Federal Excise Tax
Can anyone enlighten me on the FET when it comes to firearms? I am in the process of ordering two stripped AR15 lowers from a dealer that has not been in business long and he is checking with the ATF to see if he needs to collect the tax. I was under the impression that he does not, that it would be up to me to pay the tax if I built a gun from the lower. And really only if I intended to build a complete rifle to resell to someone else.
It also makes me wonder if the FET isn't paid by someone like J&T or DPMS if I buy a complete kit (minus lower) where the upper is already assembled. In their catalogs they show completely unassembled kits (minus lower) and they denote no FET.
GL
It also makes me wonder if the FET isn't paid by someone like J&T or DPMS if I buy a complete kit (minus lower) where the upper is already assembled. In their catalogs they show completely unassembled kits (minus lower) and they denote no FET.
GL
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I wasn't aware of a FET on firearms from dealer to a private party - just the possibility of sales tax. Of course I have only "visiting rights" to the experts forum. I'll be interested to see other posts.
cbxjeff<P>It's too late for me, save yourself. <br>0 -
I've never seen documentation on how the FET works, but it seems to me that I read that it (a 10% tax on the list price of complete firearms) is paid by the manufacturer. So, if a firearm is sold to a LEA or to an LEO, the distributor or dealer would be able to get a refund of the FET from the Dept of the Treasury. I don't see any other way this could work, as neither the manufacturer nor the distributor has any way to know (or verify) that the customer will be eligible for a tax exemption.
The receiver, when sold by itself, is not subject to the FET; that is why this tax savings is the main place that you save money when assembling a firearm from parts. No tax is due when the gun is assembled, & there is no system in place that would permit this to be tracked.
Neal0 -
While we are talkng about it, isn't this FET the basis for a piece sold originally to a LEO and traded or sold back to a dealer never going to a private individual? A couple of years ago I bought a Colt AR that was originally sold to the Speedway Police Dept. My dealer, who had sold the ARs originally and now were being traded for M-16s told me that if the original sale had not involved a FET payment he could never have resold the AR's to the general public.
cbxjeff<P>It's too late for me, save yourself. <br>0 -
I can realize his concern. He's been in business about 2-3 months now and I suppose this is the first time he's sold any stripped lowers and wants to have his I's dotted and T's crossed.
Even more interesting is that Lauer Custom Weaponry won't sell any of their own stripped lowers out of their retail shop because of the same "reason", more or less. I would think that they are a type 07 as stated and therefore would be paying the FET themselves, however, after listening to the dolt behind their counter explain why Lauer guns were the best thing since sliced bread, they could have been blowing smoke up my @ss for an entirely different reason.0 -
green lantern,
If you are ordering the receivers, and paying the manufacturer / distributor for them. Your FFL dealer only charges you a transfer fee. There would be no taxes, because YOU already own the receivers.
Basically you are paying the FFL TO TRANSFER YOUR OWN PROPERTY TO YOU.
It is better to be judged by 12 than carried by 6.0
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