Senate subcommittee backs substitute for bill imposing 11% excise on firearms manufacturers
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Summary
A Senate subcommittee recommended reporting SB 763 in substitute form, which creates an 11% excise tax on firearms and ammunition manufacturers' gross receipts to fund gun-violence prevention; a committee substitute delays the effective date to July 1, 2027 and redirects proceeds to the general fund for prevention uses.
Senator Williams Graves introduced SB 763 as a revenue-and-public-safety measure to generate a sustained funding stream for violence-prevention programs. "SB 7 63 establishes an 11% excise tax on firearms and ammunition manufacturers applied to gross receipts," he said, adding that the tax is imposed at the manufacturer level and exempts sales to federal, state and local law enforcement agencies.
The sponsor told the subcommittee the measure is designed to ensure costs associated with gun-violence prevention are "responsibly and sustainably funded without drawing from the general fund or placing additional strain on local governments." The bill directs proceeds to programs meant to support evidence-based intervention and community safety initiatives.
Staff presented a committee substitute that delays the bill's effective date to July 1, 2027, to align with Department of Taxation information system schedules, and directs proceeds to the general fund for uses intended for gun-violence prevention and community safety rather than a dedicated Virginia Gun Violence Intervention and Prevention Fund. The sponsor said he accepted the substitute.
The chair opened for public comment; none was offered. The subcommittee voted by voice to recommend reporting the bill in substitute form. The recommendation sends the substitute to the full committee; no floor vote or final enactment occurred in this session.
Next steps: SB 763 will proceed to the full committee in reported substitute form.