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Buying a c&r handgun out of state and sales tax

skully

⚠️ New Member | No Deposits ☢️
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I have a friend who is in California interested in a C&R gun I have (colt shows 1971 date on it via lookup so its C&R). I wouldn't think he needs to pay California sales tax as I am not a California resident or ffl (though I may have a ffl ship it) so I don't think it applies as I never charged anyone else sales tax in other states. Also, are some dealers kinda weird about taking C&R guns as transfers or is he good at any California ffl that takes transfers. If it helps he can get his C&R but I know all it does is bypass 10 day wait. Thank you for the help.
 
If your friend has an 03FFL (C&R) and COE he can come visit you in your state of residence and buy it from you in person and bring it back to CA where he will have to register it online with CADOJ. But he has to have an 03FFL, a COE, and the transaction cannot take place in CA.

If you ship/import it to CA, he has to find an FFL that is willing to receive the firearm as roster exempt (C&R) and transfer it to him. He will have to pay sales tax, extra 11% gun tax, the dealer's transfer fee, the DROS fee and wait 10 days to pickup.
 
If your friend has an 03FFL (C&R) and COE he can come visit you in your state of residence and buy it from you in person and bring it back to CA where he will have to register it online with CADOJ. But he has to have an 03FFL, a COE, and the transaction cannot take place in CA.

If you ship/import it to CA, he has to find an FFL that is willing to receive the firearm as roster exempt (C&R) and transfer it to him. He will have to pay sales tax, extra 11% gun tax, the dealer's transfer fee, the DROS fee and wait 10 days to pickup.
Would the same happen if I accept a trade from him instead of a sale? Also not sure if it matters but if I sold it to him it would be a money order not on gunbroker or anything, plus as I trust him I might do a trade if then he didn't have to pay the sales tax and 11% gun tax. Thanks its just been tough to find accurate information about it
 
Would the same happen if I accept a trade from him instead of a sale? Also not sure if it matters but if I sold it to him it would be a money order not on gunbroker or anything, plus as I trust him I might do a trade if then he didn't have to pay the sales tax and 11% gun tax. Thanks its just been tough to find accurate information about it
Not sure how taxes are assessed on a trade like that. He/you should start by finding a good FFL to do the transfer and ask them.
 
There is no tax if it's a gift.
This says otherwise.


Legally, it needs to go to a dealer and the dealer is supposed to collect all of the taxes. If he does not provide a bill of sale, then the dealer might charge fair market value for the taxes. Since the whole onus of paying the taxes is on the dealer, there is no motivation to help someone cheat the taxes at the dealer's expense. That is if the transaction is processed legally. He should shop around for dealers that make this process as smooth as possible with as little transfer fee as possible. Again, assuming this process if done legally.
 
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That says if no bill of sale is provided. That doesn't mean gift, that means they didn't send the receipt.

From CDTFA:
Transfers of gifted or awarded firearm products:
Firearm products provided as gifts, awards, or raffles are not retail sale transactions, and the person providing the gift, award,
or raffle is not subject to the CFET
 
That says if no bill of sale is provided. That doesn't mean gift, that means they didn't send the receipt.

From CDTFA:
Transfers of gifted or awarded firearm products:
Firearm products provided as gifts, awards, or raffles are not retail sale transactions, and the person providing the gift, award,
or raffle is not subject to the CFET
Yep, yessir, that's the law alright. But like Westsidearms ,says, good luck finding an FFL to cooperate.
 
That says if no bill of sale is provided. That doesn't mean gift, that means they didn't send the receipt.

From CDTFA:
Transfers of gifted or awarded firearm products:
Firearm products provided as gifts, awards, or raffles are not retail sale transactions, and the person providing the gift, award,
or raffle is not subject to the CFET
Can you post your link to that quote? I know someone put out a new tax bulletin that largely changes what they have been saying for quite some time. However, what you posted contradicts the website in a way.

CDTFA Website: Does the CFET apply when firearm products are purchased by a CFD to be given away or donated as gifts, awards, or raffle prizes?
  • Yes. The CFD cannot purchase these firearms products for resale or issue a resale certificate. The sale of the firearm product to the CFD is a retail sale and the CFET is due on that retail sale.
Again, when in doubt, the tax is due and will be collected. The CDTFA has been contradicting their long standing practices.
 
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I had a customer with probably over 400 guns that was going to answer yes, but I convinced him not to perjure himself and he said no. I will let you know if he gets denied. Less than 10 days to go!

Was this part of the reply you received in writing?

Can you post your link to that quote? I know someone put out a new tax bulletin that largely changes what they have been saying for quite some time. However, what you posted contradicts the website in a way.


Again, when in doubt, the tax is due and will be collected. The CDTFA has been contradicting their long standing practices.

Can you post your link to that quote? I know someone put out a new tax bulletin that largely changes what they have been saying for quite some time. However, what you posted contradicts the website in a way.
 
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This whole thing is confusing AF and I get the feeling whoever published this bulletin has no damned idea what they are talking about. Let's break it down.

As a seller of firearm products, you should not issue a resale certificate for sales and use tax purposes when you purchase firearm products that you intend to donate or give away. You are considered the consumer of the firearm products you donate or give away and should pay the sales tax on your purchase price.

The licensee that sold you the firearm products will generally be considered the retailer in this situation and will owe the California Firearm and Ammunition Excise Tax (CFET) on its retail sale to you.

So the first paragraph is saying I owe the sales tax on the retail sale and I have to pay it. That seems consistent with everything that has always been said. However, that second paragraph is pretty stupid. "You" must still mean a " licensed firearm dealer, ammunition vendor, or firearms manufacturer (seller) who makes retail sales of firearms, f irearm precursor parts, and ammunition (firearm products) to consumers". So my wholesaler in another state is now considered the retailer and they will collect my CFET? How in the hell would they know? Why not just be consistent with sales tax and I just report my own CFET and submit it? How do I notify my "retailer" (wholesaler) this has happened? Further this is inconsistent with everything we know about sales receipts and tax collection. If the sales receipt does not include tax collection, then the consumer is no longer liable for the tax and only the retailer must pay the tax. So sorry my wholesalers. You should have figured out my CFET was due before you sent me that promotional item I gave away and now you owe it, even though you live out of state. I am sorry, but this is clear stupidity.

Transfers of gifted or awarded firearm products: Firearm products provided as gifts, awards, or raffles are not retail sale transactions, and the person providing the gift, award, or raffle is not subject to the CFET.
This literally contradicts what they just said! When "you" referred to the seller of firearms products, donations and give aways were considered retail transactions. Is a donation and a give away different than a gift? Because now they are saying that the person providing the gift, award, or raffle is not a retail transaction and they do not collect the CFET. How are sellers of firearms products consumers subject to taxes and then in the next paragraph they are not? As I posted earlier, "(a) Gifts. Persons who make gifts of property to others are the consumers of the property and the tax applies with respect to the sale of the property to such persons." So who is subject to the CFET for gift, awards, or raffles? This makes zero sense.

Screw it. I am taxing everything. If you can find a dealer who won't, use them. I won't snitch. Good for them. They are going to learn the hard way that whoever put out this bulletin had their head in their rear and it will get corrected. It makes zero sense.
 
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