S. 1169: Freedom from Unfair Gun Taxes Act

This bill, called the Freedom from Unfair Gun Taxes Act, aims to restrict states from imposing excise taxes on firearms and ammunition sales. Here are the main points of the bill:

Prohibition of State Excise Taxes

The bill states that:

• No state or local government can levy or collect an excise tax on the sale of:
• Firearms
• Ammunition
• Parts or components of firearms or ammunition
• This prohibition applies specifically to sales that occur in or affect interstate or foreign commerce.

Implications of the Bill

The legislation is designed to create a uniform tax environment for firearms and ammunition sales across states. By preventing states from charging these specific taxes, it aims to potentially facilitate easier access to these goods and reduce the financial burden on manufacturers and dealers.

Relation to Existing Laws

The bill includes a provision indicating that it does not alter or affect the existing Pittman-Robertson Wildlife Restoration Act, which is a federal law related to funding for wildlife conservation through taxes on firearms and ammunition. This means that while the bill would restrict state taxes, it recognizes and maintains the federal tax structure established by the Pittman-Robertson Act.

Summary of Enforcement

If the bill is enacted, states would need to comply with these regulations, or they may face legal challenges based on the new federal prohibition. This could lead to significant changes in how states fund initiatives related to firearms and wildlife conservation.

Relevant Companies

• Ruger (RGR) - As a manufacturer of firearms, Ruger may see changes in the sales environment if states cannot levy additional taxes on their products, potentially impacting pricing and sales volumes.
• Vista Outdoor (VSTO) - This company produces ammunition and could also benefit from reduced taxation on their products, possibly leading to higher sales and market competitiveness.
• Scientific Games (SGMS) - While primarily focused on gaming and lottery services, under certain circumstances related to gun sales regulations, it could be involved in associated markets impacted by this bill.