To all my California friends who haven’t yet left.
Governor Gavin Newsom Signs a Hefty Tax on Firearms: What to Expect
California’s Governor Gavin Newsom recently made waves by signing into law a significant tax increase on firearms and ammunition. This controversial move is expected to have substantial consequences across the state. This article provides an overview of this new tax, what led to its implementation, and the potential impact it may have on consumers and retailers and our Second Amendment.
A Brief History of the Federal Ammunition Excise Tax
The U.S. has been imposing a Federal Ammunition Excise Tax (FAET) since 1919, making it a cornerstone of American tax legislation for over a century. Administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB), the tax percentage is contingent on the type of firearm or ammunition. To elaborate, a 10% FAET is applied to the manufacturer’s price for handguns like pistols and revolvers, while an 11% tax is applied to other portable firearms, shells, and cartridges. It is crucial to clarify that this levy pertains solely to firearms and ammunition that are manufactured for domestic consumption.
The Details of Assembly Bill 28
On September 26, 2023, Governor Newsom authorized a game-changing law – Assembly Bill 28. This law mandates an additional state excise tax of 11% on retail purchases of guns and ammunition in California, beginning July 1, 2024. This added tax comes on top of the already existing federal FAET. In effect, Californians will see the tax on firearms and ammunition purchases practically double from the previous rate. The implications of this law are extensive and have stirred up a substantial debate on both state and national levels.
The Impact on Gun Retailers and Consumers
