Proposed Bill Blocks State Excise Taxes on Guns & Ammo from Interstate Sellers

A new proposal, the 'Freedom from Unfair Gun Taxes Act,' aims to stop states and local governments from adding their own excise taxes onto firearms, ammunition, and related components. This ban applies specifically when these items are sold by manufacturers or dealers operating across state lines or internationally. Importantly, the bill makes clear it wouldn't interfere with the existing federal Pittman-Robertson Wildlife Restoration Act tax.

What's Changing on the Tax Front?

At its core, Section 2 of this bill forbids states, counties, or cities from levying excise taxes – think of these as targeted sales taxes – on guns, ammo, or their parts if the seller is engaged in interstate or foreign commerce. If a manufacturer in one state sells to a dealer in another, or a dealer sells across state lines, this bill says the state government can't add its own special excise tax on that sale. This is aimed squarely at state and local level taxes, not the federal ones already in place.

State Coffers vs. Seller Costs

So, what does this mean in practice? For firearm and ammunition manufacturers and dealers operating across state lines, it could mean a reduction in the taxes they face, potentially lowering their cost of doing business in states that currently have such excise taxes. The flip side is the potential impact on state budgets. Some states use excise taxes on specific goods to generate revenue, sometimes earmarking it for particular programs. This bill could limit that option for firearms and ammo, potentially creating a revenue gap that states would need to address elsewhere. While the bill doesn't detail the specific programs funded by such state taxes, limiting this revenue stream is a key potential outcome.

The Fine Print: Pittman-Robertson Stays Put

The bill explicitly states it doesn't change the Pittman-Robertson Act. This is a long-standing federal law that imposes an excise tax on firearms and ammunition sales, with the revenue specifically directed towards wildlife conservation and hunter education programs. By carving this out, the proposed 'Freedom from Unfair Gun Taxes Act' signals its focus is solely on preventing additional state and local excise taxes, leaving the established federal conservation funding mechanism untouched.