I

103D CONGRESS

1ST SESSION H. R. 3245

To amend the Internal Revenue Code of 1986 to increase the tax on firearms.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 7, 1993

Mr. REYNOLDS introduced the following bill; which was referred jointly to the

Committees on Ways and Means and Energy and Commerce

A BILL

To amend the Internal Revenue Code of 1986 to increase

the tax on firearms.

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

3 SECTION 1. INCREASE IN TAX ON AMMUNITION.

4 (a) GENERAL RULE.—Section 4181 of the Internal

5 Revenue Code of 1986 (relating to imposition of tax) is

6 amended by striking all that follows ‘‘so sold:’’ and insert7 ing the following:

8 ‘‘ARTICLES TAXABLE AT 35 PERCENT—

9 Pistols, revolvers, and other firearms.

10 ‘‘ARTICLES TAXABLE AT 11 PERCENT—

11 Shells, and cartridges.’’
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall take effect on the 1st day of the 1st

3 calendar month beginning more than 30 days after the

4 date of the enactment of this Act.

5 (c) FLOOR STOCKS TAX.—

6 (1) IMPOSITION OF TAX.—In the case of any

7 firearm on which tax was imposed under section

8 4181 of the Internal Revenue Code of 1986 before

9 the tax-increase date and which is held on such date

10 for sale by any dealer, there is hereby imposed a

11 floor stocks tax on such firearm.

12 (2) AMOUNT OF TAX.—The amount of tax im13 posed by paragraph (1) with respect to any firearm

14 shall be equal to the excess of—

15 (A) the amount of the tax which would

16 have been imposed under section 4181 of such

17 Code on the sale by the manufacturer, pro18 ducer, or importer of such firearm if the

19 amendment made by subsection (a) had been

20 applicable in determining the amount of such

21 tax, over

22 (B) the amount of tax actually under sec23 tion 4181 of such Code with respect to such

24 firearm before the tax-increase date.
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1 (3) LIABILITY FOR TAX AND METHOD OF PAY2 MENT.—

3 (A) LIABILITY FOR TAX.—Any dealer hold4 ing any firearm on the tax-increase date to

5 which any tax imposed by paragraph (1) applies

6 shall be liable for such tax.

7 (B) METHOD OF PAYMENT.—The tax im8 posed by paragraph (1) shall be paid in such

9 manner as the Secretary of the Treasury or his

10 delegate shall prescribe by regulations.

11 (C) TIME FOR PAYMENT.—The tax im12 posed by paragraph (1) shall be paid before the

13 close of the 6-month period beginning on the

14 tax-increase date.

15 (4) DEFINITIONS.—For purposes of this sub16 section—

17 (A) TAX-INCREASE DATE.—The term ‘‘tax18 increase date’’ means the 1st day of the 1st cal19 endar month beginning more than 30 days after

20 the date of the enactment of this Act.

21 (B) FIREARM.—The term ‘firearm’’ means

22 any pistol, revolver, or other firearm.

23 (5) OTHER LAWS APPLICABLE.—All provisions

24 of law, including penalties, applicable with respect to

25 the taxes imposed by section 4181 of such Code
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1 shall, insofar as applicable and not inconsistent with

2 the provisions of this subsection, apply to the floor

3 stocks taxes imposed by paragraph (1), to the same

4 extent as if such taxes were imposed by such section

5 4181.

6 SEC. 2. HOSPITAL GUNSHOT COST RELIEF TRUST FUND.

7 (a) IN GENERAL.—Subchapter A of chapter 98 of the

8 Internal Revenue Code of 1986 (relating to trust fund

9 code) is amended by adding at the end thereof the follow10 ing new section:

11 ‘‘SEC. 9512. HOSPITAL GUNSHOT COST RELIEF TRUST

12 FUND.

13 ‘‘(a) CREATION OF TRUST FUND.—There is estab14 lished in the Treasury of the United States a trust fund

15 to be known as the ‘Hospital Gunshot Cost Relief Trust

16 Fund’, consisting of such amounts as may be appropriated

17 or credited to such Trust Fund as provided in this section

18 or section 9602(b).

19 ‘‘(b) TRANSFERS TO TRUST FUND.—

20 ‘‘(1) IN GENERAL.—There are hereby appro21 priated to the Hospital Gunshot Cost Relief Trust

22 Fund amounts equivalent to the net revenues re23 ceived in the Treasury from the additional firearms

24 taxes.
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1 ‘‘(2) NET REVENUES.—For purposes of para2 graph (1), the term ‘net revenues’ means the

3 amount established by the Secretary based on the

4 excess of—

5 ‘‘(A) the additional firearms taxes received

6 in the Treasury, over

7 ‘‘(B) the decrease in the tax imposed by

8 chapter 1 resulting from the additional firearms

9 taxes.

10 ‘‘(3) ADDITIONAL FIREARMS TAXES.—For pur11 poses of this section, the term ‘additional firearms

12 taxes’ means the taxes imposed by section 4181 with

13 respect to pistols, revolvers, and other firearms to

14 the extent such taxes are imposed at a rate in excess

15 of 10 percent (11 percent in the case of firearms

16 other than pistols and revolvers).

17 ‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts

18 in the Hospital Gunshot Cost Relief Trust Fund shall be

19 available, as provided in appropriation Acts, only for pur20 poses of making expenditures to assist hospitals located

21 in urban areas in defraying the costs incurred in providing

22 medical care to gunshot victims who are not covered under

23 any health plan.’’
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1 (b) CLERICAL AMENDMENT.—The table of sections

2 for such subchapter A is amended by adding at the end

3 thereof the following new item:

‘‘Sec. 9512. Hospital Gunshot Cost Relief Trust Fund.’’

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