Explore The NRA Universe Of Websites

APPEARS IN News

Seattle’s Gun Tax: A Textbook Case on the Law of Inverse Consequences

Monday, March 27, 2023

Seattle’s Gun Tax: A Textbook Case on the Law of Inverse Consequences

The law of inverse or unintended consequences refers to outcomes that are the reverse of the planned or expected results. As described in another context, “the law of unintended consequences could create a perverse effect contrary to what was originally intended and ultimately making the problem worse.”

Back in 2015, Pete Holmes, the then City Attorney, wrote about Seattle’s “inventive” new way to address violent crime. “In a Seattle summer marred by random gunfire, the City Council unanimously approved, and Mayor Ed Murray signed, the ordinance that, come January [2016], will levy a $25 tax on businesses for each firearm sold at retail within City limits to provide a sustained local revenue source for research and prevention programs. In addition, the City will impose a 2-cent tax for every round of .22 caliber ammunition sold and a 5-cent tax for every other round of ammunition sold.” Describing this so-called “common sense step designed to reduce gun violence,” Holmes said, “This City acted to control its own destiny.”

At the time the ordinance was passed, the City Budget Office estimated that the gun tax would generate revenue of “between $300,000 and $500,000 a year.”

Seattle Police Department data on crime shows there were 3,830 violent crime incidents in 2015, of which 26 were homicides. Violent crime incidents have increased each year since, reaching 5,630 in 2022 (including 52 homicides). The department’s most recent  annual report reveals that Seattle’s overall violent crime rate reached a 15-year high in 2022, with homicides up by 24% and aggravated assaults (including shots fired and non-fatal shootings) “continu[ing] to be the highest reported in the last 10 years.”

Analyzing the numbers for shootings and shots fired specifically, police data for 2015 indicates there were 54 “shots fired” incidents, 16 shootings (nonfatal) and no shooting fatalities. By 2022, this had climbed to 79 “shots fired” incidents, 34 non-fatal shootings, and six “fatal injury” shootings. So far, 2023 looks to be at least as violent, with 84 “shots fired” incidents, 15 non-fatal injury shootings, and four fatalities already, a scant three months into the year.

Residents who may have looked to console themselves with what, by now, was supposed to be a multi-million dollar stash of cash generated by the gun tax for prevention programs were in for another rude shock. According to one source, the first full year of gun tax collection yielded just $103,766, with $93,220 collected for 2017, $77,518 in 2018, and $85,352 in 2019 – a  four-year total that failed to reach the midpoint, even, of the city’s predicted revenue for a single year.

To get the real financial impact of the gun tax, though, Seattle’s extreme overestimates have to be viewed in the larger context of actual lost revenues. At the time the gun tax was proposed, the proprietor of one of Seattle’s gun stores described what he called the city’s “grossly unsound” reasoning and revenue projections. Seattle, he added, had only two dedicated gun stores, plus a few big box sporting goods stores and pawnshops, but had “plenty more” located a short way out of the city. Rather than “just tighten the belt and hand over the money,” consumers would shop elsewhere and “Seattle gun stores would simply go out of business.” The result? No gun tax income and the city would lose the sales tax, other revenue and jobs the businesses had been generating until then. In his case – because he moved his business to the suburbs outside Seattle when the gun tax was passed – Seattle lost close to $64,000 in sales taxes that his business paid in his new location in 2017.

Another large gun retailer, the owner of Seattle’s Outdoor Emporium, was interviewed in late 2016 and blamed the gun tax for his “$2 million hit” in lost sales, a 32% drop in his customer count, and an estimated $600,000 loss of potential sales tax due to his plummeting sales.

If these figures are accurate, Seattle accomplished the unbelievable financial equivalent of cutting off its nose to spite its face by collecting, in 2016, a little over $100K in gun tax revenue but losing at least seven times as much in sales tax dollars alone. Driving these figures even further into the red, in 2017 the city reportedly spent more on defending a failed lawsuit on the tax (over its refusal to disclose the 2016 revenue collected) than it obtained that year in total gun tax income.    

It’s not just a case of the usual wonky progressive math. Civic politicians have hurt city taxpayers, to be sure, but taking “control” of the city’s destiny with this “inventive” ordinance has correlated with violent crime rates reaching record highs. The same ordinance has created an uncompetitive business climate for gun retailers, so residents who need the means to protect themselves and their families from the burgeoning crime wave are forced to go outside Seattle. Even apart from the gigantic question mark on how the gun tax revenues have been spent and to what end, it’s difficult to interpret these outcomes as anything other than a complete and dismal failure.

IN THIS ARTICLE
Washington Gun Tax Seattle
TRENDING NOW
Virginia: Semi-Auto Ban Heads to Governor Spanberger's Desk

Monday, March 9, 2026

Virginia: Semi-Auto Ban Heads to Governor Spanberger's Desk

Yet another piece of anti-gun legislation has made it out of the General Assembly and is on its way to Governor Spanberger.

Virginia: Anti-Gun Bills Headed to the Governor

News  

Sunday, March 8, 2026

Virginia: Anti-Gun Bills Headed to the Governor

As the 2026 General Assembly enters the final week of the 2026 legislative session, anti-gun lawmakers continue their push to radically change your Second Amendment rights in the Commonwealth. This week four anti-gun bills, SB ...

By George! Washington, D.C.’s Magazine Ban Invalidated by District’s Highest Court

News  

Monday, March 9, 2026

By George! Washington, D.C.’s Magazine Ban Invalidated by District’s Highest Court

Even as its formerly more liberty-loving neighbor, Virginia, goes down the tyrannical path of unconstitutional bans on firearms and magazines, residents of the nation’s capital last week gained a measure of relief from the District’s ...

Minnesota: Onslaught of Gun Control Bills Scheduled for Friday

Wednesday, March 11, 2026

Minnesota: Onslaught of Gun Control Bills Scheduled for Friday

On Friday, March 13th, the Senate Judiciary and Public Safety Committee will hold a hearing on the gun grabbers wish list, including semi-automatic bans, magazine capacity limits, and concealed carry restrictions. Please contact members of ...

The Incremental Assault on the Second Amendment Continues in the States

News  

Monday, March 9, 2026

The Incremental Assault on the Second Amendment Continues in the States

State “assault weapons” ban legislation continues to gain traction in various jurisdictions this legislative session.

Letitia James & Co. Sue to Bring Federal Gun Control Back from the Dead

News  

Monday, March 9, 2026

Letitia James & Co. Sue to Bring Federal Gun Control Back from the Dead

How times have changed. A little over a year ago, the most anti-Second Amendment President ever and his executive branch’s gun control agenda “had gun owners under siege on all fronts.” 

Michigan: Constitutional Carry Legislation Introduced

Thursday, March 5, 2026

Michigan: Constitutional Carry Legislation Introduced

A package of pro-Second Amendment legislation has been introduced in the Michigan House. House Bills 5653–5657 would make Michigan the 30th state in the nation to recognize Constitutional Carry, allowing individuals who are legally permitted ...

Virginia: Gun Bill Updates As Crossover Deadline Arrives

Tuesday, February 17, 2026

Virginia: Gun Bill Updates As Crossover Deadline Arrives

Today, February 17th is the legislative crossover deadline in Virginia, and any bills that have not left their chamber of origin by the end of the day are considered dead for the session.

Supreme Court Holds Oral Arguments in Marijuana Related Firearm Prohibition Case

News  

Monday, March 9, 2026

Supreme Court Holds Oral Arguments in Marijuana Related Firearm Prohibition Case

On March 2, the U.S. Supreme Court held oral arguments in U.S. v Hemani, a case concerning the federal firearm prohibition on marijuana users. 

Senator Mike Lee Introduces National Constitutional Carry Act

News  

Friday, March 6, 2026

Senator Mike Lee Introduces National Constitutional Carry Act

Earlier this week, Senator Mike Lee (R-UT) introduced S. 4013, the National Constitutional Carry Act. This legislation would prohibit states from imposing any criminal or civil penalty on U.S. citizens for carrying a firearm in public. ...

MORE TRENDING +
LESS TRENDING -

More Like This From Around The NRA

NRA ILA

Established in 1975, the Institute for Legislative Action (ILA) is the "lobbying" arm of the National Rifle Association of America. ILA is responsible for preserving the right of all law-abiding individuals in the legislative, political, and legal arenas, to purchase, possess and use firearms for legitimate purposes as guaranteed by the Second Amendment to the U.S. Constitution.