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.
2024-25 Total 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. The administration lowered its estimate to $103 million in May 2024 and then to $65 million in May 2025. Current tax return data suggest that the total will be around $58 million.
Preliminary Total for Third Quarter of 2025: $13 Million. For firearm and ammunition excise tax returns filed for the third quarter of 2025, the total amount of tax due is $13 million—slightly below the quarterly average in the first year of the program. So far, we are not seeing any signs of revenue reaching the original estimate in the near future.