I 

117TH CONGRESS 

1ST SESSION H. R. 2427 

To amend the Internal Revenue Code of 1986 to increase the transfer tax 

on certain firearms, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 8, 2021 

Mr. RASKIN introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committee on the Judiciary, 

for a period to be subsequently determined by the Speaker, in each case 

for consideration of such provisions as fall within the jurisdiction of the 

committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to increase 

the transfer tax on certain firearms, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘NFA Modernization 

5 Act of 2021’’. 


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•HR 2427 IH

1 SEC. 2. INCREASE IN TRANSFER TAX ON CERTAIN FIRE2 ARMS. 

3 (a) IN GENERAL.—Section 5811(a) of the Internal 

4 Revenue Code of 1986 is amended by striking ‘‘$200’’ and 

5 inserting ‘‘$300’’. 

6 (b) INFLATION ADJUSTMENT.—Section 5811 of In7 ternal Revenue Code of 1986 is amended by adding at the 

8 end the following new subsection: 

9 ‘‘(d) INFLATION ADJUSTMENT.—In the case of a 

10 transfer in a calendar after 2022, the $300 amount in 

11 subsection (a) shall be increased by an amount equal to— 

12 ‘‘(1) such dollar amount, multiplied by 

13 ‘‘(2) the cost-of-living adjustment determined 

14 under section 1(f)(3) for the calendar year, by sub15 stituting ‘calendar year 2021’ for ‘calendar year 

16 2016’ in subparagraph (A)(ii) thereof.’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this Act shall apply with respect to transfers after Decem19 ber 31, 2021. 

20 SEC. 3. TRUST FUND. 

21 (a) ESTABLISHMENT.—Subchapter A of chapter 98 

22 of the Internal Revenue Code of 1986 is amended by add23 ing at the end the following new section: 

24 ‘‘SEC. 9512. GUN VIOLENCE PREVENTION TRUST FUND. 

25 ‘‘(a) CREATION OF TRUST FUND.—There is estab26 lished in the Treasury of the United States a trust fund 


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1 to be known as the ‘Firearms Trust Fund’ (referred to 

2 in this section as the ‘Trust Fund’), consisting of such 

3 amounts as may be appropriated or credited to such fund 

4 as provided in this section or section 9602(b). 

5 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here6 by appropriated to the Trust Fund each year an amount 

7 equal to the increase in net revenues received in the Treas8 ury attributable to the amendments made by the NFA 

9 Modernization Act of 2021. 

10 ‘‘(c) EXPENDITURES.—Amounts in the Trust Fund 

11 shall be available to the Attorney General, as provided in 

12 appropriation Acts, only as follows: 

13 ‘‘(1) Fifty percent for the purpose of funding 

14 gun violence prevention initiatives of the Bureau of 

15 Alcohol, Tobacco, Firearms, and Explosives. 

16 ‘‘(2) Fifty percent for the purpose of funding 

17 gun violence prevention initiatives of the Office of 

18 Justice Programs.’’. 

19 (b) CLERICAL AMENDMENT.—The table of sections 

20 for subchapter A of chapter 98 of such Code is amended 

21 by adding at the end the following new item: 

‘‘Sec. 9512. Gun violence prevention trust fund.’’. 

Æ 


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