H.R. 3650 (119th)Bill Overview

Federal Gift Shop Tax Act

Taxation|Taxation
Cosponsors
Support
Democratic
Introduced
May 29, 2025
Discussions
Bill Text
Current stageCommittee

Referred to the House Committee on the Judiciary.

Introduced
Committee
Floor
President
Law
Congressional Activities
01 · The brief
Plain-English summaryWhat this bill actually does

The bill authorizes States and territories to impose a sales tax on qualifying purchases from any gift shop located on Federal property, including in-person and online purchases through those gift shops. It defines "Federal property," "qualifying purchase," and "State" broadly, but does not detail collection, remittance, or enforcement mechanisms.

Why people may split

Revenue and parity vs. tax burden on visitors and vendors

Watch point

Relative to its intended legislative type, this bill is a narrowly focused substantive policy change that clearly states its purpose but provides minimal procedural, fiscal, or enforcement detail.

The bill authorizes States and territories to impose a sales tax on qualifying purchases from any gift shop located on Federal property, including in-person and online purchases through those gift shops.

It defines "Federal property," "qualifying purchase," and "State" broadly, but does not detail collection, remittance, or enforcement mechanisms.

Passage35/100

Modest, narrowly targeted change with limited fiscal impact but lacking implementation detail and facing federalism/legal questions.

CredibilityMisaligned

Relative to its intended legislative type, this bill is a narrowly focused substantive policy change that clearly states its purpose but provides minimal procedural, fiscal, or enforcement detail. It establishes an authorization for States to tax purchases at gift shops on Federal property and supplies basic definitions, but lacks implementation mechanics, integration with existing federal law, fiscal analysis, edge-case handling, and accountability provisions.

Contention65/100

Revenue and parity vs. tax burden on visitors and vendors

02 · What it does

Who stands to gain, and who may push back.

Likely benefits vs burdens50% / 50%
Local governments · Federal agenciesFederal agencies · Consumers

These are examples from the analysis, not a ranked list of the most-affected groups.

Likely helped
  • Local governmentsIncreases state and local sales tax revenue from purchases at federal-property gift shops.
  • Federal agenciesCreates parity between gift shops on federal property and off-site retailers regarding sales taxation.
  • Local governmentsPotentially funds state and local services or cultural programs through additional tax receipts.
Likely burdened
  • Federal agenciesImposes administrative and compliance burdens on federal gift shops required to collect and remit taxes.
  • ConsumersMay raise consumer prices in gift shops, reducing visitor purchases and possibly lowering overall sales.
  • Federal agenciesCreates legal uncertainties about taxation on federal property and invites potential constitutional challenges.
03 · Why people split

Why the argument around this bill splits.

Revenue and parity vs. tax burden on visitors and vendors
Progressive75%

Generally supportive because the bill allows local jurisdictions to raise revenue from commercial activity on federal lands and institutions.

Sees this as closing a gap where visitors currently buy goods tax-free, promoting parity with private retailers and supporting public services.

Leans supportive
Centrist60%

Cautiously open to the idea if implementation details are clarified.

Sees reasonable merits in revenue and parity but wants clear rules about collection, interstate sales, federal‑state coordination, and administrative costs.

Split reaction
Conservative25%

Leans toward opposition because it facilitates more taxation and regulatory burden on commerce tied to federal property.

Worried about new taxes, compliance costs, and potential interference with efficient operation of federal institutions.

Likely resistant
04 · Can it pass?

The path through Congress.

Introduced

Reached or meaningfully advanced

Committee

Reached or meaningfully advanced

Floor

Still ahead

President

Still ahead

Law

Still ahead

Passage likelihood35/100

Modest, narrowly targeted change with limited fiscal impact but lacking implementation detail and facing federalism/legal questions.

Scope and complexity
24%
Scopenarrow
24%
Complexitylow
Why this could stall
  • No mechanism for collection and remittance specified
  • Absence of cost estimates or federal budget note
05 · Recent votes

Recent votes on the bill.

No vote history yet

The bill has not accumulated any surfaced votes yet.

06 · Go deeper

Go deeper than the headline read.

Included on this page

Revenue and parity vs. tax burden on visitors and vendors

Modest, narrowly targeted change with limited fiscal impact but lacking implementation detail and facing federalism/legal questions.

Unlocked analysis

Relative to its intended legislative type, this bill is a narrowly focused substantive policy change that clearly states its purpose but provides minimal procedural, fiscal, or enforcement detail. It establishes an auth…

Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.

Perspective breakdownsPassage barriersLegislative design reviewStakeholder impact map
Open full analysis