Bill H.418 proposes the establishment of an excise tax on the sale of firearms and ammunition in Vermont. The bill introduces a new chapter, Chapter 204, to Title 32 of the Vermont Statutes, which defines key terms such as "ammunition," "firearm," and "licensed firearm dealer." The excise tax is set at 11 percent of the gross receipts from retail sales of firearms, firearm precursor parts, and ammunition. Licensed firearm dealers and ammunition vendors are responsible for collecting this tax at the time of sale, and they are allowed to retain 10 percent of the collected tax as compensation for their role in the collection process. The bill also specifies that the tax is separate from the general sales and use tax and outlines the record-keeping and reporting requirements for dealers.

Additionally, the bill amends existing law regarding the Domestic and Sexual Violence Special Fund to include revenue generated from the new firearms excise tax. This fund is intended to 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