Ohio bill would eliminate sales tax for guns and ammunition

Yahoo

07-03-2025

COLUMBUS, Ohio (WCMH) – Ohio Senators have introduced legislation that would eliminate sales tax for guns and ammunition, while establishing a tax credit for firearm manufacturers in the state.
The sponsors of Senate Bill 59, Sens. Al Cutrona (R-Canfield) and Tim Schaffer (R-Lancaster), claim Ohio is losing out on gun sales due to buyers traveling to neighboring tax-free states.
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'In 2021, similar language was adopted into law in the state of West Virginia, highlighting the necessity of this legislation; to ensure that Ohioans support Ohio businesses,' Schaffer said at an introductory hearing for the bill.
Currently, West Virginia is the only state neighboring Ohio that has adopted a sales tax exemption for gun and ammunition purchases. Guns in Alaska, Delaware, Montana, New Hampshire and Oregon are also sales tax free since these states do not collect sales tax at all. It is legal to buy a gun in one state and take it to another, as long as the transaction is legal in both states, according to the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If the bill were to pass, Ohio's sales tax exemption would specifically apply to any non-shotgun firearm that is .50 caliber or smaller, and any shotgun that is 10 gauge or smaller, according to Schaffer. Ammunition for such firearms would also qualify.
The measure, introduced in January, would also establish a tax credit capped at $10 million per fiscal year for firearms and ammunition manufacturers that either plan on moving to Ohio or are expanding an existing facility.
'The intent behind this bill is to protect our Second Amendment and remove the burdensome nature of taxes,' Cutrona said. 'Additionally, this is a jobs bill and will create more opportunities for Ohioans. Ohio is open for business and I look forward to the positive impact this legislation will have on our economy.'
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The tax credit, called the 'Constitutional Commerce Credit,' would be administered by the state Department of Development, and awarded to businesses that make a capital investment of at least $2 million.
Companies would be eligible to receive the refundable tax credit for up to 15 years. Businesses receiving tax incentives would have to maintain operations in the state for the greater part of seven years or the term of the credit plus three years. If a business fails to comply with the rules, the Department of Development could intervene and recapture up to the full amount of the credit awarded, Cutrona said.
The pair introduced a similar bill in the last General Assembly, but it only received one hearing and did not pass by the end of the legislative session.
A spokesperson with the Ohio Council of Churches, a Christian organization fighting against gun violence, told NBC4 the group is against the bill, calling it 'morally and ethically' irresponsible.
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'According to the New England Journal of Medicine, firearms are the leading cause of death for children and adolescents in America,' a spokesperson said. 'Yet our state legislature apparently is bent on not only removing the tax on firearms sales … but actually seeks to encourage the manufacture and distribution of firearms, by bestowing tax incentives on the manufacturers.'
SB 59 was assigned to the Senate's Ways and Means Committee. It has had one introductory hearing and awaits proponent and opponent testimony.
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