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Old 03-01-2012, 7:57 PM
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Paperchasin Paperchasin is offline
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Can someone clarify the bolded part of this excerpt:

"On the other hand, in situations where a California FFL dealer completes the registration paperwork for a California private party that is selling a firearm to another California private party and the seller and purchaser agree to the sale of the firearm without any assistance from a California FFL dealer (i.e., the California FFL dealer simply registers the firearm without taking title to it at any time) the California FFL dealer would not be considered the retailer and would not be responsible for the tax.

Does this mean that when an out-of-state seller ships the gun to CA thru his FFL, that what technically happens is the out-of-state FFL transfers the title to himself, then transfers it to the receiving FFL in CA, and then to the end buyer? Is this why we are subject to sales tax? I was under the impression that the FFLs were indeed simply acting as middlemen to register/transfer the firearm, nothing more.

And for those people that are saying that buying from an Out-of-state private party pays no sales tax, this excerpt seems to contradict that:
"when a California FFL dealer completes the registration paperwork and delivers a firearm to a California purchaser for an out-of-state private party seller or an out-of-state retailer not registered with the BOE as a retailer engaged in business in this state, it is presumed that the California FFL dealer is the retailer of the firearm. This is due to the fact that by operation of law, only the California FFL dealer possessing the firearm has power to cause title to the property to transfer to the purchaser. Thus, the California FFL dealer owes sales tax on the total amount of the sales price of the gun, including their service charge, but excluding the Dealer’s Record of Sale (DROS) fee. The California firearm dealer should generally obtain a copy of the sales invoice from the seller or purchaser to determine the proper amount of tax due."

Last edited by Paperchasin; 03-01-2012 at 8:02 PM..
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