Beginning July 2024, Chapter 231 of 2023 (AB 28, Gabriel) imposed an 11 percent excise tax on retail sales of firearms, firearm precursor parts, and ammunition, with some exemptions. We described this tax in more detail in a February post.
Budget Assumption Much Lower Than Original Estimate. As Chapter 231 went through the legislative policy process, the administration preliminarily estimated that the new firearm and ammunition excise tax would raise $159 million in 2024-25. In May 2024, the administration revised its estimate to $103 million. The recently enacted budget package assumed that 2024-25 revenue would be $65 million.
Preliminary Total for 2024-25: $58 Million. For firearm and ammunition excise tax returns filed for 2024-25, the total amount of tax due is $58 million—a bit lower than the budget package revenue assumption. Preliminary revenues tend to differ modestly from actual revenues for various reasons, such as delays in filing or payment.