Posted: 5/29/2013 7:01:09 AM EDT
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Quick question. If XYZ gun manufacturer creates a SBR and sells it to the public, did they have to apply for a tax stamp for that firearm? Or are they allowed to create the firearm without the need for a stamp. Further, if you buy a full SBR from a manufacturer, is it "exempt" from the customer having to buy a tax stamp beforehand because the gun "came like that"?
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We have a forum dedicated to SBRs. To answer your question: my understanding is the manufacturing company doesn't pay the $200 tax for the creation of the SBR; however, when an individual purchases it from the mfr they pay the $200 transfer tax. If the SBR is transferred to a LEO agency, the ATF waives the $200 transfer fee as it's being transferred to an exempt agency. |
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Quoted:
The manufacturer does not have to pay the stamp on the gun that is covered under the SOT. A non-exempt buyer will have to pay the tax. What he said. Unless you're a LEO buying for a department, or some other branch of government, or you're a dealer or SOT, you will have to pay the $200. |
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The manufacturer does not have to pay the stamp on the gun that is covered under the SOT. A non-exempt buyer will have to pay the tax. This!! Only 1 $200 tax to You the buyer. Not one to the Seller ( manufacturer) because They are a SOT. If resold it is $200 to seller an antoher $200 for the buyer. |
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If resold it is $200 to seller an antoher $200 for the buyer. Not quite. It's two stamps if it's sold out of state. One $200 stamp to transfer from the seller to the dealer, then the dealer ships it tax free to a dealer in the buyer's state, then a $200 stamp to transfer to the buyer. Usually, the buyer will provide the funds for both stamps, one way or another. In-state, it's only one stamp, from the seller to the buyer. Many will go through a class III dealer for this, but if the item is not actually transferred to the dealer, there is no additional stamp. |
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There is a form to transfer the NFA item from the manufacturer to the dealer, another to transfer it from dealer to dealer, and the $200 tax stamp form to transfer it from a dealer to an individual/trust.
I'm unsure of the costs of the first two, but I imagine it is low or non-existent. |
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Quoted:
We have a forum dedicated to SBRs. To answer your question: my understanding is the manufacturing company doesn't pay the $200 tax for the creation of the SBR; however, when an individual purchases it from the mfr they pay the $200 transfer tax. If the SBR is transferred to a LEO agency, the ATF waives the $200 transfer fee as it's being transferred to an exempt agency. It's not a Transfer tax. it is a Tax Stamp. Transfers are "Charged" by your LGS FFL for items other then in stock / stocking inventory. Some ffls charge / over charge you the buyer by hitting you with a $50 and up Transfer Fee on items they carry. 1 did around here until folks wised up. My NFA dealers Only charge a Transfer on items i purchase they don't carry. |
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Quoted:
There is a form to transfer the NFA item from the manufacturer to the dealer, another to transfer it from dealer to dealer, and the $200 tax stamp form to transfer it from a dealer to an individual/trust. I'm unsure of the costs of the first two, but I imagine it is low or non-existent. D-D is Form 3 and that runs an average of $25-50 if you're a "regular NFA buyer" for others it runs $50 + Form 3 D-D can take 30-60 days tops. As mentioned before there is an entire forum dedicated to NFA, Suppressors SBR's etc. Under the Armory Icon. |
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Quoted:
Quick question. -If XYZ gun manufacturer creates a SBR and sells it to the public, did they have to apply for a tax stamp for that firearm? No, it is covered under their SOT. -Further, if you buy a full SBR from a manufacturer, is it "exempt" from the customer having to buy a tax stamp beforehand because the gun "came like that"? No. You still have to transfer the firearm and pay the tax. |
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Just to add...
"SOT" = Special Occupational Taxpayer It's a designation for people who deal with NFA weapons as a business. They pay a flat tax for the year, and then do not have to pay individual taxes on each item and don't have to wait for the paperwork. What you're talking about is a "Class 2 SOT," which is a manufacturer of NFA weapons. They will have an 07 or 10 FFL as well. When the manufacturer creates the weapon, they call in the serial number(s) and the weapons are added to the registry right then. There is no specific tax paid on the items at that point. When the customer buys the weapon, they must fill out the individual or trust paperwork and pay the tax. The weapon is transferred to them on a Form 4. There are NO exceptions based upon factory configuration as either a complete rifle or a stripped/partial receiver. The only tax-exempt transfers of NFA items are those to government/LE agencies, or between SOTs - For example: A manufacturer transfers the weapon to their dealer (Class 3 SOT) tax-free, but the dealer then transfers it to the buyer, who must pay the tax. |