By Jen Schumann | Contributor, Rocky Mountain Voice
Proposition KK has turned Colorado’s gun stores like Jerry’s Outdoor Sports into the front line of a battle over 2nd Amendment rights.
Tim Holt, owner of Jerry’s Outdoor Sports, is speaking out. He argues Proposition KK targets the wallets of responsible gun owners and threatens small businesses.
If Prop. KK passes, a 6.5% excise tax will be added to firearm and ammo sales. It would tax manufacturers, dealers, retailers and ammo vendors. The stated goal appearing in Colorado’s Blue Book is to raise $39 million a year for victim services, mental health and school safety.
Proponents say the tax is vital for public services. Critics say it’s adding more unfair burdens on lawful gun owners.
For Holt, Prop. KK is another restriction hitting small, family-owned businesses hard.
“We’re already hammered,” he says. Jerry’s Outdoor Sports has long been a go-to for hunters flying into Colorado for the season. Many of them used to rely on Holt’s store for firearms, optics and ammunition. “We used to have people coming in from Montana, dropping $10,000 to $15,000 because there were four or five of them, all here to hunt.”
After Gov. Polis signed House Bill 23-1219 in 2023, gun buyers now face a three-day waiting period after their background check.
Holt’s business has taken a huge hit with the loss of longtime, out-of-state customers. Hunters arriving on a Thursday and ready to buy are now forced to wait until Sunday, when the store is closed. “They just look at us and ask, ‘What are we supposed to do?,’” Holt says, explaining how the delay disrupts hunting plans and deters spending that could otherwise boost local businesses. “We’ve lost a lot of business because of that three-day wait,” he adds.
Holt also foresees a problem with Proposition KK: its 6.5% tax rate won’t last. “They say it’ll be 6.5%, but I wouldn’t be surprised if it creeps up to 12% or more. That’s how it usually goes,” he warns.
Holt believes Prop. KK will intensify competition between small gun shops and large retail chains. Big retailers can negotiate bulk discounts. Smaller shops, like Jerry’s, can’t match these advantages.
“The big stores can absorb these fees and restrictions a lot easier. It’s a major hit for us,” Holt explains. He notes that the new taxes could drive customers to larger or out-of-state retailers.
Holt’s challenges go beyond competition and taxes. This year, Facebook permanently removed Jerry’s Outdoor Sports’ business page — built up over years with over 10,000 followers — because of posts about firearms that fully complied with the platform’s policy for brick-and-mortar stores.
“We followed their policies to the letter, but they just kept flagging us until they took us down for good,” Holt recalls. To him, the removal shows how social media rules hurt small businesses trying to reach their local communities.
Federal regulations have also caused problems. The ATF strictly monitors gun stores like Holt’s. It flags even minor clerical errors as violations. “They mark violations for things like someone printing their name where they should have signed. It’s relentless,” Holt shares.
Holt now faces a new requirement for a Colorado firearms license, in addition to federal oversight. It mirrors the federal license, but has extra fees and training. “The state’s creating its own version of the federal firearms license, which we’re already paying for. It’s completely unnecessary and costly,” he says.
Holt worries that dual licensing may let the state impose stricter rules on firearms dealers. This could add complexity and costs without improving safety. “We now have both the ATF and the state coming after us, and for what? It’s more paperwork and higher costs just to stay in business,” he adds.
Ian Escalante, executive director of Rocky Mountain Gun Owners, shares Holt’s concerns. The Colorado nonprofit defends 2nd Amendment rights with more than 200,000 members. Escalante warns that Prop. KK is the start of a broader effort to discourage gun ownership. “People need to understand the ballot’s deceptive language,” Escalante says. He notes that, with local sales taxes, the total tax on a firearm might reach 30% of its purchase price. This includes an 11% federal excise tax and other added fees.
Escalante calls recent state permitting requirements “just another hidden tax on owning a gun shop.” He added that “the Department of Revenue is authorized to raise [the permit cost] by 25% every single year.” This could make it harder for gun stores to stay afloat.
For Escalante, Prop. KK is a new threat to a crime-ridden, gang-plagued state. “Not only is it going to discourage people from buying firearms, but it’s going to make it so the only firearms they can purchase are the cheaply foreign-made firearms that are genuinely unsafe,” he says.
Holt and Escalante have a message for Colorado voters: stay informed, understand the long-term effects of Prop. KK, and vote. “People don’t understand what’s happening locally. They’re missing these critical changes,” Holt says. “This isn’t just about taxes. It’s about preserving our 2nd Amendment rights and keeping small businesses alive. Coloradans need to know what’s on the ballot and they need to vote.”