California Dealers and Vendors Responsibilities:
Effective July 1, 2024, California is imposing an 11% FET (Firearms, Firearm Precursor Parts, and Ammunition Excise Tax) on the gross receipt of all retail sales involving firearms, firearm precursor parts, and ammunition sold by California licensed firearms dealers, firearms manufacturers, and ammunition vendors. This is an additional tax which will be paid on top of the existing sales taxes.
Starting July 1, 2024, California firearm dealers and manufacturers and ammunition vendors must retain a valid firearm and ammunition excise tax certificate of registration from the CDTFA.
California Transfer Dealers:
California firearm transfer dealers and manufacturers may be responsible for the sale taxes, if the out-of-state private party seller or retailer is not a registered retailer with the state.
If the out-of-state private party seller or retailer is not registered with the CDTFA, then the California FFL transfer dealer (CFD) completing the registration and transfer paperwork and delivering the firearm or ammunition to a California purchaser is presumed to be the retailer of the order and responsible for the sales taxes on the total amount of the sales price. The total amount includes service charge or handling fees but excludes the DROS fee (DOJ transfer fee).
Only the CFD possessing the firearm or ammunition has the authority to transfer title to the purchaser. The CFD should obtain a copy of the sales invoice from the out-of-state seller or request the invoice or copy of the order from the buyer to determine the proper amount of taxes due for the sale, so the transfer can be completed with the buyer.
For more information, please visit: Industry Topics for Tax Guide for Sellers of Firearm and Ammunition Products