Details of Public Law 119-21, section 70436 , One Big Beautiful Bill Act

Under prior federal law, a $200 transfer tax applied to all firearms transferred except for any weapon classified under IRC section 5845(e) which was subject to a transfer tax of $5. The provision continues to apply a $200 transfer tax for machineguns and destructive devices, and reduces the tax to $0 for any other firearm transferred. Additionally, under prior federal law, a $200 tax applied to the making of a firearm, for each firearm made. This provision reduces the tax for making a firearm to $0 for any firearm that is not a machinegun or destructive device.

Existing law imposes a tax of 11 percent on the sale of firearms by manufacturers, producers, and importers, but provides an exemption from that tax for firearms subject to the transfer tax described above. The provision would allow the exemption for firearms that are subject to the $0 transfer tax by deeming those firearms as transfer tax paid.

The provision continues to apply a $200 transfer tax for machineguns and destructive devices and reduces the tax to $0 for any other firearm transferred.

This provision reduces the tax for making a firearm to $0 for any firearm that is not a machinegun or destructive device.

The provision would allow the exemption for firearms that are subject to the $0 transfer tax by deeming those firearms as transfer tax paid.

California does not conform to the federal making and transfer tax of firearms.