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HB24-1349

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 gross taxable sales of firearms dealers, firearms manufacturers, and ammunition vendors from the retail sale in this state of any firearm, firearm precursor part, or ammunition and requiring the excise tax revenue to be spent for crime victim support services, gun violence prevention, safe and lawful gun use, and enhancement of school safety.
Session:
2024 Regular Session
Subject:
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 dealers, firearms manufacturers, and ammunition vendors at the rate of 11% of the gross taxable sales from the retail sale of any firearm, firearm 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 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.

Excise tax. Every firearms dealer, firearms manufacturer, and ammunition vendor engaged in the retail sale of firearms, firearm 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 department of revenue (department) in the return, and maintain specified records that must be available for inspection by the department. 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 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 million in each fiscal year must be transferred to the victims and witnesses assistance and law enforcement fund for local judicial districts;
  • The next $5 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;
  • 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.
    (Note: This summary applies to this bill as introduced.)

Status

Introduced
Under Consideration

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Bill Text

Sponsors

Sponsor Type Legislators
Prime Sponsor

Rep. M. Duran

Sponsor

Rep. W. Lindstedt

Co-sponsor

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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