Frequently Asked Questions (FAQs) for Sellers of Firearm and Ammunition Products

• The definitions of “firearm,” “firearm precursor part,” and “ammunition” can be found in Penal Code section 16520, subds. (a) and (b), section 16531, Revenue and Taxation Code section 36001, subds, (a) and (c) and Penal Code section 16150.
• If you would like confirmation that a specific item meets these definitions, please contact the California State Department of Justice's (DOJ) Bureau of Firearms (BOF). If you need assistance determining the taxability of your firearm, firearm precursor part, or ammunition, please contact us.

• CFDs must register with us through our Taxpayer Online Service Portal. If you do not already have a username and password, please go to our Taxpayer Online Service Portal and select Sign Up Now.
• If you need any assistance with our Taxpayer Online Service Portal or registration, view our Online Services Registrations webpage or call our Customer Service Center at 1-800-400-7115 (TTY:711) and select the option for Special Taxes and Fees. Customer service representatives are available Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except state holidays.

• There is no legal requirement that a retailer display its CFET Certificate of Registration publicly.
• We do not require retailers to print their certificates of registration. However, DOJ's BOF may require you to provide printed copies when applying for or renewing your licenses with them. Please reach out to DOJ's BOF for guidance on their application and renewal processes.

Users can log in to our Taxpayer Online Service Portal to view and maintain all their accounts with us. Once logged in, users can print a copy of their certificates of registration by selecting their California Firearm and Ammunition account type, then under the I Want To menu, select More, then under the Location Maintenance options, select Print Firearm and Ammunition Excise Tax Certificate of Registration.

• Generally, any discretionary fees or charges that the CFD may require the purchaser to pay as part of the sale of a firearm, firearm precursor part, or ammunition (firearm product) are included in gross receipts.
• Generally, shipping charges are included in gross receipts. Charges for shipment directly to the purchaser may be excluded from gross receipts. Because CFDs may not ship firearms directly to their customers, this exclusion from gross receipts would typically not apply to CFDs.
• Examples of other fees and charges that are included in gross receipts and are subject to the CFET include, but are not limited to:
  • Merchant credit card fees
  • Discretionary transfer fees
  • Handling fees
  • Fabrication labor charges (for more information on labor charges, view our publication 108, Labor Charges)

• Generally, any fees or charges that are imposed on the purchaser of a firearm product by a government entity which the retailer is required to collect from the purchaser and remit to the state are excluded from gross receipts and not subject to CFET.
• Examples include, but are not limited to:
  • Dealer Record of Sale (DROS) fee
  • Firearms Safety fee
  • Safety and Enforcement fee

All retail sales of firearm products are subject to CFET unless an exemption applies. This is the case regardless of whether the item sold is new or used.

• Yes. The CFD cannot purchase these firearms products for resale or issue a resale certificate. The sale of the firearm product to the CFD is a retail sale and the CFET is due on that retail sale.

• The sale of a firearm product is deemed to be made when possession of the firearm product sold transfers to the purchaser. The sales should be reported to us in the period the sale actually occurs.
• For example, if a CFD charges a customer for a firearm on June 28, but the customer picks up the firearm from the CFD on July 8, for the purposes of sales tax and the CFET, the retail sale does not occur until July 8. The retail sale of the firearm is included in gross receipts for the period the retail sale was made (in this example, the reporting period that includes July 8). This is the case even if an invoice is issued and payment is received in a prior period.

• If the CFD requires as a condition of the retail sale non-firearm products to be sold with firearm products in order to receive the lump sum price, then the total lump sum price would be included in gross receipts and is subject to CFET.
• For example, the CFD offers a bundled package of a firearm and a holster for the lump sum price of $300. There is no option to purchase the firearm without the holster for a lower price. The entire $300 would be included in gross receipts and subject to CFET, not just the value of the firearm.
• This is the case even if the value of each item is separately stated.

• The total retail sales price for both items is included in gross receipts.
• For example, a CFD offers customers a “buy one box of ammunition for $50 and get a second box of ammunition for free.” The amount included in gross receipts and subject to CFET is $50.

• In general, if the shooting range purchased the firearms without paying sales or use tax and CFET at the time of purchase, the firearm rental receipts are considered a continuing sale and purchase (retail sale) and are subject to sales tax and the CFET.
• If the shooting range paid sales or use tax and CFET when purchasing the firearms for their rental inventory, the firearm rental receipts are not subject to sales and use tax or the CFET since the taxes were already satisfied.
• In short, the application of the CFET would follow the application of the sales and use tax for rental (lease) transactions.
• For more information on leases, please see our Tax Guide for Rental Companies.

• No. When a private party seller (consignor) brings a firearm to a CFD and requests that the CFD find a buyer, the CFD is considered the retailer (consignee) of the firearm and is liable for sales tax and the CFET on the sale of the firearm.
• For more information on consignment sales, view our publication 114, Consignment Sales.