Question 11% + tax rate for within state private sales involving shipping?

[dew9lei]

I do know that the tax bs doesn't apply when both parties are signing papers in person for PPT. but how about say if A, who's also living in California but like 500 miles from me, ships a pistol to my local FFL01 for transfer? do the taxes still apply? Thanks

 

[Deleted member 16735]

I think so, and it's treated like a regular dealer transfer i.e. subject to the roster.

 

[Dvrjon]

It would appear that the tax is only on “retail sales”. For PPT, the FFL is a transfer agent. Any transfer fees appear to be retail sales costs (they’re selling a service), but the sale of the gun doesn’t appear to be. Note the statute doesn’t indicate how the firearm is brought to the dealer; however, the FFL may not want to execute the transfer without the seller present. The best answer will come from an FFL who agrees to receive the firearm from a private individual for your transaction.

Industry Topics - Tax Guide for Sellers of Firearm and Ammunition Products

cdtfa.ca.gov

Registering a Firearm from a California Private Party Seller​

When a California private party seller brings a firearm to a CFD and requests that they find a buyer, the CFD is considered the consignee and retailer of the firearm and is liable for the sales tax and the CFET on the subsequent sale of the firearm.

However, when a CFD completes the registration paperwork for a California private party who is selling a firearm to a California purchaser and the seller and purchaser have negotiated the terms of sale in advance, and then bring the firearm to the CFD to meet the statutory requirements for the documentation and registration of the transfer, the CFD is not considered to be the retailer of the firearm and will not be responsible for the sales and use tax or the CFET, provided the CFD does not take title of the firearm at any time during the transaction. The private party seller would be liable for the sales tax unless the transaction qualifies for an exemption. For example, the sale of a firearm between California private parties may be exempt from sales tax if the sale meets the provisions of an exempt occasional sale as provided in Regulation 1595, Occasional Sales–Sale of a Business–Business Reorganization.

 

[Plenty_Pack_556]

How does consignments work? Extra taxes or no?

 

[Dvrjon]

How does consignments work? Extra taxes or no?

From the code citation directly above your post:

Registering a Firearm from a California Private Party Seller​

When a California private party seller brings a firearm to a CFD and requests that they find a buyer, the CFD is considered the consignee and retailer of the firearm and is liable for the sales tax and the CFET on the subsequent sale of the firearm.

 

[Mongoose913]

How does consignments work? Extra taxes or no?

I was told by muliple FFLs, consignment is taxed with the criminal 11% as well.

 

[Mil-Dot]

PPT is not hit with 11% because the $ goes to seller. Only time the tax is applied is when then FFL is receiving the $