Firearms Ammunition FAQs

The passage of House Bill 24-1349 and voter approval of Proposition KK in the November 2024 general election established the firearms & ammunition tax.

• Ammunition: Defined in Colorado Revised Statutes § 39-37-103 (1) to mean ammunition or cartridge cases, primers, bullets, or propellant powder designed for use in any firearm.  
• Firearm or gun: Defined in Colorado Revised Statutes § 39-37-103 (6) to mean a firearm as defined in Colorado Revised Statutes § 18-12-101 (1)(b.7) and any instrument or device described in Colorado Revised Statutes § 18-1-901 (3)(h) or 18-12-506 (2).
  • Colorado Revised Statutes § 18-12-101 (1)(b.7) defines “firearm” to mean any weapon, including a starter gun, that can, is designed to, or may readily be converted to expel a projectile by the action of an explosive; the frame or receiver of a firearm; or a firearm silencer. ”Firearm“ does not include an antique firearm, as defined in 18 U.S.C. sec. 921 (a)(16). In the case of a licensed collector, ”firearm“ means only curios and relics. “Firearm” includes a weapons parts kit that is designed to or may readily be completed, assembled, restored, or otherwise converted to expel a projectile by the action of an explosive. ”Firearm“ does not include a weapon, including a weapons parts kit, in which the frame or receiver of the firearm, as defined in Colorado Revised Statutes § 18-12-101 (1)(c.5), or the weapon, is destroyed.
  • Colorado Revised Statutes § 18-1-901 (3)(h) and 18-12-506 (2) define “firearm” to mean any handgun, automatic, revolver, pistol, rifle, shotgun, or other instrument or device capable or intended to be capable of discharging bullets, cartridges, or other explosive charges.
• Firearm precursor parts and gun precursor parts: Defined in Colorado Revised Statutes § 39-37-103 (7) to mean: 
  • An unfinished frame or receiver as defined in Colorado Revised Statutes § 18-12-101 (1)(l) (Any forging, casting, printing, extrusion, machined body, or similar article that has reached a stage in manufacture when it may readily be completed, assembled, or converted to be used as the frame or receiver of a functional firearm; or that is marketed or sold to the public to become or be used as the frame or receiver of a functional firearm once completed, assembled, or converted). 
  • A fire control component as defined in Colorado Revised Statutes § 18-12-101 (1)(c.3) (A component necessary for the firearm to initiate, complete, or continue the firing sequence, including any of the following: Hammer, bolt, bolt carrier, breechblock, cylinder, trigger mechanism, firing pin, striker, or slide rails. 
  • A device marketed or sold to the public that is designed or adapted to be inserted into, affixed into, or used in conjunction with a firearm if the device is reasonably designed or intended to be used to increase a firearm’s rate of fire, concealability, magazine capacity, or destructive capacity, or if the device is reasonably designed or intended to be used to increase a firearm’s stability and handling when the firearm is repeatedly fired. 
  • Any machine or device that is marketed or sold to the public that is reasonably designed or intended to be used to manufacture or produce a firearm.

The tax does not apply to separately stated charges for repair services.

The background check fee is not subject to the tax provided that it is separately stated from the price of the firearm. 

Sales to peace officers, active duty US military personnel, and law enforcement agencies are exempt from this tax.

The firearms and ammunition tax is 6.5% for all firearms, firearm precursor parts and ammunition; unless the sale is to a peace officer, active duty US military personnel, or a law enforcement agency, which are exempt from the tax.

• Vendors of ammunition, firearms, or firearm precursor parts that have a location in the state. A location in the state includes a vendor that maintains within this state, directly or indirectly or by a subsidiary, an office, distribution facility, salesroom, warehouse, storage place, or other similar place of business, including an employee who works from a home office with a Colorado address.
• Vendors of firearms, firearm precursor parts, or ammunition that do not have a location in Colorado and make retail sales into the state (online sales, catalog sales, etc.) must register when annual retail sales of these products exceed $20,000.  
  • Vendors that do not have a location in Colorado and whose sales of ammunition, firearms, and firearm precursor parts are $20,000 or less for the prior calendar year are not required to register until the 1st of the month 90 days after their retail sales of these products exceed $20,000 for the calendar year. For example, if the retail sales of firearms/ammo were $1,000 per day, starting January 1, 2025. This means the retail sales would be over $20,000 on January 21, 2025. The vendor has met the threshold for doing business in the state and is required to register and pay the tax as of May 1, 2025
     

Yes, vendors of ammunition, firearms, or firearm precursor parts that have a location in the state are required to register and pay the tax. 

Colorado Revised Statutes § 39-37-109(3) requires the firearms and ammunition excise tax return be filed monthly. Unlike the sales tax, the statute does not provide for less frequent filing by vendors with a location in Colorado and smaller tax liabilities. 

• Vendors that do not have a location in Colorado with annual retail sales of firearms, firearm precursor parts, and ammunition of more than $20,000 are required to register and pay the firearms and ammunition tax as described above (see Who must register for the firearms and ammunition tax?). 

• If you have a location in Colorado, you are required to register as a vendor, which includes a monthly filing requirement regardless of whether sales are made or not.  For a description of business locations requiring registration, see “Who must register for the firearms and ammunition tax?”.
• If you do not have a location in Colorado, you are not required to register unless your retail sales of ammunition, firearms, or firearm precursor parts in Colorado exceed $20,000 or  until your retail sales of ammunition, firearms, or firearm precursor parts in Colorado in the current year exceed $20,000; you will be required to register and pay the tax by the first of the month with the date 90 days after your retail sales exceed $20,000. 

No, wholesalers who never make retail sales are not required to register. Ammunition vendors are required to register as a vendor and file monthly returns to make retail sales of firearms, firearm precursor parts, or ammunition to consumers in this state.   

No, wholesalers who never make retail sales are not required to register. Firearms manufacturers are required to register as a vendor and file monthly returns to make retail sales of firearms, firearm precursor parts, or ammunition to consumers in this state.

Vendors can register with the Department of Revenue by submitting form CR 0100. Vendors will also be able to register on Revenue Online by March 2025. 
 

The firearms & ammunition tax is required to be filed and paid electronically. The returns are filed monthly and are due on the 20th of the month following taxable activity.  If the 20th falls on a weekend or state holiday, the return and payment are due the following business day. Payment by check, money order, or cash is subject to a penalty of the greater of $50 or 5% of the tax owed. A return is required to be filed even in periods that have no activity to report.