An Act imposing a gross receipts tax on retail sales of firearms and firearms ammunition in this State, supplementing Title 54 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. (1) There is imposed on each person making retail sales of firearms or firearms ammunition a tax at the rate of 2.5 percent of the gross receipts from retail sales of firearms in this State and a tax at the rate of 10 percent of the gross receipts from retail sales of firearms ammunition in this State.

(2) Gross receipts from the retail sales of firearms and firearms ammunition in this State shall not include receipts from retail sales of firearms or firearms ammunition that the seller delivers to a common carrier for delivery outside this State, places in the United States mail or parcel post directed to the purchaser outside this State, or delivers to the purchaser outside this State by means of the seller's own delivery vehicles.

b. Gross receipts from retail sales of firearms and firearms ammunition in this State shall not include receipts from retails sales of firearms and firearms ammunition to the United States of America or any of its agencies and instrumentalities, or to this State, or any of its agencies, instrumentalities, public authorities, public corporations, including a public corporation created pursuant to agreement or compact with another state, or political subdivisions.

c. As used in this section:

"Firearms" means weapons that expel a projectile with potentially lethal force via the action of an explosive or other form of combustion, which weapons are capable of being transported and fired by a person.

"Firearms ammunition" means self-contained cartridges or shotgun shells and their components sold for use in loading firearms ammunition, including, but not limited to, primers, bullets, shot, slugs, missiles or other projectiles, casings, shells and hulls, black powder, smokeless powder and other propellants, and other products incorporated in firearms cartridges and shells or used in muzzle loads, such as wads and sealants.

Other terms have the meaning given those terms pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).

d. The Director of the Division of Taxation in the Department of the Treasury shall collect and administer the tax imposed pursuant to this section. In carrying out the provisions of this section, the director shall have all of the powers and authority granted in P.L.1966, c.30 (C.54:32B-1 et seq.) The tax shall be reported and paid to the director on a monthly basis in a manner to be prescribed by the director.

e. The tax imposed pursuant to this section shall be governed by the provisions of the State Uniform Tax Procedure law, R.S.54:48-1 et seq.

f. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director may adopt immediately upon filing with the Office of Administrative Law such regulations as the director deems necessary to implement the provisions of this section, which regulations shall be effective for a period not to exceed 360 days following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director in accordance with the requirements of P.L.1968, c. 410 (C.52:14B-1 et seq.).

2. This act shall take effect immediately and apply to gross receipts from sales made beginning on or after the first day of the first calendar quarter beginning at least 30 days after the date of enactment.

STATEMENT

This bill imposes on a person making retail sales of firearms or ammunition in this State: a 2.5 percent tax on gross receipts from retail sales of firearms, and a 10 percent tax on gross receipts from retail sales of firearms ammunition. Sales to agencies of federal, State, or local government are exempt from the taxes imposed by the bill.

The bill defines "firearms" as any weapons that expel a projectile with potentially lethal force via the action of an explosive or other form of combustion, which weapons are capable of being transported and fired by a person. "Firearms ammunition" is defined as self-contained cartridges or shotgun shells and their components sold for use in loading firearms ammunition, including, but not limited to, primers, bullets, shot, slugs, missiles or other projectiles, casings, shells and hulls, black powder, smokeless powder and other propellants, and other products incorporated in firearms cartridges and shells or used in muzzle loads, such as wads and sealants.

The bill takes effect upon enactment and applies to gross receipts from sales made beginning on or after the first day of the first calendar quarter beginning at least 30 days after the date of enactment.