What is a PPT?

[Librarian]

Librarian submitted a new resource:

What is a PPT? - A Calfornia-resident-only sale between two unlicensed persons, mediated by a CA FFL

Here is the link to the Penal Code:

Codes Display Text

Critical items:

1) Available ONLY to California residents

2) Must stay with the original FFL, cannot be transferred:

(b) The seller or transferor or the person loaning the firearm shall deliver the firearm to the dealer who shall retain possession of that firearm.

3) A CA Private...

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[Dvrjon]

Librarian submitted a new resource:

What is a PPT? - A Calfornia-resident-only sale between two unlicensed persons, mediated by a CA FFL



Read more about this resource...

To augment this, the California Department of Tax and Fee Administration (CDTFA) has issued a guide for buyers and sellers of firearms. The FAQs of that guide provide this input on PPT transactions from a tax/fee perspective: https://www.cdtfa.ca.gov/industry/s...ucts/industry-topics.htm#Private-Party-Seller

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.

 

[otteray]

To augment this, the California Department of Tax and Fee Administration (CDTFA) has issued a guide for buyers and sellers of firearms. The FAQs of that guide provide this input on PPT transactions from a tax/fee perspective: https://www.cdtfa.ca.gov/industry/s...ucts/industry-topics.htm#Private-Party-Seller

There has been a lot of back and forth misinformation about the additional 11% excise tax. This helps clarify when/if it kicks in. thanks!