Why it Matters: Excise taxes imposed on firearms and ammunition at the state level place an overly burdensome expenditure on the backs of sportsmen and women. Firearms and ammunition are already subject to federal excise taxes at the manufacturer-level through the widely celebrated Pittman-Robertson Act which funds a variety of hunting, shooting, and wildlife conservation-related activities. Imposing a state-level excise tax could carry negative impacts on participation in hunting and recreational shooting in the Cornhusker State.
Highlights:
- Introduced during a special session called for by Governors Sportsmen’s Caucus Member Governor Jim Pillen to evaluate tax priorities, Nebraska Legislative Bill 65 (LB 65) would impose a 5% excise tax on all ammunition sales in the state.
- Though unlikely to pass during the special session following its recent hearing, LB 65 joins several other bills from across the country in a growing trend of increasing taxes on firearms and ammunition.
- The Congressional Sportsmen’s Foundation (CSF) will continue to oppose legislation, like LB 65, that imposes these state-level excise taxes on firearms and ammunition.
Nebraska started their special session on July 25 with the legislative focus being placed on taxation. Introduced during the special session was Legislative Bill 65, which would impose a new 5% excise tax on all ammunition sales in the state. The Congressional Sportsmen’s Foundation has been active in alerting in-state partners about the negative impacts that a state-level imposed excise tax would have on recreational shooters and sportsmen and women.
LB 65, if passed, would impose a 5% excise tax on all ammunition sales in Nebraska, and divert 50% of the proceeds to the Property Tax Credit Fund, 35% to the Wildlife Management fund, and the remaining to the Post-Traumatic Stress Disorder Grant Program Fund. This effort, and others like it, are different than existing federal laws like the widely celebrated Pittman-Robertson Act through which firearms and ammunition are federally taxed at the manufacturer-level. The federal excise tax serves as a primary part of the “user pays – public benefits” American System of Conservation Funding (ASCF), which is used for the funding of wildlife research, private and public land habitat management, hunter education, shooting range development, land acquisition, and hunting access, all at the state level.
Imposing a 5% state excise tax on ammunition could have negative impacts on conservation funding, participation in hunting and recreational shooting, and the Nebraska Game and Parks Commission’s (NGPC) ability to manage wildlife that benefits all Nebraskans. In 2023, Nebraska received over $19 million in federal funding for wildlife restoration and hunter education programs. NGPC relies on the ASCF to carry out their conservation efforts in Nebraska. By burdening sportsmen and women with even more costs, LB 65, if passed, could result in a reduction of ammunition sales and overall demand for ammunition, which could ultimately decrease the amount of conservation dollars the NGPC and all other state fish and wildlife agencies would receive through the Pittman-Robertson Act.
While the bill is not expected to receive additional attention during this special session, CSF remains prepared to engage and protect our sporting-conservation community against efforts such as this.
