Chase McCleary / Rocky Mountain PBS Handgun sales will fall under the 6.5% excise tax imposed by Proposition KK. Colorado voters approved Proposition KK on Election Day, adding a 6.5% excise tax on gun and ammunition sales.
Colorado is not the first state to impose such a tax, but it is the first one to do so via a citizen’s vote.
California, the only other state with an excise tax on gun sales, passed a similar 11% excise tax through Assembly Bill 28 which Governor Gavin Newsom signed into law. Because of Colorado’s unique Taxpayer Bill of Rights ( TABOR ), certain tax increases like those included in Proposition KK require voter approval.
Colorado Majority Leader Monica Duran, a survivor of domestic violence who sponsored the House Bill that referred the measure to the ballot, said in a statement from Violence Free Colorado that she sympathized with victims of violence, and that, “Colorado is taking a stand for those who need it most — veterans, young people, and survivors of violence.”
“This funding will provide life-changing resources to help people heal and rebuild their lives just like me.”
There is presently a federal tax on firearms and ammunitions which charges between 10% and 11% depending on the gun size and type.
Firearms classified as pistols and revolvers are taxed at 10%, while firearms other than pistols and revolvers (e.g., rifles, machine guns, shotguns, etc.) and shells and cartridges are taxed at 11%.
Prop KK, known as the Firearms and Ammunition Tax will use funds raised through the 6.5% excise tax to support an array of government and nonprofit organizations focused on crime victims services, mental health services for veterans and youth and school safety programs, among others.
The tax will be imposed on firearm dealers and manufacturers from the “retail sale of any firearm, firearm precursor part or ammunition in Colorado.”The 6.5% excise tax will be placed on top of the 10%–11% federal excise tax, as is also the case in California. Prop KK is expected to raise $39 million in the first full year and will be allocated accordingly: Crime Victim Services (e.g., grants to local […]
Colorado becomes first state to approve excise tax on guns and ammunition via ballot measure
