AN ACT Relating to imposing a new tax on firearms, firearm parts, and ammunition; amending RCW 82.32.145; adding a new chapter to Title 82 RCW; creating a new section; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. Gun violence remains a persistent health and safety threat for people across our state. In Washington, a person is killed by a firearm every 14 hours and nearly half of all suicides are from firearms.

According to the 2022 national veteran suicide prevention annual report, when it comes to comparing veterans and United States adults who died from suicide in 2020, guns were more commonly involved among veterans, 71 percent, than nonveterans, 50.3 percent. Data from the Washington office of firearm safety and violence prevention show that, in 2021, 69 percent of all firearm-related deaths were suicides. Further, deaths by gun violence is the leading cause in Washington for teens between ages 15 and 19.

The legislature intends with this act to impose a sales and use tax on ammunition statewide. The legislature further intends that the revenue from this new sales and use tax will be used to maintain or enhance programs that aim to prevent suicide, reduce firearm-related domestic violence, and support victims services.

NEW SECTION. Sec. 2. (1) There is levied and collected a tax upon each retail sale of a firearm, parts for a firearm, and ammunition at the rate of 11 percent of the selling price.

(2) This tax is in addition to the federal, state, and local sales and use tax imposed on sales of goods and services under chapters 82.08, 82.12, and 82.14 RCW.

(3) The tax imposed under this section does not apply to sales to state, local, or tribal governments for the purposes of supplying law enforcement agencies and tribal law enforcement agencies.

(4) For the purposes of this section the following definitions apply:

(a) "Ammunition" means any projectiles with their fuses, propelling charges, or primers designed to be fired from firearms. "Ammunition" includes any shotgun shell and any rifle, pistol, or revolver cartridge.

(b) "Firearm" has the same meaning as in RCW 9.41.010.

NEW SECTION. Sec. 3. The legislature intends for the revenue generated from the imposition of the tax imposed in section 2 of this act during the 2025-2027 fiscal biennium be appropriated to agencies and programs that are focused on gun violence prevention, including domestic violence prevention, suicide prevention programs, and victims services.

NEW SECTION. Sec. 4. (1) Except as otherwise provided by law and to the extent not inconsistent with this chapter, chapter 82.32 RCW applies to the administration of taxes imposed under this chapter.

(2) The department may adopt rules for administering the tax under this chapter.

Sec. 5. RCW 82.32.145 and 2020 c 301 s 6 are each amended to read as follows:

(1) Whenever the department has issued a warrant under RCW 82.32.210 for the collection of unpaid trust fund taxes from a limited liability business entity and that business entity has been terminated, dissolved, or abandoned, or is insolvent, the department may pursue collection of the entity's unpaid trust fund taxes, including penalties and interest on those taxes, against any or all of the responsible individuals. For purposes of this subsection, "insolvent" means the condition that results when the sum of the entity's debts exceeds the fair market value of its assets. The department may presume that an entity is insolvent if the entity refuses to disclose to the department the nature of its assets and liabilities.

(2) Personal liability under this section may be imposed for state and local trust fund taxes.

(3)(a) For a responsible individual who is the current or a former chief executive or chief financial officer, liability under this section applies regardless of fault or whether the individual was or should have been aware of the unpaid trust fund tax liability of the limited liability business entity.

(b) For any other responsible individual, liability under this section applies only if he or she willfully fails to pay or to cause to be paid to the department the trust fund taxes due from the limited liability business entity.

(4)(a) Except as provided in this subsection (4)(a), a responsible individual who is the current or a former chief executive or chief financial officer is liable under this section only for trust fund tax liability accrued during the period that he or she was the chief executive or chief financial officer. However, if the responsible individual had the responsibility or duty to remit payment of the limited liability business entity's trust fund taxes to the department during any period of time that the person was not the chief executive or chief financial officer, that individual is also liable for trust fund tax liability that became due during the period that he or she had the duty to remit payment of the limited liability business entity's taxes to the department but was not the chief executive or chief financial officer.

(b) All other responsible individuals are liable under this section only for trust fund tax liability that became due during the period he or she had the responsibility or duty to remit payment of the limited liability business entity's taxes to the department.

(5) Persons described in subsection (3)(b) of this section are exempt from liability under this section in situations where nonpayment of the limited liability business entity's trust fund taxes is due to reasons beyond their control as determined by the department by rule.

(6) Any person having been issued a notice of assessment under this section is entitled to the appeal procedures under RCW 82.32.160, 82.32.170, 82.32.180, 82.32.190, and 82.32.200.

(7) This section does not relieve the limited liability business entity of its trust fund tax liability or otherwise impair other tax collection remedies afforded by law.

(8) Collection authority and procedures prescribed in this chapter apply to collections under this section.

(9) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(a) "Chief executive" means: The president of a corporation; or for other entities or organizations other than corporations or if the corporation does not have a president as one of its officers, the highest ranking executive manager or administrator in charge of the management of the company or organization.

(b) "Chief financial officer" means: The treasurer of a corporation; or for entities or organizations other than corporations or if a corporation does not have a treasurer as one of its officers, the highest senior manager who is responsible for overseeing the financial activities of the entire company or organization.

(c) "Limited liability business entity" means a type of business entity that generally shields its owners from personal liability for the debts, obligations, and liabilities of the entity, or a business entity that is managed or owned in whole or in part by an entity that generally shields its owners from personal liability for the debts, obligations, and liabilities of the entity. Limited liability business entities include corporations, limited liability companies, limited liability partnerships, trusts, general partnerships and joint ventures in which one or more of the partners or parties are also limited liability business entities, and limited partnerships in which one or more of the general partners are also limited liability business entities.

(d) "Manager" has the same meaning as in RCW 25.15.006.

(e) "Member" has the same meaning as in RCW 25.15.006, except that the term only includes members of member-managed limited liability companies.

(f) "Officer" means any officer or assistant officer of a corporation, including the president, vice president, secretary, and treasurer.

(g)(i) "Responsible individual" includes any current or former officer, manager, member, partner, or trustee of a limited liability business entity with an unpaid tax warrant issued by the department.

(ii) "Responsible individual" also includes any current or former employee or other individual, but only if the individual had the responsibility or duty to remit payment of the limited liability business entity's unpaid trust fund tax liability reflected in a tax warrant issued by the department.

(iii) Whenever any taxpayer has one or more limited liability business entities as a member, manager, or partner, "responsible individual" also includes any current and former officers, members, or managers of the limited liability business entity or entities or of any other limited liability business entity involved directly in the management of the taxpayer. For purposes of this subsection (9)(g)(iii), "taxpayer" means a limited liability business entity with an unpaid tax warrant issued against it by the department.

(h) "Trust fund taxes" means taxes collected from purchasers and held in trust under RCW 82.08.050, including taxes imposed under RCW 82.08.020, 82.08.150, ((and)) 82.51.010, and section 2 of this act.

(i) "Willfully fails to pay or to cause to be paid" means that the failure was the result of an intentional, conscious, and voluntary course of action.

NEW SECTION. Sec. 6. Sections 1 through 4 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 7. RCW 82.32.805 and 82.32.808 do not apply to this act.

NEW SECTION. Sec. 8. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 9. This act takes effect January 1, 2026.

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