Federal Gift Shop Tax Act

# Federal Gift Shop Tax Act (HR 3650) - Summary **What the Bill Would Do** This bill, sponsored by Delegate Eleanor Holmes Norton of Washington D.C., would impose taxes on sales made at federal gift shops. Currently, these gift shops—located at museums, national parks, federal buildings, and other government facilities—operate with special tax exemptions. The bill would change that by subjecting their merchandise sales to applicable taxes, similar to retail shops in the private sector. **Who It Affects & Key Provisions** The bill would primarily affect visitors purchasing souvenirs and merchandise at federal facilities, who would pay taxes on these purchases.

Federal gift shops at places like the Smithsonian museums, national monuments, and other government sites would be required to collect and remit taxes. The specific tax rates and implementation details would follow existing state and local tax codes where these shops operate. **Current Status** As of now, the bill is in committee and has not yet been voted on by the full House of Representatives. The bill has not advanced to a floor vote, meaning it remains in the early legislative stage.