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 chapter defines key terms such as "ammunition," "firearm," and "licensed firearm dealer," and imposes an 11 percent excise tax on the gross receipts from the retail sale of firearms, firearm precursor parts, and ammunition. The tax is to be collected by licensed firearm dealers at the time of a background check and remitted quarterly to the state. Additionally, the bill specifies that a portion of the tax collected can be retained by the dealers as compensation for their role in tax collection.

Furthermore, the bill amends the existing Domestic and Sexual Violence Special Fund statute to include revenue from the newly established Firearms Excise Tax, which will be used 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