H 418 — An act relating to an excise tax on the sale of firearms and ammunition

Bill Text

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This bill establishes a new excise tax on the sale of firearms and ammunition in Vermont, creating specific tax collection and remittance requirements.

• 32 V.S.A. chapter 204

  CHAPTER 204. FIREARMS EXCISE TAX § 7631. DEFINITIONS As used in this chapter: (1) "Ammunition" has the same meaning as in 18 U.S.C. § 921(a)(17). (2) "Ammunition vendor" means a person who sells ammunition and meets the definition of vendor under subdivision 9701(9) of this title. (3) "Commissioner" means the Commissioner of Taxes. (4) "Firearm" has the same meaning as in 13 V.S.A. § 4017(d). (5) "Firearm precursor part" means an "unfinished frame or receiver" or "firearm control component" as defined in 13 V.S.A. § 4082. (6) "Licensed firearm dealer" means a person issued a license as a dealer in firearms pursuant to 18 U.S.C. § 923(a). (7) "Retail sale" means any sale for any purpose other than for resale by a licensed firearm dealer. (8) "Sales price" has the same meaning as in section 9701 of this title. § 7632. FIREARMS EXCISE TAX (a) There is imposed an excise tax on licensed firearm dealers and ammunition vendors equal to 11 percent of the gross receipts from the retail sale in this State of any firearm, firearm precursor part, or ammunition. (b) Retail sales of a firearm, firearm precursor part, or ammunition not covered by subsection (a) of this section shall be subject to an excise tax of 11 percent of the sales price, to be paid by the seller. Firearms excise tax shall be collected by a licensed firearm dealer at the time of a background check under 13 V.S.A. § 4019 and shall be remitted using the return described in section 7633 of this chapter. (1) Any amount collected in accordance with subsection (b) of this section shall be deemed to be held by the person in trust for the State of Vermont. The taxes collected shall be recorded by such person in an account so as to clearly indicate the amount collected and that the taxes are the property of the State of Vermont. (2) Notwithstanding subdivision (1) of this subsection, a licensed firearm dealer shall retain 10 percent of the tax collected pursuant to this subsection as payment for collecting and remitting tax on behalf of the State of Vermont. (c) The tax imposed by this section is separate from and in addition to the general sales and use tax imposed by chapter 233 of this title. The tax imposed by this section shall not be part of the sales price to which the general sales and use tax applies. (d) The Commissioner may adopt rules pursuant to 3 V.S.A. chapter 25 to carry out the administration and enforcement of this chapter. To the extent not inconsistent with this chapter, the provisions for the assessment, collection, enforcement, and appeals of the sales and use tax in chapter 233 of this title shall apply to the tax imposed by this chapter. (e) The tax imposed under this section shall not apply to a transfer exempt from background checks under 13 V.S.A. § 4019(f).

  This adds a new chapter that outlines the definitions and details of an excise tax on firearms and ammunition sales.

• 13 V.S.A. § 5360

  The revenues of the Fund shall consist of revenue from the Firearms Excise Tax established under 32 V.S.A. chapter 204, that portion of the additional surcharge on penalties and fines imposed by section 7282 of this title deposited in the Domestic and Sexual Violence Special Fund and that portion of the town clerks’ fee for issuing and recording civil marriage or civil union licenses in 32 V.S.A. § 1712(1) deposited in the Domestic and Sexual Violence Special Fund.

  This change incorporates the revenue from the new firearms excise tax into the Domestic and Sexual Violence Special Fund.

Action History

1. February 27, 2025

   Read first time and referred to the Committee on Ways and Means

Sponsors

• Candice White · Primary
• Chea Waters Evans · Primary
• Dara Torre · Primary
• Mary-Katherine A Stone · Primary
• Phil Pouech · Primary
• Jubilee McGill · Primary
• Kate Lalley · Primary
• Edye Graning · Primary
• Leslie Goldman · Primary
• Leonora Dodge · Primary
• Esme Cole · Primary
• Kevin "Coach" B Christie · Primary
• Bridget M Burkhardt · Primary
• Mollie S. S Burke · Primary
• Alyssa Black · Primary
• Daisy Berbeco · Primary
• Sarah "Sarita" C Austin · Primary
• Angela Arsenault · Primary

Subjects