HB 1386
In CommitteeHouse
Firearms tax
Imposing a new tax on firearms, firearm parts, and ammunition.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill creates a new 11% tax on the retail sale of firearms, firearm parts, and ammunition in Washington, with exemptions for government and tribal law enforcement purchases. Revenue from the tax is directed toward suicide prevention, domestic violence prevention, and victim services. It also strengthens rules for holding business leaders personally liable for unpaid trust fund taxes, including this new tax.
- Imposes a new 11% sales and use tax on retail sales of firearms, firearm parts, and ammunition in Washington State.
- Exempts sales to state, local, and tribal law enforcement agencies for official use.
- Requires that all revenue from the tax during the 2025–2027 fiscal biennium be used for gun violence prevention programs, including suicide prevention, domestic violence prevention, and victim services.
- Amends existing law to expand personal liability for unpaid trust fund taxes (including the new firearms tax) from limited liability businesses to certain responsible individuals, such as CEOs and CFOs.
- Adds a new chapter to Title 82 RCW to administer the tax, with authority given to the Department of Revenue to adopt rules and enforce collection.
Who is affected
- Firearm and ammunition sellers and buyers — Individuals and businesses that sell or purchase firearms, firearm parts, or ammunition in Washington will pay an additional 11% tax on those items, unless the buyer is a government or tribal law enforcement agency.
- Gun violence prevention and victim service programs — State and local agencies that provide suicide prevention, domestic violence prevention, and victim services may receive increased funding from tax revenues to expand or maintain programs.
- Business owners and managers of limited liability entities — Leaders of limited liability businesses (e.g., LLCs, partnerships) who are responsible for paying taxes may face personal liability if their business fails to remit collected taxes, including the new firearms tax.
- Law enforcement and tribal law enforcement agencies — Law enforcement and tribal law enforcement agencies are exempt from the tax when purchasing firearms, parts, or ammunition for official use.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The tax is dedicated to funding suicide prevention, domestic violence prevention, and victim services—evidence-based interventions shown to reduce firearm-related deaths and improve community safety, especially for vulnerable populations including women, youth, and survivors of intimate partner violence.
Public SafetyPeopleRef: Sec. 3 and Sec. 2(3)Exempting law enforcement and tribal agencies from the tax ensures public safety agencies can maintain readiness and training without added budgetary strain, supporting consistent response capacity across jurisdictions.
Public SafetyPeopleRef: Sec. 2(3)Strengthening trust fund tax enforcement helps ensure fair competition by discouraging tax evasion among small businesses, protecting compliant employers and workers from unfair cost advantages held by noncompliant firms.
Business & EmploymentPeopleRef: Sec. 5(3)(a) and (b)By directing revenue to suicide prevention and trauma-informed victim services, the bill may reduce long-term public health costs associated with firearm-related injuries and deaths—including emergency care, mental health treatment, and long-term disability support.
HealthcarePeopleRef: Sec. 2(1)Funding for suicide and violence prevention programs may support school-based mental health services, threat assessment teams, and restorative justice initiatives that improve student safety and academic outcomes.
EducationPeopleRef: Sec. 3
Potential Concerns (5)
The 11% tax on firearms, parts, and ammunition increases the upfront cost for private firearm purchasers, disproportionately affecting lower- and middle-income individuals who rely on firearms for self-defense, recreation, or collecting — especially in rural areas where alternatives may be limited.
FinancialIndustryRef: Sec. 2(1)The expansion of personal liability for trust fund taxes (including this new firearms tax) to CEOs and CFOs of LLCs and partnerships creates significant legal and financial risk for small business owners and managers, potentially deterring entrepreneurship and exposing individuals to personal asset seizure even if they lacked actual knowledge of tax noncompliance.
Business & EmploymentIndustryRef: Sec. 2(3) and Sec. 5(3)(a)The new tax is layered on top of existing sales and use taxes, potentially distorting local revenue sharing (since local jurisdictions receive a portion of state sales tax revenue), and may reduce local government flexibility in budgeting if firearm-related sales decline significantly.
Local GovernmentLean industryRef: Sec. 2(2)The expansion of personal liability for trust fund taxes—including the new firearms tax—applies regardless of fault or awareness to CEOs/CFOs, potentially infringing on due process rights by imposing strict liability for actions or inactions of subordinates or systemic failures beyond the individual’s control.
Rights & LibertiesIndustryRef: Sec. 5(3)(a)While not directly targeted, increased costs for firearms and ammunition may indirectly affect rural homeowners and renters who rely on firearms for pest control, protection of livestock, or personal safety in areas with limited law enforcement presence.
HousingLean industryRef: Sec. 2(1)
Who Is Most Affected
Individuals purchasing firearms for self-defense, hunting, or sport will face a 11% price increase; lower- and middle-income buyers—especially in rural areas—will be most affected, potentially reducing access to firearms for those who rely on them for protection in underserved communities.
Small business owners operating gun shops, ammo dealers, and sporting goods stores may see reduced sales volume and increased compliance costs; those in LLC/partnership structures face personal liability exposure, potentially deterring new business formation or increasing insurance premiums.
State and local agencies providing domestic violence shelters, crisis hotlines, suicide prevention outreach, and victim advocacy will gain dedicated, potentially growing funding—though success depends on appropriation discipline and program capacity to absorb new resources.
CEOs and CFOs of small businesses (e.g., gun shops, ammo manufacturers) face heightened personal financial risk if tax collection fails—even if they were unaware—potentially discouraging leadership roles in small businesses or increasing legal/insurance costs.
Law enforcement and tribal agencies avoid the tax on official purchases, preserving budget flexibility for equipment and training; however, they may face indirect pressure if community trust declines due to perceived taxation of law enforcement tools.