wacki
Member
There are several threads in this forum discussing the almost punitive $200 tax stamp for building your own gun, buying silencers, etc. These have made me wonder how much guns at the retail level are taxed. Anyone know?
What % of a gun is taxes?
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41magsnub
Member
As far as I know "normal" guns are not taxed any differently than any other merchandise.
Guns in CA seem to have a noticable and significant markup over the rest of the nation.
Even in Europe firearms typicaly cost more.
For example a Glock costs more in US dollars in Austria, than it does in the US.
They definately seem to be cheaper in the more firearm friendly states.
I don't know why.
Even in Europe firearms typicaly cost more.
For example a Glock costs more in US dollars in Austria, than it does in the US.
They definately seem to be cheaper in the more firearm friendly states.
I don't know why.
CDignition
Member
Excise tax is the same regardless of rifle or pistol @ 11%. Ammo also has this same tax. Other than that, its the same as socks or beef.
VARifleman
Member
Only if it's an NFA item. A non-NFA firearm that you build is not taxed.
Please remember that what is "almost punative" now at $200.00 was IMHO extremely punative back in 1934.
link http://www.westegg.com/inflation/infl.cgi
What I've never understood is how the size of the licence for the tax stamps being so much more than the cost of the item remained legal.
Obligatory IANAL.
My limited understanding is that a tax is supposed to raise money, not to control something.
It's 2:06 A.M. where I am. Tried Google for a few minutes but could not find the case I recall. I'll look it up tomorow, unless... hopefully some legal type could kindly help out.
Please, pretty please?
NukemJim
VARifleman
Member
NukemJim, another way that shows how crazy it was, is to compare 200 bucks to average income. If I remember right, it's 5 months income.
Also, the 11% is added to the price at the store, so it is compounded with sales tax. In NC for instance, with a 7 percent tax, you are paying 18.5% tax on firearms and ammo.
Also, the 11% is added to the price at the store, so it is compounded with sales tax. In NC for instance, with a 7 percent tax, you are paying 18.5% tax on firearms and ammo.
In Texas: for non-NFA items, I believe the only applicable tax is state/local sales tax, which is usually somewhere between 7.5 and 9.5%.
I could be wrong. I am not an attorney, but I did stay at a Holiday Inn Express a while back.
I could be wrong. I am not an attorney, but I did stay at a Holiday Inn Express a while back.
Art Eatman
Moderator In Memoriam
AR2A: The exise tax of 11% on firearms was brought about through lobbying efforts by hunters. The money is distributed among state wildlife agencies, pro-rated according to the number of hunting licenses sold. I didn't look up the date of passage, but I vaguely recall it was during the 1930s.
Ya gotta remember that there was a time when all this anti-gun stuff just wasn't a problem. Overall, relatively few people had handguns for self defense, as compared to today. Most gun owners were hunters.
Ya gotta remember that there was a time when all this anti-gun stuff just wasn't a problem. Overall, relatively few people had handguns for self defense, as compared to today. Most gun owners were hunters.
Mark K. C.
Member
I just bought a Sig 556 last Friday here in Washington and only paid our 7% sales tax.
Bartholomew Roberts
Member
If you bought a complete rifle, then somebody paid the federal excise tax on it at some point. Most likely you just didn't see it because it was already built into the price of the rifle.
The latest issue is that the BATF has been trying to collect the excise tax twice on custom firearms by claiming that the custom work is the same as "manufacturing a new firearm."
The NRA has H.R. 4900 to address some of these issues. Worth writing your Congresscritter about.
There is no way to ever know. The above posts address only obvious "up front" taxes. But the steel maker pays taxes on his mill, and corporate income taxes as well. The trucker who brings the steel to the gun factory pays taxes on his truck and his fuel. The power company that supplies the electricity to run the machines pays taxes and passes them on. The truck driver, the power plant workers and the gun factory workers have to be paid enough to enable them to pay income taxes and still live reasonably well. And on, and on, and on.
I recall reading that if there were no taxes, bread would cost ten cents a loaf. I suspect a gun that now sells for $600, with no taxes and no insurance set-aside would cost $20.
Jim
I recall reading that if there were no taxes, bread would cost ten cents a loaf. I suspect a gun that now sells for $600, with no taxes and no insurance set-aside would cost $20.
Jim
La Pistoletta
Member
New S&W 617 in the US: ~$650-700.
New S&W 617 in Sweden: $1500.
Standard sales tax is 25%. Handgun tax is $110. The market is artificially constricted by import fees, taxes, laws etc. Income tax is up to about 50% not including the employer's fee.
New S&W 617 in Sweden: $1500.
Standard sales tax is 25%. Handgun tax is $110. The market is artificially constricted by import fees, taxes, laws etc. Income tax is up to about 50% not including the employer's fee.
telomerase
Member
+1 on Jim Keenan, except to add that in addition to making things cost more immediately taxes also reduce the economic growth rate. If the US had grown since 1945 like Singapore, Hong Kong, Dubai, (or like the US in the 1890s), our real median income would be 5-10 times higher.... and would be growing at not less than 6% per year (one would we could do better than the 1890s, since we have computers, but we sure wouldn't do worse!).
wacki
Member
CDignition said:
What is the tax on ammo?
You have to also include the corporate taxes that the company pays to the Feds and State. Add that to the excise sax and sales tax and you're probably in the 40% - 50% range. Remember, corporate taxes are passed on to the consumer so companies can maintain the gross margins.
wacki
Member
Pilot said:
Do these taxes to apply to all goods or just guns? If they apply just to guns then maybe we should make it a major platform of ours to lower taxes on guns to be on the same level as taxes of all other products. Taxes any higher than that are punishing our ability to exercise our right. Do you have any idea where I can get more specific information? Cost is a major issue for gun ownership and sport shooting. We should be protecting our right by making it cheaper which would then encourage other people to participate in sport shooting.
Generally speaking, all for-profit corporations pay income tax. Since income tax is a charge and reduces profit, firms must raise prices in order to achieve specific margins.
Excise taxes are taxes that apply to a specific product/service. Gasoline, liquor, tobacco, and guns are just a few of the products that have excise taxes.
Do a Google search for "Laffer Curve." While it is usually taught as having to deal with personal income taxes, some texts apply it to other things.
Basically, there's an optimal income tax rate to maximize tax revenue. If you increase the rate over that optimal rate, people will start to work less, therefore reducing tax revenues. This principal can be applied to other taxes such as the tobacco excise taxes. Over the past 20 years, state excise taxes on tobacco have increased dramatically as a way to deter tobacco use. However, if the tax increased the price of a pack of cigarettes to $50, they'd collect almost no taxes since people can't afford to pay the tax.
Imagine if every new gun sold required a $1,000 excise tax or stamp tax (i.e., the $200 NFA tax stamp).
El Tejon
Member
Oh really?
No wonder politicians love taxing businesses as people think they do not pay the tax.Google "Pittman-Robinson excise tax" and see how what taxes you paid for your carbine.
VARifleman
Member
Mark K. C., you paid 11% excise tax on a firearm, 7% sales tax, 0.5% compounded tax from just those two taxes, and an unknown amount of other taxes.
Pitman act taxes are also on on archery equipment and a lot of other 'sport' equipment.
§ 4161. Imposition of tax
(a) Sport fishing equipment
(1) Imposition of tax
(A) In general
There is hereby imposed on the sale of any article of sport fishing equipment by the manufacturer, producer, or importer a tax equal to 10 percent of the price for which so sold.
(B) Limitation on tax imposed on fishing rods and poles
The tax imposed by subparagraph (A) on any fishing rod or pole shall not exceed $10.
(2) 3 percent rate of tax for electric outboard motors
In the case of an electric outboard motor, paragraph (1) shall be applied by substituting “3 percent” for “10 percent”.
(3) 3 percent rate of tax for tackle boxes
In the case of fishing tackle boxes, paragraph (1) shall be applied by substituting “3 percent” for “10 percent”.
(4) Parts or accessories sold in connection with taxable sale
In the case of any sale by the manufacturer, producer, or importer of any article of sport fishing equipment, such article shall be treated as including any parts or accessories of such article sold on or in connection therewith or with the sale thereof.
(b) Bows and arrows, etc.
(1) Bows
(A) In general
There is hereby imposed on the sale by the manufacturer, producer, or importer of any bow which has a peak draw weight of 30 pounds or more, a tax equal to 11 percent of the price for which so sold.
(B) Archery equipment
There is hereby imposed on the sale by the manufacturer, producer, or importer—
(i) of any part or accessory suitable for inclusion in or attachment to a bow described in subparagraph (A), and
(ii) of any quiver, broadhead, or point suitable for use with an arrow described in paragraph (2),
a tax equal to 11 percent of the price for which so sold.
(2) Arrows
(A) In general
There is hereby imposed on the first sale by the manufacturer, producer, or importer of any shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow which after its assembly—
(i) measures 18 inches overall or more in length, or
(ii) measures less than 18 inches overall in length but is suitable for use with a bow described in paragraph (1)(A),
a tax equal to 39 cents per shaft.
(B) Adjustment for inflation
(i) In general In the case of any calendar year beginning after 2005, the 39-cent amount specified in subparagraph (A) shall be increased by an amount equal to the product of—
(I) such amount, multiplied by
(II) the cost-of-living adjustment determined under section 1 (f)(3) for such calendar year, determined by substituting “2004” for “1992” in subparagraph (B) thereof.
(ii) Rounding If any increase determined under clause (i) is not a multiple of 1 cent, such increase shall be rounded to the nearest multiple of 1 cent.
(3) Coordination with subsection (a)
No tax shall be imposed under this subsection with respect to any article taxable under subsection (a).
§ 4161. Imposition of tax
(a) Sport fishing equipment
(1) Imposition of tax
(A) In general
There is hereby imposed on the sale of any article of sport fishing equipment by the manufacturer, producer, or importer a tax equal to 10 percent of the price for which so sold.
(B) Limitation on tax imposed on fishing rods and poles
The tax imposed by subparagraph (A) on any fishing rod or pole shall not exceed $10.
(2) 3 percent rate of tax for electric outboard motors
In the case of an electric outboard motor, paragraph (1) shall be applied by substituting “3 percent” for “10 percent”.
(3) 3 percent rate of tax for tackle boxes
In the case of fishing tackle boxes, paragraph (1) shall be applied by substituting “3 percent” for “10 percent”.
(4) Parts or accessories sold in connection with taxable sale
In the case of any sale by the manufacturer, producer, or importer of any article of sport fishing equipment, such article shall be treated as including any parts or accessories of such article sold on or in connection therewith or with the sale thereof.
(b) Bows and arrows, etc.
(1) Bows
(A) In general
There is hereby imposed on the sale by the manufacturer, producer, or importer of any bow which has a peak draw weight of 30 pounds or more, a tax equal to 11 percent of the price for which so sold.
(B) Archery equipment
There is hereby imposed on the sale by the manufacturer, producer, or importer—
(i) of any part or accessory suitable for inclusion in or attachment to a bow described in subparagraph (A), and
(ii) of any quiver, broadhead, or point suitable for use with an arrow described in paragraph (2),
a tax equal to 11 percent of the price for which so sold.
(2) Arrows
(A) In general
There is hereby imposed on the first sale by the manufacturer, producer, or importer of any shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow which after its assembly—
(i) measures 18 inches overall or more in length, or
(ii) measures less than 18 inches overall in length but is suitable for use with a bow described in paragraph (1)(A),
a tax equal to 39 cents per shaft.
(B) Adjustment for inflation
(i) In general In the case of any calendar year beginning after 2005, the 39-cent amount specified in subparagraph (A) shall be increased by an amount equal to the product of—
(I) such amount, multiplied by
(II) the cost-of-living adjustment determined under section 1 (f)(3) for such calendar year, determined by substituting “2004” for “1992” in subparagraph (B) thereof.
(ii) Rounding If any increase determined under clause (i) is not a multiple of 1 cent, such increase shall be rounded to the nearest multiple of 1 cent.
(3) Coordination with subsection (a)
No tax shall be imposed under this subsection with respect to any article taxable under subsection (a).
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