New Excise Tax on Guns and Ammo in Colorado

New Excise Tax on Guns and Ammo in Colorado

Hey all, we here at True Shot Academy are going to go over the new excise tax on guns and ammo in Colorado. This upcoming legislative change is going to have a significant economical impact on the prices of guns, firearm components, and ammunition for Colorado shooters. We are going to delve into the many ins and outs of this upcoming excise tax and more information surrounding Proposition KK. Without further ado, let’s talk about the new excise tax on guns and ammo in Colorado.

Aren’t Guns and Ammo Already Taxed?

Currently, there is an existing excise tax on both guns and ammo which has been in place since 1919. As of now, handguns currently have an existing 10% excise tax imposed by the federal government. All other firearms such as rifles and shotguns in addition to ammunition are subject to an 11% federal excise tax. With Proposition KK passing, this additional excise tax on these goods will certainly once the measure takes effect.

What Measure Are We Talking About?

The measure which implement’s this new excise tax was introduced in the form of Proposition KK, or the Firearms and Ammunition Tax. This measure was initially introduced on February 28, 2024 as House Bill 24-1349. On April 20, 2024, the measure passed in Colorado’s House by a 44-18 vote. The measure found its way into the Senate on May 8, 2024 and was amended and ultimately passed by a vote of 18-15. After passing both the House and Senate, the measure was placed onto ballots for the 2024 election season. Purchase Ammo

When Did This Happen?

Proposition KK was one of many measures on ballots in Colorado this past election cycle. The vote was called in the early morning following election night on November 6, 2024 at 2:18am. As far as votes went, Proposition KK received about 54.4% “yes” votes with about 45.5 votes against the measure.

When Does Proposition KK Go into Effect?

The new excise tax outlined by Proposition KK will go into effect on April 1, 2025. This means that Coloradans essentially have until April of next year to purchase guns, firearm parts, and ammo before paying this new excise tax.

What Does This Mean?

Put plainly, Colorado shooters are going to be paying more for guns, firearm components, and ammunition in 2025. This is due to the fact that Proposition KK is going to is going to impose a 6.5% excise tax on the “retail sale of any firearm, firearm precursor part or ammunition in Colorado.” This tax is going to be imposed on firearm dealers and manufacturers in the state, effectively increasing the prices shooters will need to pay with new purchases. The operative term here is “new purchases” as existing owners of guns and ammo will not need to pay a tax on their current possessions. This new excise tax will only apply to new purchases of these goods following its implementation.

How Will this Cost Manifest?

Page 4 of the legislative text of Proposition KK outlines some examples of how this new excise tax will manifest when applied to certain types of goods. Examples given in the text reference potential handgun, long gun, and ammunition costs when factoring in this upcoming excise tax.

• Handgun: The legislative text uses the example of a $550 handgun for this purpose. When the 6.5% excise tax is applied to this price, we have a tax value of $35.75. In total, this equates to $585.75 before standard taxes/fees paid by customers.
• Long Gun: The legislative text uses the example of a $930 long gun for this purpose. When the 6.5% excise tax is applied to this price, we have a tax value of $60.45. In total, this equates to $990.45 before standard taxes/fees paid by customers.
• Ammunition: The legislative text uses the example of a $20 box of ammunition for this purpose. When the 6.5% excise tax is applied this price, we have a tax value of $1.30. In total, this equates to $21.30 before standard taxes/fees paid by customers.

Can This Tax Be Challenged?

As of now, this tax cannot be challenged or changed. Legal action cannot be taken regarding a tax until it is actually implemented and it has been paid. This is to say that legal challenges cannot come until after the 6.5% excise tax goes into effect on April 1, 2025. Once someone has paid this tax, those seeking to challenge this tax can demonstrate harm and begin preparing plaintiffs. As with the recent example of California’s 11% excise tax on similar goods brought on by Assembly Bill 28, legal challenges must wait until the tax has gone into effect. If we look at the California example, there were multiple gun rights advocacy groups which were essentially waiting for the exact earliest opportunity to begin their legal challenges. This phenomenon will likely happen again in regards to this Colorado excise tax. Purchase Ammo

What Should We Do?

As with all legislative actions and policy changes which impact guns and ammo, we should stay vigilant and keep an eye out for developments. One should also keep an eye on what organizations such as the National Association for Gun Rights, Firearms Policy Coalition, and Gun Owners of America say about this issue. These organizations and others are often at the forefront of advocacy efforts, information campaigns, and legal challenges regarding legislation dealing with guns and ammo. Of course, shooters in Colorado should try to stock up on ammo while the getting is good as the tax is not taking effect for another few months. This is not a call for panic buying by any means, but simply a reminder that things are going to become much more expensive for shooters come April, 2025.

Conclusion

All in all, shooters in Colorado and the United States as a whole should be aware of this upcoming excise tax. While California’s excise tax came out of the State Assembly, Colorado’s is unique in the sense that it was introduced by the legislative bodies and put on the ballot to be voted on by citizens. This is to say that Colorado is the first state in the union to enact an excise tax on guns and ammo by means of a ballot measure. By April, 2025, there will be two states in the country which have implemented excise taxes on these types of goods. While this number is far from an astronomical number of states, it is still concerning to gun owners that these measures are implemented at all and that their concept is spreading. One should be vigilant, vote, and become involved with advocacy to fight existing legislation and prevent its spread. As always, we here at True Shot Ammo have you covered with our large inventory of ammo for sale. Whether you are looking for 9mm, 5.56, 12 gauge, or .22 Long Rifle, we can support a wide range of firearms. Additionally, regardless of whether you want to purchase individual ammo quantities or buy bulk ammo, we have you covered. As always, happy shooting.