Proposition KK passes: Colorado voters approve excise tax on guns and ammunition

Colorado voters on Tuesday approved a 6.5% excise tax on firearms and ammunition, joining California as one of just two states to impose special taxes on gun sales.

The 6.5% tax is expected to generate $39 million a year to fund an array of mental health programs and support services for crime victims, some of which are at risk of running out of money.

Proposition KK had received 54% of votes in favor as of 11:40 p.m., and its supporters declared victory Tuesday night. The Associated Press called the race at 2:18 a.m. Wednesday with the vote share unmoved.

The measure was referred to the ballot earlier this year by the state legislature’s Democratic majority. Supporters view it as a way to force gun owners, dealers and manufacturers to chip in to cover some of the societal toll of gun violence, while opponents call it an affront to the Second Amendment right to bear arms.

“Tonight really is a full circle moment for me,” House Majority Leader Monica Duran, D-Wheat Ridge, said in a written statement. “Without the support from crime victim services as a young single mother trapped in an abusive relationship, there is no way I’d be here today celebrating the passage of Prop. KK.”

Most firearm dealers, gun manufacturers and ammunition sellers in Colorado will have to pay a 6.5% excise tax on qualifying sales starting April 1.

That translates to $33 in new taxes on a $500 handgun, or $65 in taxes on a $1,000 rifle; $20 worth of ammunition will cost an extra $1.30. Much of those costs will likely be passed on to consumers.

The tax will also apply to many gun parts and accessories, as well as equipment used to manufacture firearms.

It will not apply to businesses with less than $20,000 in annual sales. Gun purchases by law enforcement agencies as well as police and active duty military officers will be exempt. Private sales from one individual to another will not be subject to the tax, either.

Currently, guns and ammunition sold in Colorado are only subject to state and local sales taxes, as well as a federal excise tax of 10% to 11%.

The bulk of the money generated by the tax will go to Colorado’s Crime Victim Services Fund, a grant program that’s been shrinking for years as federal funding to support crime victims dries up. Most of the services provided through the grants are run by nonprofits, such as the Colorado Coalition Against Domestic Violence, Colorado Legal Services and the Tennyson Center for Children.