California Firearm and Ammunition Excise Tax (CFET) Return
General Information
We administer the California Firearms, Firearm Precursor Parts, and Ammunition Excise Tax law, enacted by the Gun Violence Prevention and School Safety Act (Assembly Bill 28, Stats. 2023, ch. 231).
Effective July 1, 2024, a licensed firearms dealer, ammunition vendor, or firearms manufacturer who makes retail sales (for example, sales to consumers) of firearms, firearm precursor parts, or ammunition in California must register with us for a California Firearm and Ammunition Excise Tax (CFET) Certificate of Registration (Revenue and Taxation Code [R&TC] section 36035).
In addition, a licensed firearms dealer, ammunition vendor, or firearms manufacturer making retail sales is required to report all sales transactions subject to the California Firearms, Firearm Precursor Parts, and Ammunition Excise Tax (CFET) and pay the amount of CFET due (R&TC section 36011).
Visit our Tax Rates — Special Taxes and Fees page to view current and historical CFET rates.
For additional information on the CFET, visit our Tax Guide for Sellers of Firearm and Ammunition Products page.
Filing Requirements
Every licensed firearms dealer, ammunition vendor, or firearms manufacturer making retail sales is required to file their California Firearm and Ammunition Excise Tax Return electronically, report all sales transactions subject to CFET, and pay the amount of CFET due. The return and payment are due on or before the last day of the month following the end of each quarterly reporting period. For example, if the reporting period is for the first quarter (January 1st through March 31st), the return and tax payment are due on or before April 30th. You must file a return for each reporting period, even if there is no reportable activity or no amount is due. You must retain a copy of the return on the business premises for our auditors to verify.
For information regarding CFET and general exemptions, visit the Industry Topics page of our Tax Guide for Sellers of Firearm and Ammunition Products, in the Sales for Resale and General Exemptions section.
Penalty and Interest
The penalty for filing a late return and/or late payment is ten percent of the amount due for the period. Interest also applies to late payments for each month, or fraction of a month, that the payment is late. (Fee Collection Procedures Law section 55042)
CFET Return Preparation
Gross Sales
The CFET is imposed on the gross receipts of retail sales (for example, sales to consumers) in California of firearms, firearm precursor parts, and ammunition made by licensed firearms dealers, firearms manufacturers, and ammunition vendors (R&TC section 36011). For the purposes of CFET, gross receipts include the sales price of the firearms, firearm precursor parts, and ammunition and all charges related to the sale, such as any business expense added to any taxable sale listed separately on the invoice or receipt provided to the purchaser. For example, a merchant credit card processing fee listed separately on the receipt is included in the calculation of gross receipts. The firearm, firearm precursor parts, and ammunition retail sales price will be the same as the amount used to calculate the selling price for sales and use tax purposes. Do not include the sales or use tax in this amount.
Enter your gross receipts from the total retail sales of firearms, firearm precursor parts, and ammunition. Enter the gross receipts from the total retail sales of firearms, firearm precursor parts, and ammunition for this reporting period.
Notes:- In any quarterly period, if the total gross receipts from the retail sales of firearms, firearm precursor parts, and ammunition are less than five thousand dollars ($5,000.00), those sales are exempt from CFET but would still be subject to the sales and use tax (R&TC section 36021(b)).
- If you have collected reimbursement for CFET on retail sales that are exempt from CFET and have not returned the excess amounts collected to your customers, you will have to report the CFET reimbursement collected in the Excess CFET reimbursement collected field of the California Excess Firearm and Ammunition Excise Tax (CFET) Collected screen and pay the amount collected to us.
California Firearm and Ammunition Excise Tax (FET) Information
Total gross receipts from retail sales of firearms, firearm precursor parts, and ammunition. (The system automatically populated this field with the value that was entered on the previous Gross Sales screen.)
Exemption: Retail sales to peace officers (active or retired) or law enforcement agencies employing a peace officer. Enter the gross receipts from the total retail sales of firearms, firearm precursor parts, and ammunition to active or retired peace officers or any law enforcement agency employing a peace officer for this reporting period. The gross receipts from these retail sales are exempt from CFET, but would still be subject to the sales and use tax (R&TC section 36021(a)).
Gross receipts from retail sales of firearms, firearm precursor parts, and ammunition subject to excise tax. The total gross receipts less the exempt amount. (The system will automatically calculate this amount.)
CFET rate. This is the excise tax rate for this reporting period. (The system will automatically enter this rate.)
Subtotal amount of CFET due. (The system will automatically calculate this amount.)
Excess California Firearm and Ammunition Excise Tax (CFET) Collected
If you have separately charged your customers amounts for CFET reimbursement that exceed the CFET amount due calculated on the return, enter the difference in the Excess CFET reimbursement collected field.
Note: Collecting excess CFET reimbursement can occur in the following situations:
- When the CFET is computed on a transaction which is not subject to the CFET.
- When the CFET is computed on an amount in excess of the amount subject to the CFET.
- When the CFET is computed using a CFET rate higher than the rate imposed by law.
- When mathematical or clerical errors result in an overstatement of the CFET on a billing.