Guns and ammo excise tax ballot measure approved by Colorado Legislature

The Colorado Legislature passed two firearm-related bills in the final days of session, wrapping up a lawmaking term that saw further requirements for gun storage, concealed carry permits and where guns are prohibited, among other bills on their way to becoming law. 

Colorado voters will be asked this November to weigh in on a proposed excise tax on firearm and ammunition sales, with the generated revenue funneled to victim support and mental health services. If approved, it would go into effect next April.

The tax would be 6.5%, down from 11% at the introduction of the measure, House Bill 24-1349. That would generate about $39 million of annual revenue, according to bill sponsors. The bulk of that would go to the Colorado Crime Victim Services Fund, then smaller amounts to fund veteran mental health services, youth crisis response services and school safety. 

The victim services fund helps provide attorneys, temporary housing, and physical exams for domestic violence survivors and victims of other crimes.

“We want a way to sustain these services,” bill sponsor Sen. Janet Buckner, an Aurora Democrat, said on the Senate floor. “These are not small things — these are things that save lives. We must meet this need and we have found a way through this bill.”

California has a similar excise tax, enacted in 2023.

In recent years, the state has filled parts of funding gaps with pandemic relief money and a budget line item, but future funding is up in the air. Sponsors argue that an excise tax would create a predictable and sustainable revenue stream for the state’s victim services fund.

‘Assault weapons’ ban falters in final days of Colorado legislative session

Dealers who make more than $20,000 in annual sales would be subject to the tax. There is already a federal tax on firearms of either 10% or 11%, depending on the type of weapon.

The bill was sponsored by Buckner, Sen. Chris Hansen of Denver, Rep. Meg Froelich of Englewood and House Majority Leader Monica Duran, all Democrats. It passed the Senate on Wednesday with an 18-15 vote and the House in April on a 44-18 vote.

Opponents contended that an additional tax on firearms creates another burden on people looking to obtain a gun for self-defense and to exercise their constitutional rights. Sen. Kevin Van Winkle, a Highlands Ranch Republican, compared it to a poll tax since it concerns a constitutional right.

State license for dealers

The Senate also passed a measure, House Bill 24-1353, that would require firearm dealers to obtain a state license in addition to the federal firearm license. Those licenses would be $400 and generate a bit under $900,000 for the state.

Dealers would be ineligible for a license if they have been convicted of a firearm offense or were denied a federal license in the previous three years. Operating without a license could result in a felony and fine up to $250,000.

Opponents argued that the measure is a redundant requirement, while supporters say the additional state license would ensure that employees know current Colorado firearm laws. 

“There is oversight contained in this bill, of course. But to me, the more critical part of this bill is the training, because the folks in these stores are the front lines in preventing straw sales, in making sure that we are not selling firearms who intend to use it for self harm,” said bill sponsor Sen. Jeff Bridges, a Denver Democrat. “We want to make sure they have the training to do that job well.”

The Senate passed it on a 21-14 vote. The House passed it on a 40-21 vote in April.

A third bill that would require firearm owners to carry liability insurance died on the Senate calendar Tuesday night.

Here are the statuses of other firearm-related bills this session:

• Senate Bill 24-3: This bill appropriates about $1.5 million to the Colorado Bureau of Investigation to investigate illegal activity related to guns, such as attempts at illegal purchases and possession of a ghost gun. It was sent to Gov. Jared Polis on Monday.
• House Bill 24-1174: This bill sets stricter requirements for training to obtain a concealed carry permit in the state. The class needs to have eight hours of instruction, including a live fire portion and written exam. The bill also imposes a refresher class requirement for permit renewals. It is awaiting the governor’s signature.
• Senate Bill 24-131: The sensitive spaces bill was watered down during its legislative journey to apply only to polling places, schools and the state Capitol. It is on the governor’s desk.
• Senate Bill 24-66: Credit card companies will need to provide a merchant code for businesses that sell firearms and ammunition. The goal is for those financial institutions to be able to recognize potentially dangerous purchasing patterns. Polis signed the bill into law last week.
• House Bill 24-1348: This bill makes it illegal to leave a gun in a car unless it is in a locked container or locked in the trunk. It is on the governor’s desk.
• House Bill 24-1292: The bill to ban the sale and manufacture of so-called “assault weapons” in Colorado died in its Senate committee when the sponsor requested it be postponed indefinitely. It passed the House — the first time in Colorado history — in April.