I knew there were taxes on these at the manufacturing level but had never heard what the rates were. The federal excise tax on long guns and ammo is 11%. On handguns 10%.
Firearms and ammunition manufacturers reported federal excise tax obligations to be $122 million in the second calendar quarter of 2009, up 52 percent compared to the same period a year ago, according to data from the Department of the Treasury. The increase follows a 43 percent increase in excise tax obligations reported during the previous quarter. Manufacturers pay the federal excise tax -- a major source of wildlife conservation funding -- on all firearms and ammunition manufactured
Between April 1 and June 30, $33.5 million was due in taxes for pistols and revolvers, $42.3 million for long guns and $46.1 million for ammunition. Compared to the same quarter in 2008, excise tax obligations were up 44.4 percent for handguns, 51.3 percent for long guns and 57.5 percent for ammunition. Using the latest collections as an indication of sales, a projection of $1.14 billion was generated in the second quarter. Though excise taxes are one of the best indicators of industry performance, they only reflect what excise taxes the manufacturers have filed and do not reflect retail mark-up and final retail sales.
Thanks for the info. there Don. I was under the impression that the excise tax on long guns was 10%. 11% makes my next comment even more important.
The excise tax on firearms is one reason I and many others have purchased their AR 15's as parts rather than as complete guns. One gets the most tax savings by buying the stripped lower reciever by itself, since it is the only part subject to the excise tax.
It makes more sense to me to pay tax on a $150 stripped lower than on a $1000 rifle.
As a side note, I did purchase the upper as a complete assembly, since I'm not exactly a gun smith. ;)
The nice thing about buying an AR in parts is also you can pick and choose components as our son did. He wanted a particular barrel and a particular lower and upper, not to mention nearly everything else. Add to that the possibility of stockpiling an extra lower or two as "trade goods" if the government ever gets into a ban on sales again.
Quote from: MountainDon on November 06, 2009, 04:53:42 PM
The nice thing about buying an AR in parts is also you can pick and choose components as our son did. He wanted a particular barrel and a particular lower and upper, not to mention nearly everything else. Add to that the possibility of stockpiling an extra lower or two as "trade goods" if the government ever gets into a ban on sales again.
Face to face transfers:
Federal tax=0.00
State Tax=0.00
Local Tax=0.00
Home built receivers:
Federal tax=0.00
State Tax=0.00
Local Tax=0.00
Total Firearms Tax paid over the last ten years:
$ 0.00 heh
Oh My, I forgot ammo ::)
Cast bullets= 0.00
Private purchase Brass=0.00
Surplus Powder=0.00
Total=
$ 00000000000000000000000000000000000000000000000000000000000000000000000000000000000.00 ;D ;D ;D ;D ;D ;D