SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Firearm Safety and Buyback Grant Act 
of 2013''.

SEC. 2. TAX ON HANDGUN PURCHASES.

    (a) In General.--Chapter 31 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subchapter:

                  ``Subchapter D--Concealable Firearms

``Sec. 4056. Imposition of tax.

``SEC. 4056. IMPOSITION OF TAX.

    ``(a) In General.--There is hereby imposed on any retail sale of 
any concealable firearms a tax equal to 10 percent of the price for 
which so sold.
    ``(b) By Whom Paid.--The tax imposed by subsection (a) shall be 
paid by the seller of the concealable firearm.
    ``(c) Exemption for Law Enforcement Uses, etc.--No tax shall be 
imposed by this section on the sale of any concealable firearm to the 
Federal Government, or a State or local government.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Concealable firearm.--The term `concealable firearm' 
        has the meaning given the term `any other weapon' by section 
        5845.
            ``(2) Retail sale.--
                    ``(A) In general.--The term `retail sale' means the 
                sale, for a purpose other than resale, after 
                manufacture, production, or importation.
                    ``(B) Use treated as sale.--
                            ``(i) In general.--If any person uses an 
                        article taxable under this section before the 
                        first retail sale of such article, then such 
                        person shall be liable for tax under this 
                        section in the same manner as if such article 
                        were sold at retail by him.
                            ``(ii) Exemption for use in further 
                        manufacture.--Paragraph (1) shall not apply to 
                        use of an article as material in the 
                        manufacture or production of, or as a component 
                        part of, another article to be manufactured or 
                        produced by him.
                            ``(iii) Computation of tax.--In the case of 
                        any person made liable for tax by paragraph 
                        (1), the tax shall be computed on the price at 
                        which similar articles are sold at retail in 
                        the ordinary course of trade, as determined by 
                        the Secretary.
                            ``(iv) 1st retail sale; determination of 
                        price.--For purposes of this section, rules 
                        similar to the rules of section 4052 shall 
                        apply.
    ``(e) Coordination.--The tax imposed by subsection (a) is in 
addition to any tax imposed by sections 4181 and 5811.''.
    (b) Clarification Relating to Indian Tribal Governments.--
Subparagraph (A) of section 7871(a)(2) of such Code is amended by 
striking ``relating to tax on special fuels'' and inserting ``relating 
to retail excise taxes''.
    (c) Clerical Amendment.--The table of subchapters for chapter 31 of 
such Code is amended by adding at the end the following new item:

                ``subchapter d. concealable firearms.''.

    (d) Effective Date.--The amendments made by this section shall 
apply to sales on or after the 120th day after the date of the 
enactment of this Act.

SEC. 3. FIREARMS BUYBACK GRANT PROGRAM.

    (a) In General.--The Attorney General shall establish, in 
accordance with the provisions of this section, a grant program under 
which the Attorney General may make grants to eligible entities 
described in subsection (d)(1) for State, tribal, and local law 
enforcement agencies to carry out anti-violence campaigns, gun safety 
campaigns, and firearms buyback programs.
    (b) Firearms Buyback Program Defined.--For purposes of this 
section, the term ``firearms buyback program'' means, with respect to a 
State, tribal, or local law enforcement agency, a program carried out 
by such agency--
            (1) under which the agency purchases firearms from, or 
        accepts firearm donations made by, individuals;
            (2) the goal of which is to promote anti-violence 
        campaigns, gun safety, and proper disposal of firearms, and to 
        provide a process under which individuals may anonymously turn 
        in firearms to such agency; and
            (3) under which such agency may take measures to identify 
        if a firearm obtained through such program is lost or stolen 
        and may take measures to return any such firearm so identified 
        to the owner of such firearm.
    (c) Applications.--
            (1) In general.--An eligible entity desiring a grant under 
        this section shall submit to the Attorney General an 
        application for the grant, which shall be in such form and 
        contain, in addition to the information described in paragraph 
        (2), such information as the Attorney General may require.
            (2) Required information.--An application submitted by an 
        eligible entity for a grant under this section, with respect to 
        a firearms buyback program, shall contain assurances to the 
        satisfaction of the Attorney General that--
                    (A) in the case of an individual from whom a 
                firearm is obtained under the program--
                            (i) in the case such firearm is not a 
                        donation, such individual shall be provided a 
                        reward in an amount that is not less than $50 
                        and not more than $350 for such firearm; and
                            (ii) such individual shall remain 
                        anonymous, including by the assurance that the 
                        law enforcement agency carrying out such 
                        program will not collect or maintain any 
                        written record identifying or leading to the 
                        identity of the individual as the individual 
                        who provided such firearm under the program;
                    (B) firearms obtained under the program shall be 
                disposed of in a timely and appropriate manner, as 
                approved by the Attorney General; and
                    (C) none of the funds provided through the grant 
                will be used for the promotion of firearm sales.
    (d) Additional Definitions.--For purposes of this section:
            (1) Eligible entities.--The term ``eligible entity'' means 
        a State, unit of local government, Indian tribal government, or 
        State, tribal, or local law enforcement agency.
            (2) Firearm.--The term ``firearm'' has the meaning given 
        such term by section 921(a)(3) of title 18, United States Code.
            (3) State.--The term ``State'' means any State of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the United States Virgin Islands, American Samoa, 
        Guam, and the Northern Mariana Islands.
    (e) Funding.--
            (1) Authorization of appropriations for fiscal year 2013.--
        There is authorized to be appropriated $1,000,000 for fiscal 
        year 2013, in addition to amounts made available under 
        paragraph (2) for such fiscal year, to carry out this section.
            (2) Funds for fiscal year 2013 and subsequent fiscal years 
        from tax on concealable firearms.--For fiscal year 2013 and 
        each subsequent fiscal year, taxes imposed pursuant to section 
        4056 of the Internal Revenue Code of 1986 shall be available, 
        without further appropriation, to the Attorney General to carry 
        out this section.
Firearm Safety and Buyback Grant Act of 2013 - Amends the Internal Revenue Code to impose upon the seller of any concealable firearm an excise tax equal to 10% of its retail sales price. Exempts sales to federal, state, or local governments. Makes any person who uses a concealable firearm prior to its first retail sale liable for such tax as if such person sold such firearm at retail. Directs the Attorney General to award grants to states, Indian tribal governments, and local governments for their law enforcement agencies to carry out anti-violence and gun safety campaigns and firearms buyback programs.
Firearm Safety and Buyback Grant Act of 2013