Home California California Tax Hike Proposal on Firearm and Ammunition Sales Fails

California Tax Hike Proposal on Firearm and Ammunition Sales Fails

by ECT

On Wednesday, a bill that would have placed an excise tax on gun and ammunition retailers, not purchasers, to fund gun violence prevention programs failed to pass the State Senate.

The bill, which was introduced by Assemblymember Marc Levine (D-Marin County) died in a 20-12 vote with 8 senators failing to cast a vote.  It needed 27 votes to pass. This was the third time the bill had been introduced and failed–including last year.

According to the bill, it proposed a 10% excise tax on the sales of handguns while rifles, shotguns, ammunition and other parts to build firearms were at 11%. He proposed the excise tax begin July 1, 2023.

Upon introducing the bill, Levine pointed to the first five months into 2022, California has seen 1,159 incidents of gun violence, including 594 gun related deaths. According to the Gun Violence Archive, at this pace, California could end up with one of the highest yearly incidents of gun violence and gun related deaths in state history. As families across the state struggle to make sense of this devastation, Levine is taking action to end gun violence.

He said AB 1227 would generate over $118 million annually to fund proven programs that reduce gun violence in the communities that need it most.

Also on Wednesday, another firearm bill also failed to pass out of the State Legislator. Senate Bill 918 (CCW Reform), authored by Senator Anthony J. Portantino (D – La Cañada Flintridge), a bill that would have strengthened California’s conceal-carry laws failed to pass out of the State Assembly—this bill was in response to the Supreme Court decision expanding rights to carry firearms in public.


LEGISLATIVE COUNSEL’S DIGEST

AB 1227, as amended, Levine. Firearms and ammunition: excise tax.
Existing law establishes the California Violence Intervention and Prevention (CalVIP) Grant Program, administered by the Board of State and Community Corrections, to award competitive grants for the purpose of violence intervention and prevention.
Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.
This bill, the Gun Violence Prevention, Healing, and Recovery Act, would, commencing July 1, 2023, impose an excise tax in the amount of 10% of the gross receipts from the retail sale in this state of a handgun and 11% of the gross receipts from the retail sale in this state of a long gun, rifle, firearm precursor part, and ammunition, as specified. The tax would be collected by the state pursuant to the Fee Collection Procedures Law. The bill would require that the revenues collected be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, which the bill would establish in the State Treasury. The bill would require that 1/2 of the moneys received in the fund be used to fund gun violence prevention programs, gun violence prevention education, and gun violence prevention research, upon appropriation by the Legislature, and would continuously appropriate the other 1/2 of the moneys received in the fund to the Board of State and Community Corrections for the CalVIP Grant Program, thereby making an appropriation. The bill would require the Director of Finance to transfer, as a loan, $2,400,000 from the General Fund to the California Department of Tax and Fee Administration to implement these provisions, as specified.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
Because this bill would expand the scope of the Fee Collection Procedures Law, the violation of which is a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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