HB 2558 Virginia House of Delegates · 2025 Regular Session

Retail Sales and Use Tax; imposes firearm and ammunition taxes.

Summary

Retail sales and use tax; firearm and ammunition taxes. Imposes (i) a firearm tax in the amount of $5 per firearm and (ii) a firearm ammunition tax of one cent ($0.01) per round of firearm ammunition that is sold by firearm seller, defined in the bill. The bill requires any revenue proceeds from such taxes to be used to prevent gun violence and enhance school safety.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 12, 2025 Last action Feb 4, 2025

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What changed between versions

Introduced → Subcommittee #1 Substitute Offered · 4 edits

MODERATE

The bill was amended from its original introduction to a substitute version offered by the House Committee on Finance. The main substantive change is the addition of a new Section 2 establishing a July 1, 2026 effective date for the firearm and ammunition taxes, which was previously set for July 1, 2025. Additionally, Section 58.1-664 was modified to require the Tax Commissioner to develop implementing guidelines that are exempt from the Administrative Process Act. The tax amounts ($5 per firearm and $1 per round of ammunition) and revenue distribution (50% to localities, 50% to the Gun Violence Intervention and Prevention Fund) remain unchanged.

Scope change

The bill's scope remains the same - it still imposes taxes on firearm and ammunition sales in Virginia - but the effective date was delayed by one year and administrative implementation requirements were added.

TIMELINE

The effective date for the firearm and ammunition taxes was changed from July 1, 2025 to July 1, 2026, giving businesses and consumers one additional year before the taxes take effect.

The original July 1, 2025 effective date was removed from the bill text and replaced with the new July 1, 2026 date in a new Section 2.

REQUIREMENT

The Tax Commissioner is now required to develop guidelines for implementing the new tax chapter, and these guidelines are exempt from the Administrative Process Act, meaning they won't require the usual public notice and comment periods.

TECHNICAL

The bill was reformatted from a simple introduction to a formal substitute amendment with proper legislative formatting and section numbering.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jan 24, 2025

Committee

Assigned Finance sub: Subcommittee #1

lower

Jan 12, 2025

Committee

Referred to Committee on Finance

lower

1 primary · 0 co-sponsors