485L Posted December 5, 2012 Share Posted December 5, 2012 I have a customer in California that has bought a Shotgun from me. He is telling me that the receiving FFL is charging him sales tax. Is this right? Thanks, Johnny Meadows Link to comment Share on other sites More sharing options...
Grizzly Dave Posted December 5, 2012 Share Posted December 5, 2012 It would appear so Link to thread on another forum. Link to comment Share on other sites More sharing options...
Captain Bill Burt Posted December 5, 2012 Share Posted December 5, 2012 California recently passed a law allowing them to tax internet transactions. There were some limitations on when the tax is applicable, but maybe that's what this is about. I think it had something to do with whether the vendor had a physical presence in the state, though I can't remember the details. I know one immediate effect of the law was to cause some internet businesses based in Cali to move out of the state. Link to comment Share on other sites More sharing options...
Black Harris #154 Posted December 5, 2012 Share Posted December 5, 2012 It is true, California now requires FFL to collect sales tax. BH Link to comment Share on other sites More sharing options...
Broncho Billy Aronson Posted December 5, 2012 Share Posted December 5, 2012 Has nothing to do with the recently installed tax on internet sales. For years now the CA DOJ has collected tax on firearms coming to and registered in CA Link to comment Share on other sites More sharing options...
The Original Lumpy Gritz Posted December 5, 2012 Share Posted December 5, 2012 Has nothing to do with the recently installed tax on internet sales. For years now the CA DOJ has collected tax on firearms coming to and registered in CA NOT the DOJ that collects the tax. It's called, The State Board of Equalization. http://www.boe.ca.gov/ NOT fun people to deal with......... LG Link to comment Share on other sites More sharing options...
Captain Bill Burt Posted December 5, 2012 Share Posted December 5, 2012 It looks like this is a new tax and is internet related, here's the PDF. http://www.boe.ca.gov/news/pdf/l324.pdf Link to comment Share on other sites More sharing options...
The Original Lumpy Gritz Posted December 5, 2012 Share Posted December 5, 2012 Bill, that just gives more 'teeth' to the law. IIRC, Ca. FFL's have had to collect sales tax from out of state sales for a few yrs. now. LG Link to comment Share on other sites More sharing options...
Captain Bill Burt Posted December 5, 2012 Share Posted December 5, 2012 The laws over there have so much 'teeth' I'm surprised you have any skin left at all Lumpy Link to comment Share on other sites More sharing options...
Jittery Jim Jonah, SASS #64913L Posted December 5, 2012 Share Posted December 5, 2012 I have a customer in California that has bought a Shotgun from me. He is telling me that the receiving FFL is charging him sales tax. Is this right? Thanks, Johnny Meadows It's actually been that way since at least 1997. The issue comes up regularly for Friends of NRA events. CA wants their sales tax collected on any firearm sold or transferred in the state. FNRA committees give each of their FFL holders a letter from the Franchise Tax Board that tells them the FNRA national office pays the sales tax on the purchase price of firearms sold/ transferred in CA so the dealer does not have to collect it. The national office sends one big check to them each year for all the CA committees. JJJ-D :ph34r: Link to comment Share on other sites More sharing options...
Cliff Hanger #3720LR Posted December 5, 2012 Share Posted December 5, 2012 Not only does the Board of Equalization collect sales tax, they collect what they call a "Use Tax". This applies to items bought out of state and brought in to the state for use here. If you reside in California any thing you buy and bring in to California is assumed to be used here so a use tax is due. Just happens the "Use Tax" and "Sales Tax" rates are identical. Goes up Jan 1, 2013 by .025%. If you buy any thing from a private party in California that requires you to transfer title, the BOE will collect "Use Tax" on it. Example; Buy a uses car from a private party you will pay the Use Tax when the title is transferred. If you pay sales tax in another state you can disclose that to BOE and hope they accept it as Cal tax. If not you have to try and get back any taxes paid in another state as a non resident to offset what you are going to pay California whether you like it or not. BOE tries to get Use Tax on other items but without a title transfer they don't know how to go after it. Link to comment Share on other sites More sharing options...
Broncho Billy Aronson Posted December 5, 2012 Share Posted December 5, 2012 I stand corrected Link to comment Share on other sites More sharing options...
Tully Mars Posted December 6, 2012 Share Posted December 6, 2012 JM, That's how it worked when I bought the 93/97 from you earlier this year. Did not seem right to me, but that's how it is. Tully Link to comment Share on other sites More sharing options...
Springfield Slim SASS #24733 Posted December 6, 2012 Share Posted December 6, 2012 Technically ANYTHING you buy online you are supposed to pay taxes on, just look at your tax form if you do it yourself. Now they don't give you the chance to do it yourself and have the FFl do it. It is not a new law, just enforcement of the one that was already their but they knew they were losing money. The thing I don't like is, say I buy something from gun store in Maine, why should California get any taxes on it, they aren't going to help the store in Maine or build any roads to his store or help him in any way. It is like found money to them. Link to comment Share on other sites More sharing options...
Johnny Meadows,SASS#28485L Posted December 6, 2012 Author Share Posted December 6, 2012 Thanks for the clarification. Johnny M. Link to comment Share on other sites More sharing options...
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