11 % federal excise tax

10ring

December 30, 2011 04:48

I was reading on Palmetto's site that there is an 11% Federal tax on AR lowers and parts. Is this a new tax? or, Has it just usually been rolled into the price of the items?

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  TWalker

  December 30, 2011 05:05

  I believe that is the longstanding federal tax that is charged on all newly manufactured guns and ammo. It is a hidden tax normally added to the cost of the product that the buyer never sees.

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  victorj19

  December 30, 2011 06:21

  I'm not sure about the percentage but the hidden tax is called the Pittman Robertsman Fund and is applied to all fishing, hunting and shooting items (don't believe it is applied to clothing but could be wrong). The tax was established in the 1950s or earlier. The proceeds are earmarked for hunting and fishing projects and might be redistributed to the states to spend.

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  nmyers

  December 30, 2011 07:04

  My understanding is that the FET on firearms is paid only on complete firearms. The only real savings most folks get when they assemble an AR-type rifle is NOT having to pay that 11%, since it isn't paid on receivers or parts.
  
  I'm not aware that this law has changed. If so, I'd like to see documentation. Especially since it sounds like only 1 dealer is charging it, at this point.
  
  Neal
  
  "Show it to me in black-and-white, & I'll take your word for it."

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  llama

  December 30, 2011 08:06

  quote:Originally posted by victorj19
  I'm not sure about the percentage but the hidden tax is called the Pittman Robertsman Fund and is applied to all fishing, hunting and shooting items (don't believe it is applied to clothing but could be wrong). The tax was established in the 1950s or earlier. The proceeds are earmarked for hunting and fishing projects and might be redistributed to the states to spend.
  
  
  Also some camping equipment and archery equipment. It is these funds that pay for public shooting ranges in the national forrests, maintaining the wild life management areas, buying more lands for the forrests, etc. A tax I'm happy to pay.
  
  IIRC a stripped lower isn't subject to the tax...
  
  Again, IIRC, the PR fund/tax was established in the 1920s ...

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  JIM STARK

  December 31, 2011 05:02

  IIRC...A non-licensee may "Build" (manufacture) only one firearm in a 12 month period??? additinal firearms manufactured would require a "manufacturer's license" and payment of the tax...
  JIM...................

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