New firearm regulations force Coarsegold’s only gun store to shutter its doors

COARSEGOLD, Calif. (FOX26) — The only gun store in Coarsegold is now shutting down, and hunters in the mountain communities aren’t happy about it.

Because of new laws in California it’s making it more expensive and harder for firearms businesses to keep their doors open.

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“I’m a hunter, you know? I’ve always been around guns my whole life,” said Ryan Farrell the Owner of South Gate Firearm Supply.

He said that’s he started South Gate firearm supply five years ago.

But just after two and a half years in this location, he now plans on shutting down the business.

June was the first month that we didn’t make money. Then, in July, the taxes hit, and we lost even more money,” said Farrell. “I’m in business to be profitable, and if we’re no longer profitable, I’m no longer in business.

Farrell says because of new laws in California, firearm stores are required to have a million-dollar liability insurance policy add an additional 11 percent tax on customers.

“A $500 gun now costs about $650 out the door, which is huge,” he said.

Farrell also had to get more cameras.

“We had to invest about ten to $12,000 on the video and audio surveillance system that the state of California requires for the gun shops, so that was a big hit for us,” he said.

With all the additional costs, Farrell said he just can’t afford it anymore.

“Normal sale month is probably around $45,000 in gross sales in summer months,” said Farrell. It’ll dip down a little bit, maybe $40,000 or something, but this last July, our sales numbers were $22,000.”

Dustin Bushman said he’s been buying from South Gate Firearm Supply since it opened.

“He treated us like family and it’s just more stress on us, you know, now we’re going to have to buy from the big corporations and we can’t support a family.”

With the new laws, Bushman said feels like it’s going against the constitution.

“Almost feels like an infringement on our second amendment rights, do you know?” he said. “We’re getting taxed to the point of where we can’t buy our ammunition or our firearms and protect our livestock or hunt our game.”

Governor Gavin Newsom signed AB 1587, which requires banks and credit card companies to implement a merchant category code (MCC) to process firearms transactions.

This essentially impacts the sales, costs of firearms and ammunition, and the way the business operates in California.

16 states, including Florida and Idaho, have enacted laws to halt assigning MCCs from happening, calling this the Second Amendment Financial Privacy Act.

The last day for South Gate Firearm Supply will be August 31, 2024.