Sales and use tax exemption-firearms.

13LSO-0028.L1

FISCAL NOTE

The fiscal impact, in the form of a decrease in sales and use taxes from firearm sales, is indeterminable.

Because of the way that firearm sales are aggregated with sales of other products in Wyoming, there is no statistical information available regarding the sales and use tax currently paid on firearm sales in this state. 

However, to provide some estimate of revenue decrease, the Department of Revenue looked to the Bureau of Alcohol, Tobacco and Firearms annual report on firearms manufactured in the U.S.  The latest data available was from 2010. The number of firearms manufactured and imported in the U.S. in 2010 (excluding military) was 8,401,738.  Using the 2010 census figures, the State of Wyoming represents roughly 0.18 percent of the population in the U.S.  Assuming that all guns manufactured and imported were sold, and that Wyoming’s guns sales are proportionate in relation to population, it is assumed that there were roughly 15,100 guns sold in Wyoming in 2010. Using an average sales price of $600 per firearm, total sales of firearms is estimated at $9,060,000 per year.  At an average sales tax rate of 5.38%, the sales tax on firearms sales is estimated at roughly $487,000 per year. It is estimated that this amount would be distributed $252,000 to the General Fund and $235,000 to local governments. This estimate does not take into account the various gun laws among the states, nor does it consider demographics which may influence the number of guns purchased by the states.

Prepared by:   Dean Temte, LSO  Phone: 7777-7881

(Information provided by Dan Noble, Dept. of Revenue; 777-5220)