Bill > HB387

This bill establishes a new 11% firearm excise tax on gross receipts from firearm sales in Maryland, applying to large retailers starting July 1, 2027, and to other federally licensed firearms dealers starting July 1, 2028. The tax will not apply to sales to law enforcement agencies, military, law enforcement officers, retired law enforcement officers, or for competitive shooting. For out-of-state dealers, the tax only applies if they sell over $100,000 in firearms to Maryland residents or complete 200 or more separate transactions in the state. The revenue from this tax will be equally distributed among six specific funds and programs, including the Coordinated Community Supports Partnership Fund, Maryland Trauma Physician Services Fund, R Adams Cowley Shock Trauma Center, Maryland Violence Intervention and Prevention Program Fund, Survivors of Homicide Victims Grant Program, and the Center for Firearm Violence Prevention and Intervention. Firearms dealers will be required to file monthly tax returns, maintain detailed records, and can face penalties including fines up to $5,000 and potential imprisonment for willful non-compliance or filing false returns. The bill explicitly states that this new revenue is intended to supplement, not replace, existing funding sources for these programs.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0387?ys=2025RS