Laws, Regulations and Annotations

Amounts for Reimbursement Not Included in Gross Receipts. California Firearm, Ammunition, and Firearm Precursor Part Excise Tax (CFET) reimbursement should not be included in gross receipts for purposes of determining the amount of CFET that the retailer owes.

Gross receipts for purposes of the CFET should be measured in the same manner as gross receipts are measured for purposes of determining the sales tax due to the state by the retailer. Thus, where a retailer collects reimbursement from its purchaser for the amount of CFET due to the state by the retailer on the transaction, and the retailer communicates to the purchaser that the amount charged as reimbursement is for the CFET due to the state by the retailer, such as by separately stating the charge on the receipt or other invoice as “CFET reimbursement,” the amount the retailer collects from its purchaser for CFET should be excluded from the retailer’s gross receipts for purposes of determining the amount of CFET due. 6/12/2024.