Firearms & Ammunition Tax Frequently Asked Questions
See the definition of ammunition, firearm/gun, and firearm precursor parts/gun precursor parts on the definitions page, tax.colorado.gov/firearms-ammunition-definitions.
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.
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 member of the US Armed Forces, or law enforcement agencies, which are exempt from the tax. See form DR 7612 for instructions about documenting exempt sales.
No, the tax is not reduced by any trade-in value.
Yes, the tax rate is 6.5% for all net taxable sales, regardless of whether the item sold is new or used.
Colorado Revised Statutes § 39-37-109(3) requires the firearms and ammunition excise tax return to 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.
No, wholesalers who never make retail sales are not required to register. Ammunition vendors and firearms manufacturers that make retail sales of firearms, firearm precursor parts, or ammunition to consumers in this state, are required to register and file monthly returns.
The vendor that made the sale owes the excise tax; in this case, it is the out-of-state vendor.
No, a Colorado location is established when, as stated in C.R.S. 39-37-103(3)(a), a person who 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 the employment of a resident of this state who works from a home office in this state.