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Senate Vies to Reform Firearms and Ammunition Tax

Montana’s senior U.S. Senator Max Baucus (D) and Idaho Senator Mike Crapo (R), co-chairmen of the Congressional Sportsmen's Caucus, have introduced legislation that would make it easier for gun manufacturers to file their taxes. The bill entitled "The Firearms Fairness and Affordability Act" seeks to rectify inequity in the collection of the firearms and ammunition excise tax (FAET) which is a major source of hunter education and wildlife conservation funding.

The firearm and ammunition industry pay a federal excise tax of 11 percent on long guns and ammunition and 10 percent on handguns.  This tax is collected by the U.S. Treasury, Tax and Trade Bureau and given to the U.S. Fish and Wildlife Service where it is deposited into the Wildlife Restoration Trust Fund, commonly referred to as the Pittman-Robertson Trust Fund.  The tax goes toward hunter education programs, wildlife enhancement, and increased access to public lands.

Firearms and ammunition manufacturers are currently required to pay the FAET bi-weekly, however, the new bill (S. 3331) would allow the excise taxes to be paid quarterly like all other industries. Under the current system, manufacturers spend thousands of hours administering the biweekly paperwork and many manufacturers are compelled to borrow money, while waiting on customer payments,  to ensure timely payments. This legislation will not lower the amount of conservation dollars collected by the tax.

“I’m an avid supporter of the second amendment. My legislation will help cut bureaucratic red tape and help the firearm industry save resources,” says Sen. Baucus. “At the same time this bill will help preserve our outdoor heritage. This is a good bill and I’ll work together with my colleagues to get this passed.”

A companion bill, H.R. 6310, was introduced in the U.S. House of Representatives last month.