California Implements First-in-the-Nation Excise Tax on Firearms and Ammunition
LOS ANGELES, Sept 26 (Reuters) – California Governor Gavin Newsom has signed into law a groundbreaking excise tax on the sales of firearms and ammunition. The tax, which is set to go into effect in July 2024, is aimed at generating an estimated $160 million annually to prevent gun violence in schools and other areas.
The new California excise tax will add an 11% levy on top of the existing federal excise tax on guns and ammunition, which is currently set at a rate of 10 or 11% depending on the type of weapon. It is part of a larger package of gun safety bills that were signed by Newsom.
This measure comes just days after a federal judge struck down California’s ban on high-capacity ammunition magazines, arguing that it violated the Second Amendment rights of gun owners. Governor Newsom’s office said that his actions on gun safety were prompted by recent shootings across the country, which resulted in the deaths of at least 104 people over a 74-hour period.
In a statement, Newsom, a Democrat, expressed determination to continue the fight for gun safety, despite challenges from “radical judges.” He cited data showing that California’s gun-related death rate is more than 40% lower than the national average, attributing this to the state’s strict firearms laws.
Under the new law, the excise tax will be collected on the gross receipts of manufacturers, retailers, and dealers from gun and bullet sales within the state.
The tax measure is one of nearly two dozen gun safety bills that passed during the latest session of the Democratic-controlled California legislature and received Newsom’s signature. These bills were signed days after Newsom’s administration vowed to appeal the federal court ruling on high-capacity magazines.
One prominent bill in the package aims to strengthen California’s concealed gun permit law. It raises the minimum age for applying for such a permit from 18 to 21, imposes increased training requirements, and prohibits alcohol consumption while carrying a concealed weapon. The bill also prohibits concealed weapons in airports, schools, and other sensitive areas, with sponsors crafting it to withstand conservative legal challenges.
However, the California Rifle & Pistol Association, a gun rights advocacy group, has already filed a preemptive lawsuit against the new measure. Despite this opposition, supporters of the excise tax point to a 2021 report by gun control advocates, which revealed that gun deaths and injuries cost California $22.6 billion annually, with taxpayers directly paying $1.2 billion each year.
The implementation of this first-in-the-nation excise tax marks a significant step in California’s efforts to prevent gun violence and promote gun safety. The revenue generated from the tax will be crucial in funding programs and initiatives aimed at ensuring the safety of California residents.