MD HB197

Imposes an 11% excise tax on gross receipts of federally licensed firearms dealers from retail sales of firearms, firearm accessories, and ammunition in Maryland, as well as firearm sales to Maryland residents by out-of-state dealers

Tax applies to large retailers (20,000+ square feet) starting July 1, 2027, and to all other dealers starting July 1, 2028; out-of-state dealers are subject only if they exceed $100,000 in gross revenue or 200+ transactions with Maryland residents

Revenue is distributed to violence prevention and community safety programs: 26% to Maryland Violence Intervention and Prevention Program Fund, 26% to Center for Firearm Violence Prevention and Intervention, 20% to Coordinated Community Supports Partnership Fund, 20% to Survivors of Homicide Victims Grant Program, 4% to Maryland Trauma Physician Services Fund, and 4% to R Adams Cowley Shock Trauma Center

Exempts sales to law enforcement agencies, officers, Armed Forces, and National Guard from the tax; also exempts in-person purchases made in other states that don't require processing through a Maryland dealer

Willful failure to file required tax returns is a misdemeanor punishable by up to $5,000 fine and/or 5 years imprisonment; filing false returns constitutes perjury