Beginning April 1, 2025 the State of Colorado will impose a 6.5% excise tax on the sale of firearms, firearm precursor parts, and ammunition sold in the state.  There are limited exceptions for certain sales to government officials.  Colorado FFLs and those doing business in the State should be aware of this upcoming tax and ready their systems and recordkeeping practices to account for this new excise tax.  FFLs nationwide should be aware that several states have legislative proposals pending to implement a similar tax.

In addition to these taxing measures, there are several hundred bills actively pending that directly impact an FFL’s business; ranging from tax measures to bans on products, firearm registration matters, state licensing matters, state reporting requirements, and much more.  FFLs need to be constantly tracking pending legislation.  A new law passed in Utah can affect an FFL in South Carolina who does business over the internet.

Orchid Advisors maintains the industry’s only centralized, firearms-industry focused bill tracker in its eState software package.  The eState software also identifies what products are restricted nationwide, helping FFLs avoid sales of noncompliant products which could result in civil or criminal action.

About Orchid

Orchid is a trusted provider of cutting-edge solutions for the firearm industry, celebrating over a decade of service to the shooting sports community. Partnering with FFL Law, Orchid delivers market-leading FFL software, firearms-friendly payment processing, and regulatory services for the firearms, ammunition, and explosives sectors. Orchid’s comprehensive offerings include POS, eCommerce, the B2B Sales Portal, the Firearm Sales Portal, and compliance tools like Orchid eBound and Orchid eState. The company also excels in ERP integration, ATF compliance, import/export regulations, and state firearm law expertise. Discover more at orchidadvisors.com.