MD SB118

Imposes an 11% excise tax on gross receipts from retail sales of firearms, firearm accessories, and ammunition by federally licensed firearms dealers in Maryland, effective July 1, 2027 for large retailers (20,000+ sq ft) and July 1, 2028 for other dealers

Exempts sales to law enforcement agencies, Armed Forces, National Guard, and law enforcement officers from the tax

Out-of-state dealers are subject to the tax only if they exceed $100,000 in gross revenue from Maryland residents or complete 200+ separate firearm transactions with Maryland residents annually

Distributes tax revenue to six programs: Maryland Violence Intervention and Prevention Program Fund (26%), Center for Firearm Violence Prevention and Intervention (26%), Coordinated Community Supports Partnership Fund (20%), Survivors of Homicide Victims Grant Program (20%), Maryland Trauma Physician Services Fund (4%), and R Adams Cowley Shock Trauma Center (4%)

Requires monthly tax returns filed by the 25th of each following month, with criminal penalties of up to $5,000 fine and/or 5 years imprisonment for willful failure to file or filing false returns