Bill > HB2558

This bill introduces a new state tax on firearms and ammunition in Virginia, imposing a $5 tax on each firearm sold and a one-cent tax on each round of ammunition sold by firearms sellers. The bill defines key terms such as "firearm" (including handguns, shotguns, rifles, and other weapons that can expel projectiles), "firearm seller" (which includes dealers, firearms show sellers, and any person selling firearms in the state), and provides specific exemptions for sales to government agencies and law enforcement officers. The revenue generated from these taxes will be split equally: 50% will be distributed to local jurisdictions proportionally for public school safety initiatives and gun violence prevention, and the other 50% will be deposited into the Virginia Gun Violence Intervention and Prevention Fund. The taxes will be collected by the Tax Commissioner using the same methods as retail sales tax, and the bill explicitly states that the collected revenues can only be used to enhance public school safety and prevent gun violence. The new tax provisions will become effective on July 1, 2026, giving businesses and government agencies time to prepare for the implementation of these new taxes.