California now has 11% tax on gun and ammunition due to new law. Here’s what to know
You’ll soon have to pay more for guns and ammo in California, due to a new law.
Starting July 1, Assembly Bill 28 requires manufacturers, vendors and dealers to pay an 11% tax on firearms and ammunition to fund violence prevention efforts.
It’s one of several new laws focused on gun control, including limiting concealed weapons in public and requiring financial institutions to track firearm sales.
What to know about the new gun tax law:
How does new California law work?
Assembly Bill 28 — also known as the Gun Violence Prevention and School Safety Act — imposes an excise tax of 11% of the gross receipts from retail sales of firearms, firearm precursor parts and ammunition.
Sellers of guns and ammunition must pay the new state tax on top of the 10% to 11% federal excise tax they already pay to fund wildlife conservation efforts.
Assemblyman Jesse Gabriel, D-Woodland Hills, authored the bill after other lawmakers tried and failed to push similar taxes on guns and ammunition through the Legislature.
Gov. Gavin Newsom signed the first-of-its-kind legislation into law in September 2023.
Where does tax revenue go?
Revenue from the new gun tax will go to the Gun Violence Prevention and School Safety Fund.
Money in that fund must be “used to fund various gun violence prevention, education, research, response, and investigation programs, as specified,” according to AB 28.
Specifically, the money will go towards the Board of State and Community Corrections to fund California Violence Intervention and Prevention grants and programs.
Some of the funds could go toward the California Department of Education to address school safety and gun violence, according to the law. That could include security improvements and school programs.
Funds may also be allocated towards programs for the firearm relinquishment grant, victims of gun violence grant and informational gun safety.
Isn’t there already a gun tax?
There’s been a 10% to 11% federal excise tax on the sale of firearms and ammunition by manufacturers, producers and importers since 1919.
Revenues from this tax have been used to “fund wildlife conservation efforts that remediate the effects that firearms and ammunition have on wildlife populations through game hunting,” AB 28 said.
Tax revenues have also been used to pay for “conservation-related research, technical assistance, hunter safety and hunter development,” the law said.
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