New 2024 California Tax on Firearms & Ammo

Beginning July 1, 2024, Assembly Bill 28  requires licensed firearms dealers, ammunition vendors, and firearms manufacturers to register to pay a 11% excise tax on the gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition in California.

 Note this is in addition to the 10 or 11% federal excise tax which depends on the type of firearm. The federal excise tax was first introduced in 1919.

 The California excise tax is paid by the seller but to avoid a loss of profit, you should expect all sellers to raise their prices on firearms and ammunition by 12.21% (11 percent higher sales price would then be subject to the 11% excise tax) 

 Sales to any active or retired peace officer or any law enforcement agency employing that peace officer are exempt from the California excise tax. 

 On top of the excise tax imposed on the seller, buyers are still subject to California sales tax on the purchase of firearms and ammunition.