Why It Matters: Maryland House Bill 197 (HB 197) and its cross-file, Senate Bill 118 (SB 118), seek to impose an additional 11% excise tax on firearms dealers for the sale of firearms, accessories, and ammunition to fund gun violence prevention and intervention programs. Legislation like this discriminates against law-abiding sportsmen and women in the form of a tax (“sin tax”). Firearms and ammunition dealers will likely have to pass the additional cost on to consumers, which is likely to create a decline in sales and, in turn, a decline in conservation funding.
Highlights:
- HB 197 and SB 118 seek to create an 11% excise tax on firearms and ammunition dealers to fund gun violence prevention and intervention programs that will likely be passed down to the consumers
- Legislation like HB 197 and SB 118 will likely negatively impact conservation funding as the sale of firearms and ammunition will likely decrease.
- HB 197 is scheduled for a hearing in the House Ways and Means Committee on March 5, 2026, where CSF will be submitting testimony. This legislation is particularly likely to create a greater hardship on lower-income and minority households, according to Maryland’s Department of Legislative Services Racial Equity Impact Note.
Many legislatures are seeing a renewed effort to pass “sin tax” legislation following California’s passage of a similar provision in Assembly Bill 28 (2023) This legislation has been attempted in different variations in previous years. However, this year, the bill specifies that 26% of the funds would be allocated to the Maryland Violence Intervention and Prevention Fund program, 26% to the Center for Firearm Violence Prevention and Intervention within the Maryland Department of Health, 20% to the Coordinated Community Supports Partnership, 20% to the Survivors of Homicide Victims Grant Program, 4% to the Maryland Trauma Physician Services Fund, and 4% to the R Adams Cowley Shock Trauma Center and the University of Maryland Medical System.
In 1937, the Pittman-Robertson Act redirected previously existing manufacturer-level excise taxes on firearms and ammunition to a dedicated fund to be used specifically for wildlife conservation purposes. Once collected, the taxes are deposited into the Wildlife Restoration Account, which is administered by the United States Fish and Wildlife Service (USFWS). Under the Pittman-Robertson Act and per the Firearms and Ammunition Excise Tax, firearms and ammunition are subject to a 10-11% excise tax. By subjecting federally licensed firearms dealers and subsequently purchasers of firearms to an additional 11% tax, HB 197 will likely negatively impact conservation funding, ultimately making it more challenging for the Maryland Department of Natural Resources to effectively carry out its mission. Arguably, the parties most significantly harmed by this bill will be the recreational shooters and hunters who will be subjected to additional taxes, but all citizens will be negatively impacted by the loss of conservation dollars.
Not only would this legislation likely negatively impact conservation funding, but its impacts will be felt most significantly by those in lower-income households. According to the Maryland Department of Legislative Services Racial Equity Impact Note, “Evidence from government and academic sources suggests that the excise tax imposed by the bill would be passed on to consumers in whole or in part. As such, the tax may disproportionately affect lower-income households and, by extension, communities of color to the extent the tax is passed on to consumers. Any equity benefits realized from programs receiving funding from the tax are indirect and may not offset the more immediate effects of the tax…”
The Congressional Sportsmen’s Foundation (CSF) continues to work with the Maryland Legislative Sportsmen’s Caucus to discourage the passage of HB 197 and SB 118, which discriminate against sportsmen and women and will likely negatively impact conservation funding in the “Old Line State”.
