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, clarifying what constitutes these terms for the purposes of taxation.

The bill also designates the Director of the Division of Taxation in the Department of the Treasury as responsible for collecting and administering the tax, with the authority to adopt necessary regulations for implementation. The tax is to be reported and paid monthly, and the bill stipulates that it will take effect immediately, applying to sales made starting from the first day of the first calendar quarter that occurs at least 30 days after its enactment.