EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0387*
HOUSE BILL 387
Q7, E4, J1 5lr1693
By: Delegates Mireku–North, Amprey, Boafo, Charkoudian, Fair, Feldmark,
Kaufman, J. Lewis, Lopez, Palakovich Carr, Pena–Melnyk, Shetty,
Solomon, Spiegel, Stewart, Taveras, Wilkins, Wims, Woorman, and Young
Introduced and read first time: January 16, 2025
Assigned to: Ways and Means
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 in the State and sales of firearms to 4
residents of the State; and generally relating to a tax on gross receipts derived from 5
sales of firearms. 6
BY repealing and reenacting, without amendments, 7
Article – Education 8
Section 7–447.1(p)(2) 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2024 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – Education 13
Section 7–447.1(p)(6) 14
Annotated Code of Maryland 15
(2022 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – Health – General 18
Section 19–130(b)(1) 19
Annotated Code of Maryland 20
(2023 Replacement Volume and 2024 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Health – General 23
Section 19–130(c) 24
Annotated Code of Maryland 25 2 HOUSE BILL 387
(2023 Replacement Volume and 2024 Supplement) 1
BY repealing and reenacting, without amendments, 2
Article – Public Safety 3
Section 4–902(a) and 5–101(a) and (h) 4
Annotated Code of Maryland 5
(2022 Replacement Volume and 2024 Supplement) 6
BY repealing and reenacting, with amendments, 7
Article – Public Safety 8
Section 4–902(e)(1) 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2024 Supplement) 11
BY repealing and reenacting, without amendments, 12
Article – Tax – General 13
Section 1–101(a) and 13–508(b) 14
Annotated Code of Maryland 15
(2022 Replacement Volume and 2024 Supplement) 16
BY adding to 17
Article – Tax – General 18
Section 1–101(h–1); 2–4B–01 and 2–4B–02 to be under the new subtitle “Subtitle 4B. 19
Firearm Excise Tax Revenue Distribution”; 7.7–101 through 7.7–301 to be 20
under the new title “Title 7.7. Firearm Excise Tax”; and 21
13–201(4)(xix), 13–825(j), and 13–1001(h) 22
Annotated Code of Maryland 23
(2022 Replacement Volume and 2024 Supplement) 24
BY repealing and reenacting, with amendments, 25
Article – Tax – General 26
Section 2–102(a), 13–201(4)(xvii) and (xviii), 13–508(a) and (c), 13–509, and 13–1002 27
Annotated Code of Maryland 28
(2022 Replacement Volume and 2024 Supplement) 29
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 30
That the Laws of Maryland read as follows: 31
Article – Education 32
7–447.1. 33
(p) (2) There is a Coordinated Community Supports Partnership Fund. 34
(6) The Fund consists of: 35
(i) Money appropriated in the State budget to the Fund; 36 HOUSE BILL 387 3
(ii) REVENUE DISTRIBUTED T O THE FUND UNDER § 2–4B–02 OF 1
THE TAX – GENERAL ARTICLE; 2
(III) Interest earnings; and 3
[(iii)] (IV) Any other money from any other source accepted for the 4
benefit of the Fund. 5
Article – Health – General 6
19–130. 7
(b) (1) There is a Maryland Trauma Physician Services Fund. 8
(c) The Fund consists of: 9
(1) Motor vehicle registration surcharges paid into the Fund in accordance 10
with § 13–954(b)(2) of the Transportation Article; 11
(2) At least 20% of the fines collected under § 21–902(a)(1), (b)(2), (c)(2), 12
and (d)(1) of the Transportation Article; [and] 13
(3) REVENUE DISTRIBUTED T O THE FUND UNDER § 2–4B–02 OF THE 14
TAX – GENERAL ARTICLE; AND 15
(4) Any other money transferred from the General Fund of the State. 16
Article – Public Safety 17
4–902. 18
(a) There is a Maryland Violence Intervention and Prevention Program Fund. 19
(e) (1) The Fund consists of: 20
(i) money appropriated in the State budget to the Fund; 21
(ii) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–4B–02 OF 22
THE TAX – GENERAL ARTICLE; 23
(III) investment earnings of the Fund; and 24
[(iii)] (IV) money from any other source accepted for the benefit of 25
the Fund. 26
4 HOUSE BILL 387
5–101. 1
(a) In this subtitle the following words have the meanings indicated. 2
(h) (1) “Firearm” means: 3
(i) a weapon that expels, is designed to expel, or may readily be 4
converted to expel a projectile by the action of an explosive; 5
(ii) the frame or receiver of such a weapon; or 6
(iii) an unfinished frame or receiver, as defined in § 5–701 of this title. 7
(2) “Firearm” includes a starter gun. 8
Article – Tax – General 9
1–101. 10
(a) In this article the following words have the meanings indicated. 11
(H–1) “FIREARM EXCISE TAX ” MEANS THE TAX IMPOSE D UNDER TITLE 7.7 OF 12
THIS ARTICLE. 13
2–102. 14
(a) In addition to the duties set forth elsewhere in this article and in other articles 15
of the Code, the Comptroller shall administer the laws that relate to: 16
(1) the admissions and amusement tax; 17
(2) the boxing and wrestling tax; 18
(3) the digital advertising gross revenues tax; 19
(4) THE FIREARM EXCISE T AX; 20
(5) the income tax; 21
[(5)] (6) the Maryland estate tax; 22
[(6)] (7) the Maryland generation–skipping transfer tax; 23
[(7)] (8) the motor carrier tax; 24
[(8)] (9) the motor fuel tax; 25 HOUSE BILL 387 5
[(9)] (10) the sales and use tax; and 1
[(10)] (11) the savings and loan association franchise tax. 2
SUBTITLE 4B. FIREARM EXCISE TAX REVENUE DISTRIBUTION. 3
2–4B–01. 4
FROM THE FIREARM EXCI SE TAX REVENUE , THE COMPTROLLER SHALL 5
DISTRIBUTE THE AMOUN T NECESSARY TO ADMIN ISTER THE FIREARM EX CISE TAX 6
LAWS TO AN ADMINISTR ATIVE COST ACCOUNT . 7
2–4B–02. 8
(A) AFTER MAKING THE DIST RIBUTION REQUIRED UN DER § 2–4B–01 OF 9
THIS SUBTITLE, THE COMPTROLLER SHALL DIS TRIBUTE THE REMAININ G FIREARM 10
EXCISE TAX REVENUE EQUALLY AMONG THE FO LLOWING: 11
(1) THE COORDINATED COMMUNITY SUPPORTS PARTNERSHIP FUND 12
ESTABLISHED UNDER § 7–447.1 OF THE EDUCATION ARTICLE; 13
(2) THE MARYLAND TRAUMA PHYSICIAN SERVICES FUND 14
ESTABLISHED UNDER § 19–130 OF THE HEALTH – GENERAL ARTICLE; 15
(3) THE R ADAMS COWLEY SHOCK TRAUMA CENTER AT THE 16
UNIVERSITY OF MARYLAND MEDICAL SYSTEM; 17
(4) THE MARYLAND VIOLENCE INTERVENTION AND PREVENTION 18
PROGRAM FUND ESTABLISHED UNDE R § 4–902 OF THE PUBLIC SAFETY ARTICLE; 19
(5) THE SURVIVORS OF HOMICIDE VICTIMS GRANT PROGRAM 20
WITHIN THE GOVERNOR’S OFFICE OF CRIME PREVENTION AND POLICY; AND 21
(6) THE CENTER FOR FIREARM VIOLENCE PREVENTION AND 22
INTERVENTION WITHIN T HE MARYLAND DEPARTMENT OF HEALTH. 23
(B) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT THE REV ENUE 24
DISTRIBUTED UNDER SU BSECTION (A) OF THIS SECTION SUPP LEMENT, AND NOT 25
SUPPLANT, ANY OTHER FUNDING RE QUIRED BY LAW . 26
TITLE 7.7. FIREARM EXCISE TAX. 27
SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 28 6 HOUSE BILL 387
7.7–101. 1
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 2
INDICATED. 3
(B) “FEDERALLY LICENSED FI REARMS DEALER ” MEANS A PERSON 4
LICENSED BY THE FEDE RAL BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND 5
EXPLOSIVES TO DEAL IN FIREARMS. 6
(C) “FIREARM” HAS THE MEANING STAT ED IN § 5–101 OF THE PUBLIC 7
SAFETY ARTICLE. 8
(D) (1) “GROSS RECEIPTS ” MEANS THE TOTAL AMOU NT OF THE SALE OR 9
LEASE OR RENTAL PRIC E OF THE RETAIL SALE BY A PERSON, VALUED IN MONEY , 10
WHETHER RECEIVED IN MONEY OR OTHERWISE , WITHOUT ANY DEDUCTIO N FOR: 11
(I) THE COST OF THE PROP ERTY SOLD; 12
(II) THE COST OF THE MATE RIALS USED, LABOR OR SERVICE 13
COST, INTEREST PAID, LOSSES, OR ANY OTHER EXPENSE ; OR 14
(III) THE COST OF TRANSPORTATIO N OF THE PROPERTY . 15
(2) “GROSS RECEIPTS” DOES NOT INCLUDE : 16
(I) CASH DISCOUNTS ALLOW ED AND TAKEN ON SALE S; 17
(II) THE SALE PRICE OF PR OPERTY RETURNED BY C USTOMERS 18
WHEN THAT AMOUNT IS REFUNDED IN CASH OR CREDIT UNLESS THE CU STOMER, IN 19
ORDER TO OBTAIN THE REFUND, IS REQUIRED TO PURCH ASE OTHER PROPERTY A T 20
A PRICE GREATER THAN THE AMOUNT CHARGED F OR THE PROPERTY THAT IS 21
RETURNED; 22
(III) THE PRICE RECEIVED F OR LABOR OR SERVICES USED IN 23
INSTALLING OR APPLYI NG THE PROPERTY SOLD ; AND 24
(IV) THE AMOUNT OF ANY TA X IMPOSED BY THE UNITED STATES, 25
THE STATE, A COUNTY, OR A MUNICIPAL CORPO RATION ON OR WITH RE SPECT TO 26
RETAIL SALES WHETHER IMPOSED ON THE PERSO N OR THE CONSUMER . 27
(E) “LARGE RETAILER ” MEANS A BUSINESS WHOSE RETAIL FACILIT Y HAS A 28
FOOTPRINT OF AT LEAS T 20,000 SQUARE FEET. 29 HOUSE BILL 387 7
(F) “LAW ENFORCEMENT AGENC Y” MEANS: 1
(1) A STATE, COUNTY, OR MUNICIPAL POLICE DEPARTMENT OR 2
AGENCY; 3
(2) A SHERIFF’S OFFICE; OR 4
(3) A FEDERAL LAW ENFORC EMENT AGENCY . 5
(G) “LAW ENFORCEMENT OFFIC ER” MEANS AN INDIVIDUAL WHO IN AN 6
OFFICIAL CAPACITY IS AUTHORIZED BY STATE OR FEDERAL LAW TO MAKE ARRESTS 7
AND REQUIRED , AS PART OF THE INDIV IDUAL’S EMPLOYMENT , TO CARRY A 8
FIREARM. 9
(H) “RETAIL SALE” MEANS A SALE FOR A P URPOSE OTHER T HAN RESALE IN 10
THE REGULAR COURSE O F BUSINESS. 11
7.7–102. 12
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION AND 13
SUBJECT TO SUBSECTIO NS (C) AND (D) OF THIS SECTION, AN EXCISE TAX IS IMP OSED 14
ON THE GROSS RECEIPT S OF A FEDERALLY LIC ENSED FIREARMS DEALE R DERIVED 15
FROM: 16
(1) THE RETAIL SALE OF FIREARMS IN THE STATE; AND 17
(2) IN THE CASE OF A FED ERALLY LICENSED FIRE ARMS DEALER THAT 18
IS LOCATED OUT SIDE THE STATE, THE RETAIL SALE OF F IREARMS TO RESIDENTS OF 19
THE STATE. 20
(B) THE TAX IMPOSED UNDER SUBSECTION (A) OF THIS SECTION DOES NOT 21
APPLY TO THE SALE OF A FIREARM TO: 22
(1) A LAW ENFORCEMENT AG ENCY; 23
(2) THE ARMED FORCES OF THE UNITED STATES; 24
(3) THE NATIONAL GUARD; 25
(4) A LAW ENFORCEMENT OF FICER; 26
(5) A RETIRED LAW ENFORC EMENT OFFICER ; OR 27 8 HOUSE BILL 387
(6) AN INDIVIDUAL FOR TH E EXCLUSIVE PURPOSE OF COMPETITION 1
SHOOTING OR MATCH SH OOTING. 2
(C) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION , THE TAX 3
IMPOSED UNDER SUBSEC TION (A) OF THIS SECTION APPL IES TO: 4
(1) A RETAIL SALE MADE ON OR AFTER JULY 1, 2027 BY A FEDERALLY 5
LICENSED FIREARMS DE ALER THAT IS A LARGE RETAILER ; AND 6
(2) FOR ANY OTHER FE DERALLY LICENSED FIR EARMS DEALER , A 7
RETAIL SALE MADE ON OR AFTER JULY 1, 2028. 8
(D) IF THE FEDERALLY LICE NSED FIREARMS DEALER IS LOCATED OUT SIDE 9
THE STATE, THE TAX IMPOSED UNDE R SUBSECTION (A) OF THIS SECTION APPL IES 10
ONLY IF THE FEDERALLY LIC ENSED FIREARMS DEALER, DURING THE PREVIOUS 11
CALENDAR YEAR OR THE CURRENT CALENDAR YEAR : 12
(1) DERIVES GROSS REVENU E FROM THE SALE OF F IREARMS TO 13
RESIDENTS OF THE STATE THAT EXCEEDS $100,000; OR 14
(2) SELLS FIREARMS TO RESIDENTS OF THE STATE FOR DELIVERY 15
INTO THE STATE IN 200 OR MORE SEPARATE TRA NSACTIONS. 16
7.7–103. 17
THE FIREARM EXCISE TAX R ATE IS 11%. 18
SUBTITLE 2. RETURNS. 19
7.7–201. 20
(A) A FEDERALLY LICENSED F IREARMS DEALER SHALL COMPLETE, UNDER 21
OATH, AND FILE WITH THE COMPTROLLER A FIREARM EXCISE TAX RETURN : 22
(1) ON OR BEFORE THE 25TH DAY OF THE MONTH THAT FOLLOWS THE 23
MONTH IN WHICH THE P ERSON SOLD ANY FIREARMS WITHIN THE BOUNDARIES OF 24
THE STATE OR, IN THE CASE OF A FED ERALLY LICENSED FIRE ARMS DEALER THAT 25
IS LOCATED OUT SIDE THE STATE, SOLD FIREARMS TO RESIDENTS OF THE STATE; 26
AND 27
(2) IF THE COMPTROLLER SO SPECIF IES, BY REGULATION , ON OTHER 28
DATES FOR EACH MONTH IN WHICH THE LICENSE E DID NOT SELL ANY FIREARM S IN 29 HOUSE BILL 387 9
THE STATE OR, IN THE CASE OF A FED ERALLY LICENSED FIRE ARMS DEALER THAT 1
IS LOCATED OUT SIDE THE STATE, DID NOT SELL ANY FIREARMS TO RESIDENTS OF 2
THE STATE. 3
(B) A PERSON REQUIRED TO F ILE A RETURN UNDER T HIS SECTION SHALL 4
FILE WITH THE RETURN AN ATTACHMENT THAT S TATES ANY INFORMATIO N THAT 5
THE COMPTROLLER REQUIRES TO DETERMINE THE GRO SS RECEIPTS DERIVED 6
FROM THE RETAIL SALES OF FIREARMS IN THE STATE OR, IN THE CASE OF A 7
FEDERALLY LICENSED F IREARMS DEALER THAT IS LOCATED OUT SIDE THE STATE, 8
RETAIL SALES OF FIREARMS TO RESIDENTS OF THE STATE. 9
7.7–202. 10
A PERSON REQUIRED TO F ILE A RETURN UNDER § 7.7–201 OF THIS SUBTITLE 11
SHALL MAINTAIN RECOR DS OF THE FIREARMS S OLD IN THE STATE OR, IN THE CASE 12
OF A FEDERALLY LICEN SED FIREARMS DEALER THAT IS LOCATED OUT SIDE THE 13
STATE, FIREARMS SOLD TO RES IDENTS OF THE STATE, AND THE BASIS FOR TH E 14
CALCULATION OF THE F IREARM EXCISE TAX OW ED. 15
SUBTITLE 3. TAX PAYMENT. 16
7.7–301. 17
(A) EACH PERSON REQUIRED TO F ILE A RETURN UNDER § 7.7–201 OF THIS 18
TITLE SHALL PAY THE FIREARM EXCISE TAX I N THE MANNER THAT TH E 19
COMPTROLLER REQUIRES WITH THE RETURN THAT COVERS THE PERIOD IN WHICH 20
THE PERSON SOLD FIRE ARMS IN THE STATE OR, IN THE CASE OF A FED ERALLY 21
LICENSED FIREARMS DE ALER THAT IS LOCATED OUTSIDE THE STATE, SOLD 22
FIREARMS TO RESIDENT S OF THE STATE. 23
(B) IF A CORPORATION OTHE R THAN A NONSTOCK , NONPROFIT 24
CORPORATION IS REQUI RED TO PAY THE FIREA RM EXCISE TAX , PERSONAL 25
LIABILITY FOR THE TA X AND INTEREST AND PENALTIES ON THE TAX EXTENDS TO 26
ANY OFFICER OF THE C ORPORATION WHO EXERC ISES DIRECT CONTROL OVER ITS 27
FISCAL MANAGEMENT . 28
(C) IF A LIMITED LIABILIT Y COMPANY OR LIMITED LIABILITY 29
PARTNERSHIP , INCLUDING A LIMITED PARTNERSHIP REGISTER ED AS A LIMITED 30
LIABILITY LIMITED PARTNE RSHIP, IS REQUIRED TO PAY T HE FIREARM EXCISE TA X, 31
PERSONAL LIABILITY F OR THE TAX AND INTER EST AND PENALTIES ON THE TAX 32
EXTENDS TO ANY PERSO N WHO EXERCISES DIRE CT CONTROL OVER THE FISCAL 33
MANAGEMENT OF THE LI MITED LIABILITY COMP ANY OR LIM ITED LIABILITY 34
PARTNERSHIP . 35 10 HOUSE BILL 387
13–201. 1
In this subtitle, “tax information” means: 2
(4) any information contained in: 3
(xvii) a tobacco tax return; [or] 4
(xviii) a transportation services assessment return; OR 5
(XIX) A FIREARM EXCISE TAX RETURN. 6
13–508. 7
(a) Within 30 days after the date on which a notice of assessment of the 8
admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, 9
FIREARM EXCISE TAX , income tax, motor carrier tax, motor fuel tax, public service 10
company franchise tax, financial institution franchise tax, sales and use tax, or tobacco tax 11
is mailed, a person or governmental unit against which the assessment is made may submit 12
to the tax collector: 13
(1) an application for revision of the assessment; or 14
(2) except for the public service company franchise tax, if the assessment 15
is paid, a claim for refund. 16
(b) If a person or governmental unit fails to submit an application for revision or 17
claim for refund within the time allowed in subsection (a) of this section, the assessment 18
becomes final. 19
(c) The Comptroller or an employee of the Comptroller’s office expressly 20
designated by the Comptroller promptly: 21
(1) (i) shall hold an informal hearing on a person’s or governmental 22
unit’s admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, 23
FIREARM EXCISE TAX , income tax, motor carrier tax, motor fuel tax, sales and use tax, or 24
tobacco tax application for revision or claim for refund under subsection (a) of this section; 25
and 26
(ii) after the hearing: 27
1. shall act on the application for revision; and 28
2. may assess any additional tax, penalty, and interest due; 29
and 30 HOUSE BILL 387 11
(2) shall mail to the person or governmental unit a notice of final 1
determination. 2
13–509. 3
(a) Notwithstanding a person’s failure to file a timely application for revision or 4
claim for refund of an assessment of the admissions and amusement tax, alcoholic beverage 5
tax, boxing and wrestling tax, FIREARM EXCISE TAX , income tax, motor carrier tax, motor 6
fuel tax, sales and use tax, or tobacco tax under § 13–508(a) of this subtitle, the Comptroller 7
or the Comptroller’s designee may issue an order decreasing or abating an assessment to 8
correct an erroneous assessment. 9
(b) If action is taken under subsection (a) of this section, the order shall state 10
clearly the reasons for decreasing or abating the assessment. 11
(c) Any order issued by the Comptroller under subsection (a) of this section shall 12
be final and not subject to appeal. 13
(d) The Comptroller’s refusal to enter an order under subsection (a) of this section 14
shall be final and not subject to appeal. 15
13–825. 16
(J) THE COMPTROLLER MAY REQUI RE A PERSON SUBJECT TO THE 17
FIREARM EXCISE TAX T O POST SECURITY FOR THE FIREARM EXCISE T AX IN THE 18
AMOUNT THAT THE COMPTROLLER DETERMINE S. 19
13–1001. 20
(H) A PERSON WHO IS REQUIR ED TO FILE A FIREARM EXCISE TAX RETURN 21
AND WHO WILLFULLY FA ILS TO FILE THE RETU RN AS REQUIRED UNDER TITLE 7.7 22
OF THIS ARTICLE IS G UILTY OF A MISDEMEAN OR AND, ON CONVICTION , IS SUBJECT 23
TO A FINE NOT EXCEEDING $5,000 OR IMPRISONMENT NOT EXCEEDING 5 YEARS OR 24
BOTH. 25
13–1002. 26
(a) A person who willfully files a false alcoholic beverage tax return OR A FALSE 27
FIREARM EXCISE TAX R ETURN is guilty of perjury and, on conviction, is subject to the 28
penalty for perjury. 29
(b) A person, including an officer of a corporation, who willfully files a false digital 30
advertising gross revenues tax return, a false financial institution franchise tax return, a 31
false public service company franchise tax return, or a false income tax return with the 32 12 HOUSE BILL 387
intent to evade the payment of tax due under this article is guilty of perjury and, on 1
conviction, is subject to the penalty for perjury. 2
(c) Subsections (a) and (b) of this section apply to the alcoholic beverage, digital 3
advertising gross revenues, FIREARM EXCISE , financial institution franchise, public 4
service company franchise, and income taxes. 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6
1, 2027. 7