EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0784*
SENATE BILL 784
Q7, E4, F1 4lr1076
CF 4lr1075
By: Senators Elfreth, Augustine, Beidle, Ferguson, Gile, Guzzone, Hester,
Hettleman, Jackson, Kelly, King, Kramer, Smith, Sydnor, and
Waldstreicher
Introduced and read first time: February 1, 2024
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Comprehensive Community Safety Funding Act 2
FOR the purpose of imposing an excise tax on certain gross receipts of certain firearms 3
dealers derived from the sales of firearms, firearm accessories, and ammunition in 4
the State; and generally relating to a tax on gross receipts derived from firearms, 5
firearm accessories, and ammunition. 6
BY repealing and reenacting, without amendments, 7
Article – Health – General 8
Section 19–130(b)(1) 9
Annotated Code of Maryland 10
(2023 Replacement Volume) 11
BY repealing and reenacting, with amendments, 12
Article – Health – General 13
Section 19–130(c) 14
Annotated Code of Maryland 15
(2023 Replacement Volume) 16
BY repealing and reenacting, without amendments, 17
Article – Public Safety 18
Section 4–902(a), 5–101(a) and (h), and 5–133.1(a) 19
Annotated Code of Maryland 20
(2022 Replacement Volume and 2023 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Public Safety 23
Section 4–902(e)(1) 24
Annotated Code of Maryland 25 2 SENATE BILL 784
(2022 Replacement Volume and 2023 Supplement) 1
BY repealing and reenacting, without amendments, 2
Article – Tax – General 3
Section 1–101(a) and 13–508(b) 4
Annotated Code of Maryland 5
(2022 Replacement Volume and 2023 Supplement) 6
BY adding to 7
Article – Tax – General 8
Section 1–101(h–1); 2–4B–01 and 2–4B–02 to be under the new subtitle “Subtitle 4B. 9
Firearm, Firearm Accessory, and Ammunition Excise Tax Revenue 10
Distribution”; 7.7–101 through 7.7–301 to be under the new title “Title 7.7. 11
Firearm, Firearm Accessory, and Am munition Excise Tax”; and 12
13–201(3)(xviii), 13–825(j), and 13–1001(h) 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2023 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Tax – General 17
Section 2–102(a), 13–201(3)(xvi) and (xvii), 13–508(a) and (c), 13–509, and 13–1002 18
Annotated Code of Maryland 19
(2022 Replacement Volume and 2023 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Health – General 23
19–130. 24
(b) (1) There is a Maryland Trauma Physician Services Fund. 25
(c) The Fund consists of [motor]: 26
(1) MOTOR vehicle registration surcharges paid into the Fund in 27
accordance with § 13–954(b)(2) of the Transportation Article; AND 28
(2) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–4B–02 OF THE 29
TAX – GENERAL ARTICLE. 30
Article – Public Safety 31
4–902. 32
(a) There is a Maryland Violence Intervention and Prevention Program Fund. 33 SENATE BILL 784 3
(e) (1) The Fund consists of: 1
(i) money appropriated in the State budget to the Fund; 2
(ii) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–4B–02 OF 3
THE TAX – GENERAL ARTICLE; 4
(III) investment earnings of the Fund; and 5
[(iii)] (IV) money from any other source accepted for the benefit of 6
the Fund. 7
5–101. 8
(a) In this subtitle the following words have the meanings indicated. 9
(h) (1) “Firearm” means: 10
(i) a weapon that expels, is designed to expel, or may readily be 11
converted to expel a projectile by the action of an explosive; 12
(ii) the frame or receiver of such a weapon; or 13
(iii) an unfinished frame or receiver, as defined in § 5–701 of this title. 14
(2) “Firearm” includes a starter gun. 15
5–133.1. 16
(a) In this section, “ammunition” means a cartridge, shell, or any other device 17
containing explosive or incendiary material designed and intended for use in a firearm. 18
Article – Tax – General 19
1–101. 20
(a) In this article the following words have the meanings indicated. 21
(H–1) “FIREARM, FIREARM ACCESSORY , AND AMMUNITION EXCIS E TAX” 22
MEANS THE TAX IMPOSE D UNDER TITLE 7.7 OF THIS ARTICLE. 23
2–102. 24
(a) In addition to the duties set forth elsewhere in this article and in other articles 25
of the Code, the Comptroller shall administer the laws that relate to: 26 4 SENATE BILL 784
(1) the admissions and amusement tax; 1
(2) the boxing and wrestling tax; 2
(3) the digital advertising gross revenues tax; 3
(4) THE FIREARM , FIREARM ACCESSORY , AND AMMUNITION EXCIS E 4
TAX; 5
(5) the income tax; 6
[(5)] (6) the Maryland estate tax; 7
[(6)] (7) the Maryland generation–skipping transfer tax; 8
[(7)] (8) the motor carrier tax; 9
[(8)] (9) the motor fuel tax; 10
[(9)] (10) the sales and use tax; and 11
[(10)] (11) the savings and loan association franchise tax. 12
SUBTITLE 4B. FIREARM, FIREARM ACCESSORY, AND AMMUNITION EXCISE TAX 13
REVENUE DISTRIBUTION. 14
2–4B–01. 15
FROM THE FIREARM , FIREARM ACCESSORY , AND AMMUNITION EXCIS E TAX 16
REVENUE, THE COMPTROLLER SHALL DIS TRIBUTE THE AMOUNT N ECESSARY TO 17
ADMINISTER THE FIREA RM, FIREARM ACCESSORY , AND AMMUNITION EXCIS E TAX 18
LAWS TO AN ADMINISTR ATIVE COST ACCOUNT. 19
2–4B–02. 20
(A) AFTER MAKING THE DIST RIBUTION REQUIRED UN DER § 2–4B–01 OF 21
THIS SUBTITLE, THE COMPTROLLER SHALL DIS TRIBUTE THE REMAININ G FIREARM, 22
FIREARM ACCESSORY , AND AMMUNITION EXCIS E TAX REVENUE AS FOL LOWS: 23
(1) 44% TO THE MARYLAND TRAUMA PHYSICIAN SERVICES FUND 24
ESTABLISHED UNDER § 19–130 OF THE HEALTH – GENERAL ARTICLE; 25
SENATE BILL 784 5
(2) 29% TO THE R ADAMS COWLEY SHOCK TRAUMA CENTER AT THE 1
UNIVERSITY OF MARYLAND MEDICAL SYSTEM; 2
(3) 23% TO THE VIOLENCE INTERVENTION AND PREVENTION 3
PROGRAM FUND ESTABLISHED UNDER § 4–902 OF THE PUBLIC SAFETY ARTICLE; 4
(4) 2% TO THE SURVIVORS OF HOMICIDE VICTIMS GRANT PROGRAM 5
WITHIN THE GOVERNOR’S OFFICE OF CRIME PREVENTION AND POLICY; AND 6
(5) 2% TO THE CENTER FOR FIREARM VIOLENCE PREVENTION AND 7
INTERVENTION WITHIN THE MARYLAND DEPARTMENT OF HEALTH. 8
(B) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT THE REV ENUE 9
DISTRIBUTED UNDER SU BSECTION (A) OF THIS SECTION SUPP LEMENT, AND NOT 10
SUPPLANT, ANY OTHER FUNDING RE QUIRED BY LAW . 11
TITLE 7.7. FIREARM, FIREARM ACCESSORY, AND AMMUNITION EXCISE TAX. 12
SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 13
7.7–101. 14
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 15
INDICATED. 16
(B) “AMMUNITION” HAS THE MEANING STAT ED IN § 5–133.1 OF THE PUBLIC 17
SAFETY ARTICLE. 18
(C) “FEDERALLY LICENSED FIREARMS DE ALER” MEANS A PERSON 19
LICENSED BY THE FEDE RAL BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND 20
EXPLOSIVES TO DEAL IN FIREARMS. 21
(D) “FIREARM” HAS THE MEANING STAT ED IN § 5–101 OF THE PUBLIC 22
SAFETY ARTICLE. 23
(E) “FIREARM ACCESSORY ” MEANS: 24
(1) A MAGAZINE OR MAGAZI NE LOADER; 25
(2) A FIREARM SCOPE OR O PTIC; 26
(3) A STOCK; 27
6 SENATE BILL 784
(4) A GRIP; 1
(5) A HANDGUARD ; OR 2
(6) BODY ARMOR . 3
(F) (1) “GROSS RECEIPTS ” MEANS THE TOTAL AMOU NT OF THE SALE OR 4
LEASE OR RENTAL PRIC E OF THE RETAIL SALE BY A PERSON, VALUED IN MONEY , 5
WHETHER RECEIVED IN MONEY OR OTHERWISE , WITHOUT ANY DEDUCTIO N FOR: 6
(I) THE COST OF THE PROP ERTY SOLD; 7
(II) THE COST OF THE MATE RIALS USED, LABOR OR SERVICE 8
COST, INTEREST PAID, LOSSES, OR ANY OTHER EXPENSE ; OR 9
(III) THE COST OF TRANSPORTATION OF THE PROPERTY . 10
(2) “GROSS RECEIPTS” DOES NOT INCLUDE : 11
(I) CASH DISCOUNTS ALLOW ED AND TAKEN ON SALE S; 12
(II) THE SALE PRICE OF PR OPERTY RETURNED BY C USTOMERS 13
WHEN THAT AMOUNT IS REFUNDED IN CASH OR CREDIT UNLESS THE CU STOMER, IN 14
ORDER TO OBTAIN THE REFUND, IS REQUIRED TO PURCH ASE OTHER PROPERTY A T 15
A PRICE GREATER THAN THE AMOUNT CHARGED F OR THE PROPERTY THAT IS 16
RETURNED; 17
(III) THE PRICE RECEIVED F OR LABOR OR SERVICES USED IN 18
INSTALLING OR APPLYI NG THE PROPERTY SOLD ; AND 19
(IV) THE AMOUNT OF ANY TA X IMPOSED BY THE UNITED STATES, 20
THE STATE, A COUNTY, OR A MUNICIPAL CORPO RATION ON OR WITH RE SPECT TO 21
RETAIL SALES WHETHER IMPOSED ON THE PERSO N OR THE CONSUMER . 22
(G) “LAW ENFORCEMENT AGENC Y” MEANS: 23
(1) A STATE, COUNTY, OR MUNIC IPAL POLICE DEPARTME NT OR 24
AGENCY; 25
(2) A SHERIFF’S OFFICE; OR 26
(3) A FEDERAL LAW ENFORC EMENT AGENCY . 27
SENATE BILL 784 7
7.7–102. 1
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, AN EXCISE 2
TAX IS IMPOSED ON TH E GROSS RECEIPTS OF A FEDERALLY LICENSED FIREARMS 3
DEALER DERIVED FROM T HE SALES OF FIREARMS , FIREARM ACCESSORIES , AND 4
AMMUNITION IN THE STATE. 5
(B) THE TAX IMPOSED UNDER SUBSECTION (A) OF THIS SECTION DOES NOT 6
APPLY TO THE SALE OF A FIREARM, FIREARM ACCESSORY , OR AMMUNITION TO A 7
LAW ENFORCEMENT AGEN CY, THE ARMED FORCES OF THE UNITED STATES, OR THE 8
NATIONAL GUARD. 9
7.7–103. 10
THE FIREARM, FIREARM ACCESSORY , AND AMMUNITION EXCIS E TAX RATE IS 11
11%. 12
SUBTITLE 2. RETURNS. 13
7.7–201. 14
(A) A FEDERALLY LICENSED F IREARMS DEALER SHALL COMPLETE, UNDER 15
OATH, AND FILE WITH THE COMPTROLLER A FIREARM , FIREARM ACCESSORY , AND 16
AMMUNITION EXCISE TA X RETURN: 17
(1) ON OR BEFORE THE 25TH DAY OF THE MONTH THAT FOLLOWS THE 18
MONTH IN WHICH THE P ERSON SELLS ANY FIRE ARMS, FIREARM ACCESSORIES , OR 19
AMMUNITION WITHIN TH E BOUNDARIES OF T HE STATE; AND 20
(2) IF THE COMPTROLLER SO SPECIF IES, BY REGULATION , ON OTHER 21
DATES FOR EACH MONTH IN WHICH THE LICENSE E DOES NOT SELL ANY FIREARMS, 22
FIREARM ACCESSORIES , OR AMMUNITION IN THE STATE. 23
(B) A PERSON REQUIRED TO F ILE A RETURN UNDER T HIS SECTION SHALL 24
FILE WITH THE RETURN AN ATTACHMENT THAT S TATES ANY INFORMATIO N THAT 25
THE COMPTROLLER REQUIRES TO DETERMINE THE GRO SS RECEIPTS DERIVED 26
FROM THE SALES OF FI REARMS, FIREARM ACCESSORIES , AND AMMUNITION IN TH E 27
STATE. 28
7.7–202. 29
A PERSON REQUIRED TO F ILE A RETURN UNDER § 7.7–201 OF THIS SUBTITLE 30
SHALL MAINTAIN RECOR DS OF THE FIREARMS , FIREARMS ACCESSORIES , AND 31 8 SENATE BILL 784
AMMUNITION SOLD IN T HE STATE AND THE BASIS F OR THE CALCULATION O F THE 1
FIREARM, FIREARM ACCESSORY , AND AMMUNITION EXCIS E TAX OWED. 2
SUBTITLE 3. TAX PAYMENT. 3
7.7–301. 4
(A) EACH PERSON REQUIRED TO FILE A RETURN UND ER § 7.7–201 OF THIS 5
TITLE SHALL PAY THE FIREARM, FIREARM ACCESSORY , AND AMMUNITION EXCIS E 6
TAX IN THE MANNER TH AT THE COMPTROLLER REQUIRES , WITH THE RETURN THAT 7
COVERS THE PERIOD IN WHICH TH E PERSON SOLD FIREAR MS, FIREARM 8
ACCESSORIES, OR AMMUNITION IN THE STATE. 9
(B) IF A CORPORATION , OTHER THAN A NONSTOC K, NONPROFIT 10
CORPORATION , IS REQUIRED TO PAY T HE FIREARM , FIREARM ACCESSORY , AND 11
AMMUNITION EXCISE TA X, PERSONAL LIABILITY F OR THE TAX AND INTEREST AND 12
PENALTIES ON THE TAX EXTENDS TO ANY OFFIC ER OF THE CORPORATIO N WHO 13
EXERCISES DIRECT CON TROL OVER ITS FISCAL MANAGEMENT . 14
(C) IF A LIMITED LIABILIT Y COMPANY , OR LIMITED LIABILITY 15
PARTNERSHIP , INCLUDING A LIMITED PARTNERSHIP REGISTER ED AS A LIMITED 16
LIABILITY LIMITED PA RTNERSHIP, IS REQUIRED TO PAY T HE FIREARM, FIREARM 17
ACCESSORY, AND AMMUNITION EXCIS E TAX, PERSONAL LIABILITY F OR THE TAX AND 18
INTEREST AND PENALTI ES ON THE TAX EXTEND S TO ANY PERSON WHO EXERCISES 19
DIRECT CONTROL OVER THE FISCAL MAN AGEMENT OF THE LIMIT ED LIABILITY 20
COMPANY OR LIMITED L IABILITY PARTNERSHIP . 21
13–201. 22
In this subtitle, “tax information” means: 23
(3) any information contained in: 24
(xvi) a tobacco tax return; [or] 25
(xvii) a transportation services assessment return; OR 26
(XVIII) A FIREARM, FIREARM ACCESSORY , AND AMMUNITION 27
EXCISE TAX RETURN . 28
13–508. 29
(a) Within 30 days after the date on which a notice of assessment of the 30
admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, 31 SENATE BILL 784 9
FIREARM, FIREARM ACCESSORY , AND AMMUNITION EXCIS E TAX, income tax, motor 1
carrier tax, motor fuel tax, public service company franchise tax, financial institution 2
franchise tax, sales and use tax, or tobacco tax is mailed, a person or governmental unit 3
against which the assessment is made may submit to the tax collector: 4
(1) an application for revision of the assessment; or 5
(2) except for the public service company franchise tax, if the assessment 6
is paid, a claim for refund. 7
(b) If a person or governmental unit fails to submit an application for revision or 8
claim for refund within the time allowed in subsection (a) of this section, the assessment 9
becomes final. 10
(c) The Comptroller or an employee of the Comptroller’s office expressly 11
designated by the Comptroller promptly: 12
(1) (i) shall hold an informal hearing on a person’s or governmental 13
unit’s admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, 14
FIREARM, FIREARM ACCESSORY , AND AMMUNITION EXCIS E TAX, income tax, motor 15
carrier tax, motor fuel tax, sales and use tax, or tobacco tax application for revision or claim 16
for refund under subsection (a) of this section; and 17
(ii) after the hearing: 18
1. shall act on the application for revision; and 19
2. may assess any additional tax, penalty, and interest due; 20
and 21
(2) shall mail to the person or governmental unit a notice of final 22
determination. 23
13–509. 24
(a) Notwithstanding a person’s failure to file a timely application for revision or 25
claim for refund of an assessment of the admissions and amusement tax, alcoholic beverage 26
tax, boxing and wrestling tax, FIREARM, FIREARM ACCESSORY , AND AMMUNITION 27
EXCISE TAX, income tax, motor carrier tax, motor fuel tax, sales and use tax, or tobacco tax 28
under § 13–508(a) of this subtitle, the Comptroller or the Comptroller’s designee may issue 29
an order decreasing or abating an assessment to correct an erroneous assessment. 30
(b) If action is taken under subsection (a) of this section, the order shall state 31
clearly the reasons for decreasing or abating the assessment. 32
(c) Any order issued by the Comptroller under subsection (a) of this section shall 33
be final and not subject to appeal. 34 10 SENATE BILL 784
(d) The Comptroller’s refusal to enter an order under subsection (a) of this section 1
shall be final and not subject to appeal. 2
13–825. 3
(J) THE COMPTROLLER MAY REQUI RE A PERSON SUBJECT TO THE 4
FIREARM, FIREARM ACCESSORY , AND AMMUNITION EXCIS E TAX TO POST SECURI TY 5
FOR THE FIREARM , FIREARM ACCESSORY , AND AMMUNITION EXCIS E TAX IN THE 6
AMOUNT THAT THE COMPTROLLER DETERMINES . 7
13–1001. 8
(H) A PERSON WHO IS REQUIR ED TO FILE A FIREARM , FIREARM ACCESSORY , 9
AND AMMUNITION EXCIS E TAX RETURN AND WHO WILLFULLY FAILS TO F ILE THE 10
RETURN AS REQUIRED U NDER TITLE 7.7 OF THIS ARTICLE IS G UILTY OF A 11
MISDEMEANOR AND , ON CONVICTION, IS SUBJECT TO A FINE NOT EXCEEDING $5,000 12
OR IMPRISONMENT NOT EXCEEDING 5 YEARS OR BOTH . 13
13–1002. 14
(a) A person who willfully files a false alcoholic beverage tax return OR A FALSE 15
FIREARM, FIREARM ACCESSORY , AND AMMUNITION EXCIS E TAX RETURN is guilty of 16
perjury and, on conviction, is subject to the penalty for perjury. 17
(b) A person, including an officer of a corporation, who willfully files a false digital 18
advertising gross revenues tax return, a false financial institution franchise tax return, a 19
false public service company franchise tax return, or a false income tax return with the 20
intent to evade the payment of tax due under this article is guilty of perjury and, on 21
conviction, is subject to the penalty for perjury. 22
(c) Subsections (a) and (b) of this section apply to the alcoholic beverage, digital 23
advertising gross revenues, FIREARM, FIREARM ACCESSORY , AND AMMUNITION 24
EXCISE, financial institution franchise, public service company franchise, and income 25
taxes. 26
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27
1, 2025. 28