PHOENIX — Arizona lawmakers are moving to make the purchase of guns a bit more affordable.
By a 6-4 margin, the House Ways and Means Committee voted Wednesday to exempt the sale of firearms from the state's 5.6% sales tax. Cities also wouldn't be allowed to tax those sales under the bill, House Bill 2166.
"It's my view that firearms should not be out of reach of anyone based on income,'' Rep. Steve Kaiser, R-Phoenix, told colleagues. "It should be as affordable as possible.''
Also exempt from taxes would be the sale of safety accessories, ranging from gun safes or cases to certain interlocks to prevent a weapon from being fired unless first deactivated by someone who is supposed to have access.
Kaiser said his bill also would end the financial disadvantage of firearms dealers.
"As you know, we have the private sale option in Arizona, which means you can go to a gun show, for example, and buy a private weapon from a private citizen,'' he said. "That's something I will always protect.''
But that private seller, Kaiser said, is not required to charge state or local sales taxes. All totaled, he said, those levies can add 10% or more to the out-the-door price.
"This would actually encourage more folks to go to gun stores,'' he said. "They can support our local businesses that sell firearms and firearms safety equipment.''
But the claim the exemption is justified by the ability to make tax-free person-to-person sales did not wash with Rep. Amish Shah, D-Phoenix.
"If I wanted to buy a TV out there, I could go to Best Buy. Or I could just buy it from a guy on the street,'' he said. In the latter case, he would not have to pay the sales tax.
Why, he asked Kaiser, should the sale of a new gun be exempt from sales taxes while that is not the case if he buys a new TV?
Dave Kopp, who lobbies for the Arizona Citizens Defense League, said there is precedent for the exclusion. He said existing law exempts many health and safety items from sales taxes.
"Guns certainly fall into that category,'' he testified.
Republican Gov. Doug Ducey, in closing certain retailers in 2020 at the beginning of the pandemic, exempted what he called "essential businesses," specifically including "firearm and ammunition suppliers and retailers for the purpose of safety and security," Kopp noted.
Committee Democrats were unconvinced.
"I don't see guns as essential to life,'' said Rep. Pamela Powers Hannley, D-Tucson. "And I completely disagree with the idea that more guns will save lives.''
There also were concerns about the financial aspect.
Legislative budget staffers figure the exemption when fully implemented would cut state revenues by $5.8 million from the sales of weapons themselves and another $570,000 from not taxing accessories.
That doesn't count losses to local governments who get not only a share of state sales taxes but have their own levies.
Rep. Mitzi Epstein, D-Tempe, said she believes the best form of taxes is one applied to as many items as possible "so we can have a lower rate.'' This goes in the opposite direction, she said.
The bill now requires a vote of the full House.
