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Old 06-20-2012, 9:35 AM
Apec Apec is offline
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Quote:
The use tax is intended to protect California sellers who otherwise would be at a competitive disadvantage when out-of-state sellers make sales of goods to California customers without charging tax. The use tax also assures that all consumers in the state contribute fairly to the funding of state and local programs whether they choose to make purchases in California or outside the state.
It's funny. I read the BOE's website and they say the tax is purported to level the playing field for in-state businesses against out-of-state ones. However, FFLs already charge a fee for this reason, whereas the tax is not necessarily going into programs that directly benefit businesses at an "unfair disadvantage."

When total OTD fees are lower, FFLs see a higher volume of transfers, though that doesn't preclude them from profiting off what ammo and guns they do sell. There are plenty of people who don't do the online guns business and still shop local.

The BOE is really just prolonging deadweight loss by discouraging people from buying out-of-state guns, let alone going to their LGS if their LGS doesn't happen to carry what they want.

If anything, they should just tax the transfer fee, not the value of the goods.
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Last edited by Apec; 06-20-2012 at 9:37 AM..
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