Bill > H0418

This bill establishes an 11% excise tax on the retail sale of firearms, firearm precursor parts, and ammunition in Vermont. The tax applies to sales by licensed firearm dealers and ammunition vendors, with dealers required to collect the tax during the background check process. Sellers can retain 10% of the collected tax as a processing fee. The bill defines key terms like "firearm" and "ammunition" by referencing existing federal and state legal definitions. Licensed firearm dealers and ammunition vendors must file quarterly tax returns and maintain records of taxable transactions for at least three years. The revenue generated from this tax will be deposited into the Domestic and Sexual Violence Special Fund, which supports grants to the Vermont Network against Domestic and Sexual Violence. The tax is separate from existing sales and use taxes and will not apply to certain exempt transfers, such as those between immediate family members or to law enforcement agencies. The bill is set to take effect on July 1, 2026, giving businesses time to prepare for the new tax requirement.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/H.418