Stop Taxing the Second Amendment Act of 2016

Summary: Stop Taxing the Second Amendment Act of 2016 This bill prohibits a state or local government from imposing a tax on a firearm or ammunition sale that affects interstate commerce. Additionally, it prohibits a state or local government from imposing a new tax or increasing an existing tax on a background check incident to a firearm or ammunition sale.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Taxing the Second Amendment Act 
of 2016''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress find the following:
            (1) The individual right to keep and bear arms protected by 
        the Second Amendment to the Constitution includes the right to 
        acquire firearms and ammunition without undue burdens.
            (2) Jurisdictions have imposed taxes or fees on the 
        acquisition of firearms and ammunition that inhibit the 
        exercise of the Second Amendment, particularly among 
        individuals of limited means.
            (3) Local taxation of firearms and ammunition suppresses 
        lawful interstate commerce that is vital to a robust Second 
        Amendment to the Constitution.
            (4) The Congress has the authority to regulate interstate 
        commerce in firearms and ammunition to ensure that States are 
        not suppressing access to these lawful products.
            (5) The singling out of firearms and ammunition for special 
        taxation as a means to suppress their acquisition is an 
        infringement of the Second Amendment and disproportionately 
        affects those in low income communities whose need for self-
        defense may be especially acute.
    (b) Purpose.--The purpose of this Act is to prevent States or local 
jurisdictions from using their taxing power to suppress lawful 
interstate commerce and protected constitutional activity.

SEC. 3. LIMITATION ON AUTHORITY TO IMPOSE STATE AND LOCAL TAXES ON 
              SALES OF CERTAIN FIREARMS AND AMMUNITION.

    No State or local government may impose a tax on the sale of 
firearms (or of any certain type of firearms) that have moved in or 
that otherwise affect interstate commerce, or on the sale of ammunition 
(or of any certain type of ammunition) that has moved in or that 
otherwise affects interstate commerce.

SEC. 4. LIMITATION ON AUTHORITY TO IMPOSE STATE AND LOCAL TAXES PAYABLE 
              FOR CONDUCTING BACKGROUND CHECKS INCIDENT TO THE SALE OF 
              FIREARMS AND AMMUNITION.

    No State or local government may--
            (1) impose a tax payable to conduct a background check 
        incident to the sale of firearms (or any certain type of 
        firearms) that have moved in or that otherwise affect 
        interstate commerce, or to the sale of ammunition (or any 
        certain type of ammunition) that has moved in or that otherwise 
        affects interstate commerce, if the respective State or local 
        government does not have in effect on the date of the enactment 
        of this Act a tax payable to conduct a background check 
        incident to the sale of firearms or ammunition, or
            (2) increase the rate of a tax imposed to conduct 
        background checks incident to the sale of firearms (or any 
        certain type of firearms) that have moved in or that otherwise 
        affect interstate commerce, or to the sale of ammunition (or 
        any certain type of ammunition) that has moved in or that 
        otherwise affects interstate commerce, in effect on the date of 
        the enactment of this Act payable to conduct such checks.

SEC. 5. DEFINITIONS.

    For purposes of this Act:
            (1) Ammunition.--The term ``ammunition'' has the meaning 
        given such term in section 921 of title 18 of the United States 
        Code.
            (2) Background check.--The term ``background check'' means 
        a check performed by the system then in effect under section 
        103 of the Brady Handgun Violence Prevention Act (18 U.S.C. 922 
        note) or pursuant to any State law that mandates an inquiry 
        into a individual's criminal, mental health, or other personal 
        history as a prerequisite to the transfer or acquisition of a 
        firearm.
            (3) Firearm.--The term ``firearm'' has the meaning given 
        such term in section 921 of title 18 of the United States Code.
            (4) Local government.--The term ``local government'' means 
        a political subdivision of a State.
            (5) Sale.--The term ``sale'' means transfer, sell, trade, 
        or give for value or otherwise.
            (6) State.--The term ``State'' means any of the several 
        States, the District of Columbia, or any commonwealth, 
        territory, or possession of the United States.
            (7) Tax.--The term ``tax'' means a tax, fee, or charge 
        payable to the State or local government.

SEC. 6. SEVERABILITY.

    If any provision of this Act, or the application of such provision 
to any person, entity, or circumstance, is held to be unconstitutional, 
the remaining provisions of this Act, and the application of such 
provisions to any person, entity, or circumstance, shall not be 
affected thereby.

SEC. 7. EFFECTIVE DATE; APPLICATION OF ACT.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
shall take effect on the date of the enactment of this Act.
    (b) Application of Act.--This Act shall not apply with respect to 
any liability for taxes accrued and enforced before the date of 
enactment of this Act or to ongoing litigation relating to such taxes.