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Firearms & Ammunition Excise Tax

Concerning a new excise tax related to firearms, and, in connection therewith, contingent on voter approval of the new tax and the retention by the state of all revenue generated by the new tax at the 2024 general election, levying an excise tax on the net taxable sales of gun dealers, gun manufacturers, and ammunition vendors from the retail sale in this state of any firearm, firearm precursor part, or ammunition, requiring the excise tax revenue to be spent for mental health services, including for military veterans and at-risk youth, school safety and gun violence prevention, and support services for victims of domestic violence and other violent crimes, and making an appropriation.
2024 Regular Session
Fiscal Policy & Taxes
Bill Summary

Subject to voter approval at the November 2024 general election, beginning April 1, 2025, the bill levies an excise tax on firearms gun dealers, firearms gun manufacturers, and ammunition vendors (vendors) at the rate of 11% 9% of the gross net taxable sales from the retail sale of any firearm gun , firearm gun precursor part, or ammunition in this state and allows the state to collect and spend all revenue generated by the tax notwithstanding any limitations in section 20 of article X of the state constitution or any other provision of law. Such retail sales to peace officers and law enforcement agencies and active duty members of the armed forces of the United States are exempt from the excise tax. In addition, such retail sales made during any month are exempt from the excise tax if the total amount of gross taxable sales made by the firearms dealer, firearms manufacturer, or ammunition vendor during the month are less than $2,000 only vendors doing business in the state, defined in the bill as making sales of guns, gun precursor parts, or ammunition, in excess of $20,000 in a calendar year, are subject to the excise tax . Excise tax. Every firearms dealer, firearms manufacturer, and ammunition vendor engaged in the retail sale of firearms guns , firearm gun precursor parts, or ammunition in this state is required to file a return and remit the excise tax due on a monthly basis, provide specified information to the executive director of the department of revenue ( department executive director ) in the return, and maintain specified records that must be available for inspection by the department. Additionally, the bill imposes a registration requirement, making it unlawful for any person to engage in the business of a gun dealer, gun manufacturer, or ammunition vendor in the state without first having registered as a vendor with the executive director. Allocation of tax revenue. The bill requires all money received and collected in payment of the excise tax to be transmitted for ultimate deposit in the firearms and ammunition excise tax cash fund (fund) created in the bill. All such money and any fund investment earnings must then be transferred as follows:

  • The first $45 $35 million in the first fiscal year and that amount as adjusted for inflation or deflation in each fiscal year thereafter must be transferred to the Colorado crime victim services fund (victim services fund) in the division of criminal justice (division) of the department of public safety for crime victim services grants;
  • The next $5 $10 million in each fiscal year must be transferred to the victims and witnesses assistance and law enforcement fund for local judicial districts school security disbursement program cash fund for the purpose of funding the school security disbursement program ;
  • The next $5 $10 million in each fiscal year must be transferred to the victim services fund for mass tragedy response and prevention programs; except that any money that is transferred but not spent or encumbered for that purpose in a given fiscal year may be used by the division for additional crime victim services grants behavioral and mental health cash fund, with $5 million being used by the behavioral health administration (BHA) for the purpose of continuing and expanding access to behavioral health crisis response system services for children and youth and the other $5 million being used by BHA, in coordination with the division of veterans affairs, to continue and expand the veterans mental health services program ; and
  • The next $4 million in each fiscal year must be transferred to the wildlife cash fund in the division of parks and wildlife of the department of natural resources for administration and enforcement of wildlife laws against the illegal use of firearms;
  • The next $2 million in each fiscal year must be transferred to the wildlife cash fund for programs to support shooting and shooting range safety; and
  • Any remaining money in each fiscal year must be transferred to the victim services fund for crime victim services grants.

Subject to annual appropriation by the general assembly, the department of revenue may expend money from the fund for direct and indirect costs associated with implementing and administering the excise tax. Additionally, on June 30, 2025, and June 30, 2026, the state treasurer shall transfer from the fund to the general fund an amount of money equal to the amount of money used in the state fiscal years 2024-25 and 2025-26 from the general fund to pay the costs of implementing and administering the excise tax.

The bill also makes conforming amendments to the administration provisions of title 39 regarding the executive director's authority to implement and administer the excise tax.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)




Bill Text

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The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details