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New 6.5% excise tax impacts gun stores in Colorado Springs

Posted 12:26 AM, Apr 03, 2025

COLORADO SPRINGS — Small gun store owners in Colorado Springs say they are already feeling the impact of a new excise tax in Colorado.

More than half of voters passed Proposition KK in November, which imposes the 6.5% excise tax on gun sellers and manufacturers for the following:

  • ammunition
  • guns
  • gun parts

WATCH: Split opinions on the passing of Proposition KK

The measure will create money to support mental health services for the following:

  • veterans
  • domestic violence victims
  • school safety programs

The new excise tax started on April 1.
"The previous two weeks, it has been the busiest we've seen since COVID," said Justin Green, CEO and Owner of SDS Guns.

Green says that many people who wanted to purchase firearms before the excise tax came into effect came to the store. He's seen more upset customers.

"He (a customer) was upset that he didn't close his transaction prior to the excise tax coming into effect," said Green.

He says he has to charge people for the excise tax.

"We are a very low margin, low profit margin industry. Because of that, consumers have a wide variety of options to shop around. With the new legislation, there's not much way to avoid that," said Green.

A local gun owner, Ethan Jeffers, says he understands the importance of supporting mental health services. However, he says it's going to start to hurt many gun owners and businesses.

"It doesn't help anyone at the end of the day, especially when you can go across state borders and get a cheaper gun," said Jeffers.

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