11% excise tax

[peregrine1220]

Picking up my last 2 CA guns before stupid July 1st. F CA

[boltstop]

From the actual text of the law:

36021.

(a) There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to any active or retired peace officer or any law enforcement agency employing that peace officer.

Reinforcing second class citizenship for the vast majority of Californians.

[harbormaster]

From the actual text of the law:

36021.

(a) There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to any active or retired peace officer or any law enforcement agency employing that peace officer.

Reinforcing second class citizenship for the vast majority of Californians.

Protecting the union vote. Period

[jayman31]

Don't forget the Transvestites, Ukrainians, and Palestinians!

.

It's the race to see who can be the most oppressed. I think the Palestinians just took the lead.

[Enthused]

It's the race to see who can be the most oppressed. I think the Palestinians just took the lead.

Thankfully we have "Queers for Palestine" spreading awareness of this significant issue.

As for the 11%, go out and buy ammo now. Ammo will never be cheaper in this state than it is this very moment. If you were planning on buying 10 boxes of something, buy 20 boxes of it instead.

[harbormaster]

Sad but it appears ammo prices have already prepped for this; 9mm was 11.99 a box just a few weeks ago on a few specials and now I can't find for less then $15 on much of anything.

[Ki6vsm]

It's a weird law. It won't just be the manufacturer who's on the hook for the tax supposedly. The law says:

CHAPTER 2. Imposition and Rate of Tax

36011.
Commencing July 1, 2024, an excise tax is hereby imposed upon licensed firearms dealers, firearms manufacturers, and ammunition vendors, at the rate of 11 percent of the gross receipts from the retail sale in this state of any firearm, firearm precursor part, or ammunition.

So between the mfr and the vendor, who decides who pays? I'm thinking it'll be the last point along the chain leading to the retail purchase. So that'll be the vendor/store selling the firearm or ammunition to you or I. Expect to see a new "tax" line item in the receipts after June 2024.

And in case anyone's wondering, they define "firearm precursor parts" pretty strictly in this doc:

https://oag.ca.gov/system/files/media/bof-reg-rev-fpp-id-guidebook.pdf

So basically it's just unfinished frames and receivers. Both "frame" and "receiver" are also completely defined in that doc. Frame applies only to handguns and Receiver apply only to long guns.

It's a relief that even though "receiver" includes the part "that provides housing or a structure for the primary component designed to block or seal the breech prior to initiation of the firing sequence", there is a carve-out for split-receiver rifles like AR15s. On an AR, they specifically say that only the Lower is considered a receiver, so we won't be seeing any new tax on upper receivers. And completed AR upper receivers aren't unfinished so they wouldn't be considered "precursor" parts anyway. But it's good to know the State isn't yet requiring AR uppers to be serialized. You just never know about those people.

[Steve G]

[jimbo74]

That's their goal. CA is pricing all sales out of the market.

It's not about legal guns anymore. The illegal guns the criminals are using aren't getting taxed.....

[symbology]

Interesting question to ponder. Since the tax is not levied on the consumer, but on the manufacturer who will undoubtedly pass it on in new pricing, I can imagine that existing firearms that were sold before the tax might follow the increase in the used market. If they don't track the increase, or course they are likely to be a better bargain and sell faster.

According to Turner's if you do not pick up your firearm by 6/30 the buyer will be charged the tax. This is all very confusing. Who exactly is paying, and when does it get levied? The consumer pays, but then the business / state needs to figure out and charge the mfg for the tax? What the hell.

[socal m1 shooter]

So PPT is not taxed at 11%? A private party selling a firearm would not fall under the definitions of "licensed firearms dealers, firearms manufacturers, and ammunition vendors" would they?

[Ki6vsm]

According to Turner's if you do not pick up your firearm by 6/30 the buyer will be charged the tax. This is all very confusing. Who exactly is paying, and when does it get levied? The consumer pays, but then the business / state needs to figure out and charge the mfg for the tax? What the hell.

Agreed. You might have a legal right to tell Turner's, "Hell no, that tax isn't my problem, it's yours." And they can't ethically (in my opinion) work the tax into the price once you've already paid in full and are simply waiting out the 10-day delay.

[Preston-CLB]

As I understand it, if you paid for an item listed under SB 28 on or before July 1, 2024, the excise tax is not applicable even if the gun/item is picked up after that date. If the item is not fully paid for on July 1, the tax will be added.

Every gun I have purchased was paid in full when the DROS was started. Additionally, any ammo I've purchased has been paid in full before I walked out the door. If Turdners is doing as described, you have a right to say, "Nope."
-P

[Enthused]

Turner's store policy does not necessarily align with what the law is. One example of this is their 1 in 30 fail policy. If you attempt to purchase a 2nd firearm within your 30 day window, even if you are a day or even an hour short of exiting the 30 day window, Turner's will tell you to come back in 30 days and try again. You could simply re-do the DROS and background check a day later and it would work, but store policy makes them tell the customer/hold the firearm 30 extra days regardless of how much time is actually left.

[Silence Dogood]

So PPT is not taxed at 11%? A private party selling a firearm would not fall under the definitions of "licensed firearms dealers, firearms manufacturers, and ammunition vendors" would they?

That is correct. "No" to both of your questions. Buyer pays the seller directly. Let's say the agreed upon PPT price is $500. Buyer is giving that money to the seller directly and the FFL is collecting just the DROS fee and $10 to do the transfer, at least every time I have done it. That means there is nothing of value being sold from the FFL's inventory which would lead me to speculate no 11% excise tax. Even if I am wrong about that, 11% of $47.50 is <$6.