LOS ANGELES — A new shipment of 15 guns arrived at LA Firearm Supplies in Burbank Tuesday — the tag attached to each listing its price before tax.  

For over 100 years, most gun purchases have been subject to a federal excise tax of 10% or 11% depending on the type of weapon. 

But fast forward to next summer and the tax paid on guns and ammunition purchased in California will be double what it is today.


What You Need To Know

  • Last week, Gov. Newsom signed a law that will add an additional 11% state tax on firearms and ammunition

  • California is the only state in the U.S. to levy a state tax on firearms and ammo on top of federal excise tax

  • Some of the money collected will go toward improving physical security at public schools, as well as fund mental and behavioral health services for students and teachers alike

  • Officials estimate the tax will raise $160 million annually

Last week, Gov. Gavin Newsom signed a law that will add a 11% state tax on firearms and ammo — making California the only state in the U.S. to have such a tax.

Harry B — who chose not to use his last name — is the co-owner of LA Firearm Supplies. He says on a firearm listed for $1,800, that really adds up.

“Probably another couple hundred bucks easy,” he explained, “which is a decent amount.”

The new law goes into effect in June 2024 and officials estimate it will generate $160 million a year. Harry, however, thinks they made a major miscalculation.

“You’re gonna lose sales on the retail side,” he explained. “The few sales that you do make will not generate the amount of money that they project.”

Whatever it amounts to, the law stipulates the money be used to fund school safety and violence prevention programs, including initiatives to prevent school shootings. 

(Spectrum News/Tara Lynn Wagner)

That’s welcome news to Jessica Stamen, a volunteer with Moms Demand Action for Gun Sense in America.

“I am thrilled,” she said of the new legislation, one of two dozen gun control bills signed by the governor last week. “I think like every mom in America, when I dropped my kids off at school, the thought enters my mind every day. You know, what if something happens to my kids at school?”

The first $75 million collected will fund programs aimed at young people in gangs, including life coaching and tattoo removal. 

The next $50 million will go to the State Department of Education to improve physical security at public schools, and fund after-school programs for at-risk students as well as mental and behavioral health services for students and teachers alike.

Stamen feels that this will ultimately help break the cycle of violence and it makes sense to her that gun owners play a part in that effort.

“We understand people are going to buy guns, so let’s tax them so that the money can be used to stop gun violence, right?” she said. “The problem is ultimately gun violence.”

But Harry says taxing his customers has little to do with gun violence. 

He mainly caters to security professionals or gun hobbyists like Sylvestre Barraza who recently came in to purchase a 125th anniversary Winchester. Harry’s business partner Edgar says the law does nothing to stop criminals from obtaining guns illegally or purchasing ghost guns and parts on the internet. 

They argue that the burden of the law will land on those who already follow it.

“They’re paying all this extra money for doing everything the right way,” Harry said. 

 

Edgar expects to see a bump in sales before next summer, as people try to purchase firearms and ammo before the tax hike. But after that, they’ll have to wait and see what the effect on sales is. 

Ultimately, Harry says, big corporations won’t feel the pinch should gun sales in California start to lag. It will be small businesses like his that will likely see the change in their bottom line.  

Gov. Newsom expects some of the new gun control law will be challenged in court. In fact, the California Rifle and Pistol Association has already sued to block at least one. 

But Harry doesn’t get involved in that.

California may have tighter laws around firearms than other states, but he says aside from voicing his opinion at the polls, there’s not much he can do.

“I love California,” he said. “And I was born and raised here. This is my home. So I just got to work with it.”

Even if he sometimes feels like he and his business are caught in the political crosshairs.