California Imposes Excise Tax on Firearms

The law, known as the Gun Violence Prevention and School Safety Act, takes effect July 1, 2024.

Governor Gavin Newsom signed into law AB 28, which imposes an 11% state excise tax on the retail sale of a firearm, firearm precursor part, and ammunition. The law, known as the Gun Violence Prevention and School Safety Act, takes effect July 1, 2024.

The law would require that the revenues collected be deposited in the Gun Violence Prevention and School Safety Fund, which will be established in the State Treasury. The bill would require the funds to be used to fund various gun violence prevention, education, research, response, and investigation programs, as specified.

The bill would require each licensed firearms dealer, firearms manufacturer, and ammunition vendor to register with the department for a certificate, as specified. The bill would also provide procedures for the issuance, revocation, and reinstatement of a permit.

Retail sales to law enforcement agencies and active or retired peace officers, and sales that total less than $5,000 per quarter are exempt from this tax.