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
U.S. Department of Justice Declares Age 18-20 Handgun Sales Ban Unconstitutional

News  

Wednesday, September 23, 2026

U.S. Department of Justice Declares Age 18-20 Handgun Sales Ban Unconstitutional

On September 17, the Department of Justice’s Office of Legal Counsel (OLC) issued a memorandum opinion to answer the question “whether restricting young adults from buying firearms comports with the Second Amendment as the Supreme ...

“Law abiding citizens with an AR-15 are not a threat to anyone” — Law Enforcement Groups Weigh in on Supreme Court “Assault Weapons” Cases

News  

Wednesday, September 23, 2026

“Law abiding citizens with an AR-15 are not a threat to anyone” — Law Enforcement Groups Weigh in on Supreme Court “Assault Weapons” Cases

The Trace, the “newsroom” funded by anti-gun extremist Michael Bloomberg, reported in June on the extent to which the NRA-backed NYSRPA v. Bruen case has, to date, rebuilt the modern Second Amendment landscape.

Trump DOJ Sues San Jose, Ca., Over $1,600 Concealed Carry Licensing Fee

News  

Wednesday, September 23, 2026

Trump DOJ Sues San Jose, Ca., Over $1,600 Concealed Carry Licensing Fee

Do you know the way to San Jose? Dionne Warwick famously asked in her 1968 hit song. Well, Assistant U.S. Attorney General Harmeet Dhillon certainly does, and she recently made sure the city was served ...

Everytown Goes Hunting for Credibility

News  

Wednesday, September 23, 2026

Everytown Goes Hunting for Credibility

The irony is nothing short of comedy. Multiple outlets are having a field day with the Michael Bloomberg-backed Everytown organization, which has spent years and millions of dollars supporting extreme restrictions on lawful gun ownership, ...

Jive Turkeys: Everytown Gears Up to Spoil Thanksgiving with Gobbledygook

News  

Monday, November 17, 2025

Jive Turkeys: Everytown Gears Up to Spoil Thanksgiving with Gobbledygook

Thanksgiving in America isn’t just about food, family and football. According to a survey published by casino.ca (with its Great Thanksgiving Family Feud Map), the holiday typically “comes with a slice of family chaos and a touch of ...

Study Suggests “Safe Storage” Mandates are Ineffective

News  

Wednesday, September 23, 2026

Study Suggests “Safe Storage” Mandates are Ineffective

While it likely comes as no surprise to most readers, a recent study suggests that government-mandates that law-abiding gun owners always secure their firearms when “not in use”—usually unloaded, separate from ammunition, and either in ...

Federal Court Strikes Down NFA Registration Requirements for Suppressors, Short-Barreled Rifles, and Short-Barreled Shotguns in NRA Case

Wednesday, August 5, 2026

Federal Court Strikes Down NFA Registration Requirements for Suppressors, Short-Barreled Rifles, and Short-Barreled Shotguns in NRA Case

In another major victory for the National Rifle Association and law-abiding gun owners, the U.S. District Court for the Northern District of Texas today held that the National Firearms Act’s registration and approval requirements for ...

The Fight to Protect the Firearms Industry Continues

News  

Wednesday, September 23, 2026

The Fight to Protect the Firearms Industry Continues

The political lawfare campaign to dismantle the lawful firearms industry by holding it liable for the criminal misuse of its constitutionally protected products should have never started. U.S. tort law has long held that a ...

Questions and Answers About the Texas NFA Case

News  

Monday, August 17, 2026

Questions and Answers About the Texas NFA Case

On August 12, we reported on an important development in the ongoing litigation over the National Firearms Act (NFA) filed by multiple plaintiffs in U.S. District Court for the Northern District of Texas. These included, ...

NRA Files Amicus Brief Urging SCOTUS to Hear Challenge to Maine’s 72-Hour Waiting Period Law

Thursday, September 24, 2026

NRA Files Amicus Brief Urging SCOTUS to Hear Challenge to Maine’s 72-Hour Waiting Period Law

The National Rifle Association and Second Amendment Foundation filed an amicus brief urging the U.S. Supreme Court to grant review in Beckwith v. Frey, a challenge to Maine’s 72-hour waiting period requirement for firearm purchases.

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.