02/25/2025

Senate Bill 59

Lead Sponsors: Senator Al Cutrona, and Senator Tim Schaffer

Status: First hearing in Senate Ways and Means (February 11, 2025)

Description: The bill exempts the sale of certain personal firearms and ammunition from the sales and use tax. The exemption applies to any non-shotgun firearm that is 50 caliber or smaller and any shotgun that is 10 gauge or smaller. Ammo for exempt weapons is also exempt.
 
LSC has not completed its fiscal analysis for SB 59 yet, but the fiscal analysis for HB 189 of the 135th General Assembly estimated a loss to the state GRF of between $22.7 million and $37.9 million per year and a loss to counties and transit authorities of between $5.9 million and $9.8 million per year.
 
The bill also creates a refundable tax credit for manufacturers of firearms and ammunition that build new or expanded facilities, with a cap of $10 million per year that can be granted under the credit. If the full allotment were awarded, the Local Government Fund would be reduced by $170,000 each year.

CCAO Position: CCAO opposes sales tax exemptions.