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View Full Version : Annual Sales Tax Revenue From Ammo


Phil3
10-12-2009, 2:38 PM
Does anyone have any idea how much sales tax revenue is generated annually from ammo sales? Some portion of that will disappear with people like me never buying ammo with any thumbprint requirement. On the other hand, revenue may go up because of the ban on Internet sales, forcing people back into the stores.

Just curious as to what kind of dollars are in play here.

- Phil

Blackhawk556
10-12-2009, 2:39 PM
it would be nice to see those numbers and then send them to arnie


what a loser

CavTrooper
10-12-2009, 2:40 PM
Im pretty sure they are counting on tax revenue increasing from the lack of internet sales.

POLICESTATE
10-12-2009, 2:42 PM
I plan on periodically ordering ammo online and stocking up until the ban goes into effect (assuming it survives judicial review). At that point I will just use load-x or where ever is reasonably local to me to do reloads.

lawnrevenge
10-12-2009, 2:42 PM
I'll be a regular at the Vegas and Phoenix shows if I haven't gotten the heck outta here by 2011. A little spent is gas is worth it to not have to put up with this crap.

thmpr
10-12-2009, 2:43 PM
I'll be a regular at the Vegas and Phoenix shows if I haven't gotten the heck outta here by 2011. A little spent is gas is worth it to not have to put up with this crap.

Totally agree.....!!!

freakshow10mm
10-12-2009, 2:47 PM
ST is around 9% in CA, right?

Using my average retail price of $296.67/1,000rds as an example, 9% on top of that would be $26.70/sale of a case of ammo. Seems most ranges and gun shops sell about 200 cases a month, that's $5,340/mo in tax revenue. How many places do you think sell ammo in CA, maybe 1,500? There's a cool $8 million a month. Some places I know sell 500 cases a month.

That's just a WAG. I'm sure there's more than 1,500 places in CA selling ammo. We're still talking over $100 million easy. Couple that with the income tax the companies have to pay on the profit and it a good chunk of change.

Places cease to sell ammunition due to additional overhead, that reduces their sales, sales tax revenue, profit, and income tax for the state. Less money is staying in the state so the economy suffers.

Then again, instead of going to the ammo retailers it will go to the gas stations as people buy more gas to travel out of state to buy ammo. The state will get more tax dollars out of gasoline sales.

Revenue will still be there, it will just come from different sources.

SteveH
10-12-2009, 2:50 PM
I think this law will increase sales in California. I've been buying all of my ammo online for over 10-years. But come Feb 1, 2011 i'll have to go to walmart or a gunstore for handgun ammo (and pay significantly more).

I'll bet some gun stores are thrilled this passed.

pdq_wizzard
10-12-2009, 2:52 PM
Then again, instead of going to the ammo retailers it will go to the gas stations as people buy more gas to travel out of state to buy ammo. The state will get more tax dollars out of gasoline sales.

Revenue will still be there, it will just come from different sources.

I will just fill up before I leave Reno and I should have move gass when I get back than when I left :D

freakshow10mm
10-12-2009, 2:55 PM
That works too.

pdq_wizzard
10-12-2009, 2:56 PM
I think this law will increase sales in California. I've been buying all of my ammo online for over 10-years. But come Feb 1, 2011 i'll have to go to walmart or a gunstore for handgun ammo (and pay significantly more).

I'll bet some gun stores are thrilled this passed.

In side the Sac city limits you have to give a thumb print, the first time I went in to (don't remeber the store) they told me I had to do XXX I said nope and drove down the road to another store. Hell I won't even buy powder in Sac county because they have you right down your address and DL #. :TFH:

HondaMasterTech
10-12-2009, 2:56 PM
I am not leaving California in an attempt to run it into the ground with my missing tax dollars. Lets say California actually MADE a bunch of money from AB962, that money would be wasted just like every other cent that is given from every other tax in this state. California's problems aren't a lack of money, it's a lack of responsibility.

GuyW
10-12-2009, 3:07 PM
Doesn't handgun ammo have the 11% Pittman-Robertson tax?
.

freakshow10mm
10-12-2009, 3:21 PM
Yes, but the FET is for federal use and is not used for state things. The FET is paid by the manufacturers, not dealers.

SAN compnerd
10-12-2009, 4:06 PM
I believe that during the hearings on the lead ammo ban, the figure 65 million was brought up by one of the NRA folks. Of course thats just a drop in the bucket for our state budget of over 100 billion so I guess Arnie didn't really care about a mere 65 million.

Dwight K. Schrute
10-12-2009, 4:28 PM
I am not leaving California in an attempt to run it into the ground with my missing tax dollars. Lets say California actually MADE a bunch of money from AB962, that money would be wasted just like every other cent that is given from every other tax in this state. California's problems aren't a lack of money, it's a lack of responsibility.

QFT

Quser.619
10-12-2009, 7:40 PM
I asked my state Senator about the loss in tax revenue, Christine Kehoe, she replied that they believed they would off-set those losses in savings from the decreased amount of gun shot related hospital expenses. F'n clueless, like this is going to stop criminals, but it may very well make the average gun owner a criminal... Something I believe is their goal all along!

catnipper
10-12-2009, 8:15 PM
I just go back from hunting in AZ, stopping at Cabela's in Phoenix, buying fuel before returning to the PRK. I don't buy ammo here, I don't hunt here anymore. You fight fire with fire....

Sunwolf
10-12-2009, 8:43 PM
Loss of ammo sales tax may be a drop in the bucket but the bucket has a hole in it and it continues to leak.
No hunting license from me ,no ammo sales,no clothing,no shoes and I will buy tires out of State.I can think of some more that I won`t buy.

RaceDay
10-12-2009, 8:54 PM
The state assessed the cost of 10% decline in ammo sales as a million dollars

http://www.aroundthecapitol.com/billtrack/analysis.html?aid=33888

Larua
10-12-2009, 9:16 PM
The state assessed the cost of 10% decline in ammo sales as a million dollars

http://www.aroundthecapitol.com/billtrack/analysis.html?aid=33888

(0.0825*0.1)x = $1,000,000

x ~= $121,000,000 total ammo sales

That's a lot of ammo...

Trakker
10-12-2009, 10:23 PM
Vegas and Scottsdale are getting my business.
I have limited what i buy just to not pay the damn sales tax.
I only buy my guns locally now to support my FFL.

CalNRA
10-12-2009, 10:29 PM
California has a knack of boosting the economy of Nevada. Now PMC probably wishes it didn't shut down the factory in Nevada.

bigcalidave
10-12-2009, 10:43 PM
I think this law will increase sales in California. I've been buying all of my ammo online for over 10-years. But come Feb 1, 2011 i'll have to go to walmart or a gunstore for handgun ammo (and pay significantly more).

I'll bet some gun stores are thrilled this passed.

You can forget about walmart, they won't do the extra work. Have you met the people at the sporting goods counter? lol, they can't be trusted to fill out a form properly. It's hard enough for walmart to sell alcohol properly. You can probably also forget about any other store that isn't actively selling lots of guns, any store that has a small ammo department, and probably a lot of gun show vendors. So, not just walmart, but forget kmart, big 5, sports authority, etc etc etc. None of these businesses will see the value in having to provide training and paperwork responsibility to maintain a handgun ammo section.

I will never buy ammo in CA after this goes into affect. Ever. And if I have to plan a trip out to reno to get ammo, I'll be bringing a lot of cash and buying a lot of other stuff at the same time, why support CA at all?

TRICKSTER
10-12-2009, 10:49 PM
I asked my state Senator about the loss in tax revenue, Christine Kehoe, she replied that they believed they would off-set those losses in savings from the decreased amount of gun shot related hospital expenses. F'n clueless, like this is going to stop criminals, but it may very well make the average gun owner a criminal... Something I believe is their goal all along!

I thought that the gun grabbers were claiming that all those crime guns were coming in from the Reno gun shows. Wouldn't it make sense that the ammo will also now come from there.