Industry Topics for Tax Guide for Sellers of Firearm and Ammunition Products

The Firearms, Firearm Precursor Parts, and Ammunition Excise Tax

The Firearms, Firearm Precursor Parts, and Ammunition Excise Tax (FET) is imposed on the gross receipts of retail sales (for example, sales to consumers) in California of any firearms, firearm precursor parts, or ammunition made by licensed firearms dealers, firearms manufacturers, and ammunition vendors at the rate of 11 percent (R&TC section 36011).

Visit our Tax Rates – Special Taxes and Fees webpage to view current and historical FET rates.

FET Gross Receipts

For the purposes of FET gross receipts include the sales price of the firearms, firearm precursor parts, or ammunition and all charges related to the sale, such as any business expense separately added to any taxable sale listed separately on the invoice or receipt provided to the purchaser.

Sales Tax in General

Your retail sales of firearms, firearm precursor parts, ammunition products, and any other tangible personal property you sell in California are generally subject to sales tax, unless the law provides a specific exemption.

In addition to the sales price of the item being sold, the following items must also be included in the gross receipts subject to sales tax:

  • Delivery charges when retailers make deliveries with their own vehicles. For more information on shipping or delivery charges, see publication 100, Shipping and Delivery Charges
  • Any business expense separately added to any taxable sale on the receipt to your customer.

The sales tax rate is comprised of different components: a state tax rate, the local tax rate, and any district tax rate that may be in effect. The tax rate varies across the state and will generally depend on the location of your business. You may look up the current sales and use tax rate by visiting our Find a Sales and Use Tax Rate webpage.

Sales Tax Reimbursement

As a retailer, you are liable for the sales tax on your taxable sales, and you must report and pay the sales tax to us. A retailer has the option to collect sales tax reimbursement from their customers, but it is not mandatory.

If sales tax is included in the sales price, you must post a sign notifying your customers that the sales tax is included in the sales price. If signage is not posted on the premises visible to the customer, then sales tax must be based on the sales price and added to the receipt.

Sales for Resale and General Exemptions

Sales for Resale

A sale for resale is not subject to sales and use tax or the FET. However, you should be aware that a Federal Firearms License (FFL) does not qualify as a resale or exemption certificate even though this license, combined with a copy of a seller's permit, may contain some of the essential elements specified for a resale certificate. As a gun dealer, you are required to furnish a resale certificate to your vendor or receive a resale certificate from your customer as prescribed in Regulation 1668, Resale Certificates. These certificates should be provided to your vendors and retained in your records for no less than four years.

To help you meet these sales for resale requirements, you may use form CDTFA-230, Resale Certificate, available on our website. For more information, please see publication 103, Sales for Resale.

General Exemptions

Sales to the U.S. government are generally exempt from sales and use tax. However, these sales may be subject to the FET (see the FET Exemptions section below for more information).

Sales made in interstate or foreign commerce are generally exempt from sales and use tax and the FET.

FET Exemptions

The following retail sales of firearms, firearm precursor parts, or ammunition are exempt from the FET, but would still be subject to the sales and use tax when: 

For more information about exemptions and exclusions that may apply, see publication 101, Sales Delivered Outside of California and publication 102, Sales to the United States Government.

Delivering and Registering Firearms or Ammunition for Out-of-State Retailers

The California Penal Code requires that the sale of a firearm or ammunition from an out-of-state retailer be made through a registered California Firearms Dealer (CFD). In a typical transaction, the California purchaser will contact the CFD to make arrangements for the transfer of the firearm or ammunition from the out-of-state retailer. The out-of-state retailer will then ship the firearm or ammunition to the CFD to log it into their Federal Acquisition/Disposition books, complete the DOJ Firearms Dealer Record of Sale (DROS), and deliver the firearm to the California purchaser.

When a California Federal Firearms Licensed (FFL) dealer completes the registration and transfer paperwork and delivers a firearm or ammunition to a California purchaser on behalf of either an out-of-state private party or an out-of-state retailer who is not registered with us, the California FFL dealer is presumed to be the retailer of the firearm or ammunition and generally owes sales tax on the total amount of the sales price including any service charge or handling fees but excluding the DROS fee. Only the California FFL dealer possessing the firearm or ammunition has the authority to transfer title to the purchaser. As a California FFL dealer, you should obtain a copy of the sales contract or invoice from the out-of-state seller or purchaser to determine the proper amount of taxes due on the sale.

Please be aware that the DOJ transfer fee is not subject to sales tax.

Registering a Firearm from a California Private Party Seller

When a California private party seller brings a California Federal Firearms Licensed (FFL) dealer a firearm and requests that they find a buyer, the California FFL dealer is considered the consignee and retailer of the firearm and liable for sales tax and FET on the subsequent sale of the firearm.

However, when a California FFL dealer completes the registration paperwork for a California private party who is selling a firearm to a California purchaser and the seller and purchaser have negotiated the terms of sale in advance, and then bring the firearm to the California FFL dealer to meet the statutory requirements for the documentation and registration of the transfer, the California FFL dealer is not considered to be the retailer of the firearm and not be responsible for the  sales and use taxes, provided the California FFL dealer does not take title to the firearm at any time during the transaction. The private party seller would be liable for the sales tax unless the transaction qualifies for an exemption. For example, the sale of a firearm between California private parties may be exempt from sales tax if the sale meets the provisions of an exempt occasional sale as provided in Regulation 1595, Occasional Sales–Sale of a Business–Business Reorganization.

Gun Clubs, Memberships, and Giveaways

If you operate a gun club or shooting range that furnishes ammunition with your trapshooting or similar activities for a single lump sum price, you are the consumer of the ammunition and other materials (for example, clay pigeons, blue rocks, or targets) furnished to your members. As a consumer, you owe sales and use tax on your purchases of these items to your vendors and will have to pay your vendors the FET on your purchases.

However, if you operate a gun club or shooting range and sell ammunition, firearms, food, or other property to your members for a separate price, you are the retailer of those items, and those sales are subject to sales tax and FET. You may purchase these items without sales tax by issuing your vendor a resale certificate. See the Sales for Resale (link to: Sales for Resale title above) section above.

Membership fees and dues paid by members solely for the use of the facilities of a gun club or shooting range are generally not subject to sales tax or FET. However, when a gun club or shooting range provides tangible personal property with the purchase of a membership, such as a “free” shotgun or rifle, to entice a customer into joining, then the gun club or shooting range is the retailer of that property and owes sales tax and FET on the fair retail selling price.

Additionally, your membership fees related to the anticipated retail sale of tangible personal property are subject to sales and use tax if you sell property only to members and the membership fee exceeds $70 per year, or regardless of the cost of membership, you sell property for less to paid members than to someone who has not paid the fee.

Out-of-State Sellers

If you are an out-of-state gun dealer, you may be required to register with us for a seller's permit if you are a retailer engaged in business in California. Out-of-state retailers are not required to register with us for a FET Certificate of Registration. A retailer “engaged in business in this state” specifically includes, but is not limited to, any of the following:

  • Any retailer maintaining, occupying, or using, permanently or temporarily, directly, indirectly, or through a subsidiary or agent, by whatever name called, an office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business.
  • Any retailer having any representative, agent, salesperson, canvasser, independent contractor, or solicitor operating in this state under the authority of the retailer or its subsidiary for the purpose of selling, delivering, installing, assembling, or taking of orders for any tangible personal property.
  • Any retailer deriving rentals from a lease of tangible personal property situated in this state.
  • Any retailer that owns or leases real property or personal property such as machinery and equipment, furniture, or computer servers in this state.
  • Beginning April 1, 2019, any retailer that has total combined sales of tangible personal property for delivery in this state by the retailer and all persons related to the retailer that exceed five hundred thousand dollars ($500,000) in the preceding or current calendar year (see Use Tax Collection Requirements Based on Sales Into California Due to the Wayfair Decision).

If you are an out-of-state seller and your only presence in California is for conventions or trade shows, you are not considered to be engaged in business in California if:

  • Your presence in this state is not more than 15 days during any 12-month period, and
  • You did not derive more than $100,000 of net income during the prior calendar year from those convention or trade show events.

However, if you intend to sell merchandise at a trade show or convention, you must register with us for a temporary seller's permit. You must also collect and pay the sales tax on taxable sales made during the event, even though you are not required to hold a regular seller's permit. If you sell items at events held on state-designated fairgrounds, you must separately report these sales when filing your sales and use tax return.

For more information, please see our Tax Guide for Out-of-State Retailers.