This bill introduces a gross receipts tax on retail sales of firearms and firearms ammunition in New Jersey. Specifically, it imposes a 2.5 percent tax on gross receipts from the sale of firearms and a 10 percent tax on gross receipts from the sale of firearms ammunition. The bill outlines that gross receipts do not include sales delivered outside the state or to federal, state, or local government agencies. Additionally, it provides definitions for firearms and firearms ammunition, detailing the types of weapons and components included under these terms.

The bill also establishes the authority of the Director of the Division of Taxation to collect and administer the tax, with provisions for monthly reporting and payment. It allows the director to adopt necessary regulations immediately upon filing, which will remain effective for up to 360 days. The act is set to take effect immediately and will apply to sales made starting from the first day of the first calendar quarter that occurs at least 30 days after its enactment.