Firearms & Ammunition Excise Tax General Information leaflet
What is the Firearms & Ammunition Excise Tax?
Created by Proposition KK, which was approved on ballot in November 2024. 6.5% excise tax on firearms, firearm precursor parts, and ammunition. In effect April 1st, 2025.
Who needs to register, file, and pay, and when?
Retail vendors of firearms, firearm precursor parts, and ammunition doing business in Colorado, including manufacturers who make retail sales. Vendors must file EVERY month, regardless of sales amounts. Firearms & Ammunition Excise Tax Returns are due by the 20th day of the following month. Returns must be filed and paid via Revenue Online.
Which sales are exempt?
Peace officers, active-duty members of the US Armed Forces, and law enforcement agencies. Exempt sales are documented on DR 7612 Firearms & Ammunition Exemption Form.
- Who is considered to be “doing business in Colorado?”
Vendors are considered to be doing business in Colorado if they meet any of the following criteria: Maintain a place of business in Colorado. For example, an office, distribution facility, salesroom, warehouse, storage place, or other similar place of business; OR - Employ a resident of Colorado who works from a home office in the state; OR
- Made retail sales of firearms, firearm precursor parts, or ammunition in Colorado totaling. MORE THAN $20,000 in the previous calendar year.
If NONE of these conditions are met, the vendor is NOT required to register unless the vendor makes more than $20,000 in qualifying retail sales during the current calendar year.
What happens when an out-of-state retailer reaches the threshold?
When an out-of-state vendor reaches the $20,000 retail sales threshold, they will have 90 days to register. The vendor must then pay the excise tax on any taxable sale made on and after the 1st of the month following registration.
Which sales count toward the out-of-state vendor threshold?
All retail sales in Colorado, including any exempt sales, of firearms, firearm precursor parts, and ammunition.