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Old 12-17-2018, 1:26 PM
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Default Sales tax on trades within CA

Two California residents ship rifles to each other's FFL's in an even trade. Is there sales tax assessed?
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Old 12-17-2018, 4:20 PM
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As long as it is an occasional sale, not from a business and the FFL doesn't get involved with the price or finding the buyer/seller, it wouldn't be subject to sales tax. It doesn't matter that it is a trade as it is considered buying the firearm.
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Old 12-17-2018, 4:24 PM
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Thanks. I ask because any time a firearm is purchased and shipped to a buyer in California, sales tax is assessed on the purchase price. Since there is no money exchanged in a trade, I wondered how that uniquely California sales tax rule would work.
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Old 12-17-2018, 6:18 PM
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Quote:
Originally Posted by Paul_R View Post
Thanks. I ask because any time a firearm is purchased and shipped to a buyer in California, sales tax is assessed on the purchase price. Since there is no money exchanged in a trade, I wondered how that uniquely California sales tax rule would work.
That isn't correct. The main issue is in regards to firearms shipped into CA from other states. With the exception of private sales of C&R firearms where the buyer has a C&R FFL, the CA BOE claims the firearm is subject to sales tax because Federal law requires that the firearm go through a FFL. Firearms within CA and C&R firearms where the buyer has a C&R FFL are not required by Federal law to go through a CA FFL, so that excuse doesn't work. If the seller is a CA resident, it is a private sale, an occasional sale and not from a business and it is documented, then it is not subject to CA sales tax.

CA doesn't care if there isn't money exchanged in a trade, they care about the trade as if the item was purchased, so it could be subject to sales tax. If the trade is done with a person outside of CA, then it would be subject to sales tax the same as if you bought it.
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