The bill H.418 proposes the establishment of an excise tax on the sale of firearms and ammunition in Vermont, introducing a new chapter (Chapter 204) to the state's tax code. This excise tax will be set at 11 percent of the gross receipts from retail sales of firearms, firearm precursor parts, and ammunition, applicable to licensed firearm dealers and ammunition vendors. The tax will be collected at the time of a background check and is separate from the general sales and use tax. Additionally, licensed dealers will retain 10 percent of the tax collected as compensation for their role in collecting and remitting the tax.

Furthermore, the bill amends the existing Domestic and Sexual Violence Special Fund statute to include revenue generated from the newly established firearms excise tax. This fund will be managed by the Center for Crime Victim Services and will support budgeted grants to the Vermont Network against Domestic and Sexual Violence. The act is set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 13-5360