A BILL to amend the Code of Virginia by adding in Title 58.1 a chapter numbered 6.3, consisting of sections numbered 58.1-663 through 58.1-666, relating to retail sales and use tax; firearm and ammunition tax.
HB919 creates a new chapter in Title 58.1 imposing an excise tax on firearms and ammunition manufacturers. Beginning July 1, 2027, the tax would be set at 11 percent of gross receipts from the sale and distribution in Virginia of firearms or ammunition. The bill defines covered firearms to include assault firearms, firearms, and handguns, while excluding antique firearms and curios or relics. It also defines firearms and ammunition manufacturers by reference to federal licensing requirements.
The bill exempts sales to federal, state, and local law-enforcement agencies from the tax. It directs the Department of Taxation to administer the tax under the general retail sales and use tax collection framework, and it sends the revenue to the general fund. The bill states legislative intent that the proceeds be used for gun violence prevention efforts and community safety. The effective date is July 1, 2027.
HB919 would add a new state excise tax regime specifically targeting firearms and ammunition manufacturers, creating a new chapter in Virginia’s tax code and expanding the Department of Taxation’s responsibilities to collect and administer the levy. It would not directly tax retail purchasers, but would impose an 11 percent tax on gross receipts from covered sales and distributions in the Commonwealth, with an exemption for law-enforcement purchases. The bill would also establish a policy link between the tax revenue and future spending on gun violence prevention and community safety, although the money is deposited into the general fund.
The available context suggests the bill was not advanced to final passage and was continued under House Rule 22 to 2027 in the House Finance Committee, indicating it remained under consideration rather than moving forward. Because there are no recorded committee transcripts or votes in the provided materials, there is no direct evidence of floor debate or formal vote sentiment. The bill’s subject matter and structure suggest it was introduced as a gun-violence-prevention measure, but the lack of recorded discussion means the overall sentiment can only be characterized as unresolved and procedurally deferred.
The main point of contention is likely the policy choice to impose a substantial 11 percent excise tax on firearms and ammunition manufacturers, which supporters would view as a funding mechanism for gun violence prevention and community safety, while opponents may see it as a targeted burden on the firearms industry and lawful commerce. Another likely issue is the scope of the tax, including whether it should apply to manufacturers’ gross receipts rather than retail sales, and whether the exemption for law-enforcement purchases is sufficient. The bill’s continuation in committee suggests these issues may not have been settled.