The federal government already taxes the sale of guns and ammunition nationwide. The government gives that money to the states, which spend it on wildlife conservation and hunter-safety programs.
California’s proposed tax, if it becomes law, would be 11% — matching the highest tax imposed by the federal government on guns.
Most states don’t have a special tax just for guns. Pennsylvania collects a $3 surcharge on gun sales and uses the money to pay for background checks. Fees in California total more than $37 on gun sales, with most of that money covering the cost of background checks.
The bill — authored by Assemblymember Jesse Gabriel, a Democrat from Encino — cleared the California Senate on Thursday. It has already passed the state Assembly, but Assembly members must vote on it one more time before sending it to Democratic Gov. Gavin Newsom’s desk.
“Don’t let politics stand in the way of saving the lives of our children and providing mental health care in our school districts,” Democratic state Sen. Anthony Portantino said. “Fear should not be on the brow of a parent when they send their kids to school.”
Unclear if Newsom Will Sign Bill
It’s unclear if Newsom will sign it into law. Newsom has opposed some high-profile tax increase proposals in recent years. But he has also been on a crusade to improve gun safety, signing a law last year that lets private citizens enforce the state’s ban on assault weapons by filing civil lawsuits against anyone who distributes the weapons, parts that can be used to build the weapons, guns without serial numbers, or .50-caliber rifles.
California’s proposed tax would not apply to people who buy guns. Instead, the state would make the businesses that sell guns and ammunition pay the tax. However, most of the time businesses will raise prices to cover the cost of the tax. The tax would not apply to police officers and it would not apply to businesses with sales of less than $5,000 over a three-month period.
“It’s a poll tax. It’s a tax on exercising a constitutional right,” said Chuck Michel, president of the California Rifle and Pistol Association, who opposes the tax. “We’re going to have to file a lawsuit to challenge it.”
The federal tax on guns and ammunition has been in place since 1918 and has survived multiple lawsuits. But things changed last year when the U.S. Supreme Court imposed a new standard for interpreting the nation’s gun laws. The new standard relies more on the historical tradition of gun regulation rather than public interests, including safety.
A legislative analysis of the California proposal said it is an “open question” whether a lawsuit challenging the tax would be successful.
What Taxes Would Fund
The tax would take effect on July 1 and would generate about $159 million in revenue annually, according to an estimate from the California Department of Tax and Fee Administration. The first $75 million of that money would go to the California Violence Intervention and Prevention Grant Program. In 2020, the program funded projects targeting young people in gangs, including sports programs, life coaching, and tattoo removal.
The next $50 million would go to the State Department of Education to enhance safety at public schools, including physical security improvements, safety assessments, after-school programs for at-risk students, and mental and behavioral health services for students, teachers, and other school employees.