II

103D CONGRESS

2D SESSION S. 1798

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

and assault weapons and to impose a tax on the transfer of handguns

and assault weapons, to increase the license application fee for gun

dealers, and to use the proceeds from those increases to pay for medical

care for gunshot victims.

IN THE SENATE OF THE UNITED STATES

JANUARY 25, 1994

Mr. BRADLEY introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to increase

the tax on handguns and assault weapons and to impose

a tax on the transfer of handguns and assault weapons,

to increase the license application fee for gun dealers,

and to use the proceeds from those increases to pay

for medical care for gunshot victims.

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 ‘‘Gun Violence Health

5 Care Costs Prevention Act’’.
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1 SEC. 2. FINDINGS.

2 The Congress finds that—

3 (1) there are currently over 209,000,000 fire4 arms in the United States, 71,000,000 of which are

5 handguns and 1,000,000 of which are semi-auto6 matic assault weapons;

7 (2) there are now over 280,000 federally li8 censed gun dealers in the United States, as com9 pared to 155,000 grocery stores and 210,000 gas

10 stations;

11 (3) a Federal firearms dealer’s license allows

12 the licensee to purchase firearms wholesale across

13 State lines;

14 (4) according to the Bureau of Alcohol, Tobacco

15 and Firearms, American taxpayers annually pay

16 more than $28,000,000 in subsidies to operate the

17 Federal firearms dealer licensing system;

18 (5) each year more than 24,000 Americans (65

19 Americans a day) are killed with handguns, either in

20 homicides, by committing suicide, or by uninten21 tional injuries;

22 (6) handguns account for only one-third of all

23 firearms in the United States, but account for two24 thirds of all firearm-related deaths;

25 (7) in 1991, the United States led the devel26 oped world with 14,373 gun murders, as compared
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1 to 186 gun murders in Canada, 76 gun murders in

2 Australia, 60 gun murders in England, and 74 gun

3 murders in Japan;

4 (8) in 1991, there were 11,497 murders com5 mitted with handguns, as compared to 745 murders

6 committed with rifles, 1,124 murders committed

7 with shotguns, and 3,430 murders committed with

8 knives;

9 (9) every 14 minutes someone in the United

10 States dies from a gunshot;

11 (10) in 1989, there were over 240,000 nonfatal

12 firearms injuries;

13 (11) 95 percent of the persons injured each

14 year by a handgun require emergency care or hos15 pitalization;

16 (12) firearms injuries, fatal and nonfatal, are

17 the third most costly type of injury overall;

18 (13) the total lifetime costs associated with fire19 arm deaths and injuries were $14,400,000,000 in

20 1985, increased to at least $16,200,000,000 by

21 1988, and increased to $20,400,000,000 by 1990;

22 (14) the health care cost of firearm-related in23 juries is approximately $3,000,000,000 a year;

24 (15) public funds pay for over 80 percent of the

25 cost of hospitalization for firearms injuries, exclud-
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1 ing professional fees and the cost of ambulance,

2 physical therapy, and other rehabilitative services;

3 (16) youngsters carry an estimated 270,000

4 guns to school every day;

5 (17) gun violence is a major public health prob6 lem and handguns, assault weapons, and the ammu7 nition for these firearms are major health hazards;

8 (18) the cost of firearms and firearms dealers

9 licenses should reflect the health costs of firearms to

10 our society;

11 (19) the Federal taxes on handguns, assault

12 weapons, and the ammunition for these firearms

13 should be significantly increased to partially offset

14 the health care costs of gun violence;

15 (20) the fees required for Federal firearms

16 dealer’s licenses should be significantly increased to

17 partially offset the health care costs of gun violence;

18 and

19 (21) the increased Federal taxes should not be

20 imposed on firearms and ammunition which are rec21 ognized as particularly suitable for, or readily adapt22 able to, sporting purposes.
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1 SEC. 3. LICENSE APPLICATION FEES FOR DEALERS IN

2 FIREARMS.

3 (a) IN GENERAL.—Section 923(a) of title 18, United

4 States Code, is amended—

5 (1) by striking subparagraph (B) of paragraph

6 (3) and inserting:

7 ‘‘(B) who is not a dealer in destructive de8 vices, a fee of $3,000 for 3 years (including re9 newals).’’; and

10 (2) by adding at the end the following new

11 flush sentence:

12 ‘‘There are hereby appropriated to the Gun Violence Trau13 ma Care Trust Fund established under section 9512 of

14 the Internal Revenue Code of 1986 (26 U.S.C. 9512) 93

15 percent of the revenues from fees collected under para16 graph (3)(B) for original licenses and 97 percent of the

17 revenues from such fees for renewal licenses.’’.

18 (b) EFFECTIVE DATE.—The amendments made by

19 this section shall apply to license applications (including

20 renewals) filed after the 180th day after the date of the

21 enactment of this Act.

22 SEC. 4. INCREASE IN TAX ON HANDGUNS AND ASSAULT

23 WEAPONS.

24 (a) INCREASE IN MANUFACTURER’S TAX.—

25 (1) IN GENERAL.—Part III of subchapter D of

26 chapter 32 of the Internal Revenue Code of 1986
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1 (relating to tax on firearms) is amended by adding

2 at the end the following new section:

3 ‘‘SEC. 4183. IMPOSITION OF ADDITIONAL TAX ON HAND4 GUNS AND ASSAULT WEAPONS.

5 ‘‘(a) IMPOSITION OF TAX.—In addition to any tax

6 imposed by section 4181, there is hereby imposed upon

7 the sale by the manufacturer, producer, or importer of any

8 of the following articles a tax equivalent to the specified

9 percentage of the price for which so sold:

10 ‘‘ARTICLES TAXABLE AT 20 PERCENT.—

11 ‘‘Handguns.

12 ‘‘ARTICLES TAXABLE AT 19 PERCENT.—

13 ‘‘Semiautomatic assault weapons.

14 ‘‘Shells and cartridges used in handguns

15 and semiautomatic assault weapons.

16 ‘‘(b) DEFINITIONS.—For purposes of subsection

17 (a)—

18 ‘‘(1) HANDGUN.—The term ‘handgun’ means

19 any pistol or revolver.

20 ‘‘(2) SEMIAUTOMATIC ASSAULT WEAPON.—

21 ‘‘(A) IN GENERAL.—The term ‘semiauto22 matic assault weapon’ means—

23 ‘‘(i) any of the semiautomatic fire24 arms known as—

25 ‘‘(I) A.A. Arms AP–9;
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1 ‘‘(II) Auto-Ordnance Thompson;

2 ‘‘(III) Barrett Light-Fifty;

3 ‘‘(IV) Beretta AR–70;

4 ‘‘(V) Bushmaster Auto Rifle;

5 ‘‘(VI) Calico M–900 and M–950;

6 ‘‘(VII) Cobray, Ingram and RPB

7 MAC–10 and MAC–11;

8 ‘‘(VIII) Colt AR–15 and Sporter;

9 ‘‘(IX) Encom MP–9 and MP–45;

10 ‘‘(X) Fabrique Nationale FN/

11 FAL, FN/LAR, and FNC;

12 ‘‘(XI) Feather AT–9;

13 ‘‘(XII) Federal XP900 and

14 XP450;

15 ‘‘(XIII) Franchi SPAS–12;

16 ‘‘(XIV) Intratec TEC–9 and

17 TEC–22;

18 ‘‘(XV) Israeli Military Industries

19 UZI and Galil;

20 ‘‘(XVI) Iver Johnson Enforcer

21 3000;

22 ‘‘(XVII) Norinco, Mitchell and

23 Poly Technologies Avtomat

24 Kalashnikovs;

25 ‘‘(XVIII) Steyr AUG; or
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1 ‘‘(XIX) USAS–12;

2 ‘‘(ii) a revolving-cylinder shotgun such

3 as or similar to the Street Sweeper or

4 Striker 12; and

5 ‘‘(iii) a semiautomatic firearm des6 ignated by the Secretary as a semiauto7 matic assault weapon under subsection (c).

8 ‘‘(B) EXCEPTIONS.—The term ‘semiauto9 matic assault weapon’ does not include (among

10 other firearms)—

11 ‘‘(i) any of the firearms known as—

12 ‘‘(I) Remington Model 1100 shot13 gun;

14 ‘‘(II) Remington Model 7400

15 rifle;

16 ‘‘(III) Mossberg Model 5500

17 shotgun;

18 ‘‘(IV) HK Model 300 rifle;

19 ‘‘(V) Marlin Model 9 camp car20 bine;

21 ‘‘(VI) Browning High-Power

22 rifle; or

23 ‘‘(VII) Remington Nylon 66 auto

24 loading rifle;
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1 ‘‘(ii) a firearm that is a manually op2 erated bolt action firearm;

3 ‘‘(iii) a lever action firearm;

4 ‘‘(iv) a slide action firearm; or

5 ‘‘(v) a firearm that has been rendered

6 permanently inoperable.

7 ‘‘(3) SHELLS AND CARTRIDGES.—

8 ‘‘(A) HANDGUNS.—The term ‘cartridges

9 used in handguns’ includes—

10 ‘‘(i) any centerfire cartridge which has

11 a cartridge case less than 1.3 inches in

12 length,

13 ‘‘(ii) any cartridge case which is less

14 than 1.3 inches in length, or

15 ‘‘(iii) any other ammunition listed

16 under subsection (c)(1)(B) as likely to be

17 used in a handgun.

18 ‘‘(B) SEMIAUTOMATIC ASSAULT WEAP19 ONS.—The term ‘shells or cartridges used in

20 semiautomatic assault weapons’ means any

21 shells, cartridges, magazines, or other ammuni22 tion which is listed under subsection (c)(1)(B)

23 as likely to be used in a semiautomatic assault

24 weapon.
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1 ‘‘(c) DESIGNATION OF SEMIAUTOMATIC ASSAULT

2 WEAPONS AND TAXABLE AMMUNITION.—

3 ‘‘(1) IN GENERAL.—Not later than 180 days

4 after the date of the enactment of this section, and

5 annually thereafter, the Secretary, in consultation

6 with the Attorney General, shall—

7 ‘‘(A) determine whether any other semi8 automatic firearm (other than a firearm de9 scribed in subsection (b)(2)(B)) should be des10 ignated as a semiautomatic assault weapon in

11 addition to those previously designated by sub12 section (b)(2)(A) or by the Secretary under this

13 subsection, and

14 ‘‘(B) publish a list of shells and cartridges

15 which are likely to be used in handguns and

16 semiautomatic assault weapons.

17 ‘‘(2) CRITERIA.—For purposes of paragraph

18 (1)(A), the Secretary shall by regulation designate

19 as a semiautomatic assault weapon a rifle, pistol, or

20 shotgun that is a semiautomatic firearm and that is

21 described in paragraph (3), (4), (5), or (6).

22 ‘‘(3) REPLICAS OR DUPLICATES.—A replica or

23 duplicate in any caliber of a semiautomatic firearm

24 described in subsection (b)(2)(A)(i) is a semiauto25 matic assault weapon.
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1 ‘‘(4) CERTAIN NONSPORTING FIREARMS.—A

2 rifle that is a semiautomatic firearm is a semiauto3 matic assault weapon if it—

4 ‘‘(A) is not generally recognized as being

5 particularly suitable for or readily adaptable to

6 sporting purposes,

7 ‘‘(B) has an ability to accept a detachable

8 magazine, and

9 ‘‘(C) has at least 2 of the following charac10 teristics:

11 ‘‘(i) A folding or telescoping stock.

12 ‘‘(ii) A pistol grip that protrudes con13 spicuously beneath the action of the weap14 on.

15 ‘‘(iii) A bayonet mount.

16 ‘‘(iv) A flash suppressor or threaded

17 barrel designed to accommodate a flash

18 suppressor.

19 ‘‘(v) A grenade launcher.

20 ‘‘(5) CERTAIN PISTOLS.—A pistol that is a

21 semiautomatic firearm is a semiautomatic assault

22 weapon if it—

23 ‘‘(A) is not generally recognized as being

24 particularly suitable for or adaptable to sport25 ing purposes,
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1 ‘‘(B) has an ability to accept a detachable

2 magazine, and

3 ‘‘(C) has at least 2 of the following charac4 teristics:

5 ‘‘(i) An ammunition magazine that at6 taches to the pistol outside of the pistol

7 grip.

8 ‘‘(ii) A threaded barrel capable of ac9 cepting a barrel extender, flash suppressor,

10 forward hand grip, or silencer.

11 ‘‘(iii) A shroud that is attached to or

12 partially or completely encircles the barrel

13 and that permits the shooter to hold the

14 firearm with the second hand without

15 being burned.

16 ‘‘(iv) A manufactured weight of 50

17 ounces or more when the pistol is un18 loaded.

19 ‘‘(v) A semiautomatic version of an

20 automatic firearm.

21 ‘‘(6) CERTAIN SHOTGUNS.—A shotgun that is a

22 semiautomatic firearm is a semiautomatic assault

23 weapon if it—
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1 ‘‘(A) is not generally recognized as being

2 particularly suitable for or adaptable to sport3 ing purposes, and

4 ‘‘(B) has at least 2 of the following charac5 teristics:

6 ‘‘(i) A folding or telescoping stock.

7 ‘‘(ii) A pistol grip that protrudes con8 spicuously beneath the action of the

9 weapon.

10 ‘‘(iii) A fixed magazine capacity in ex11 cess of 6 rounds.

12 ‘‘(iv) An ability to accept a detachable

13 magazine.’’.

14 (2) CONFORMING AMENDMENTS.—

15 (A) Section 4182(a) of such Code is

16 amended by inserting ‘‘or 4183’’ after ‘‘section

17 4181’’.

18 (B) Paragraph (6) of section 6091(b) of

19 such Code is amended by striking ‘‘section

20 4181’’ and inserting ‘‘section 4181 or 4183’’.

21 (C) The table of sections for part III of

22 subchapter D of chapter 32 of such Code is

23 amended by adding at the end the following

24 new item:

‘‘Sec. 4183. Imposition of additional tax on handguns and assault weapons.’’.
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1 (b) TAX ON SUBSEQUENT SALES OR TRANSFERS IN2 VOLVING ASSAULT WEAPONS AND HANDGUNS.—

3 (1) IN GENERAL.—Chapter 31 of the Internal

4 Revenue Code of 1986 is amended by adding at the

5 end the following new subchapter:

6 ‘‘Subchapter D—Handguns and

7 Semiautomatic Assault Weapons

‘‘Sec. 4056. Handguns and semiautomatic assault weapons.

8 ‘‘SEC. 4056. HANDGUNS AND SEMIAUTOMATIC ASSAULT

9 WEAPONS.

10 ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed

11 on any sale, transfer, or other disposition by any person

12 of a handgun, semiautomatic assault weapon, or shells and

13 cartridges used in handguns and semiautomatic assault

14 weapons a tax equal to 30 percent of the price for which

15 sold, transferred, or disposed of.

16 ‘‘(b) CREDIT FOR TAX PREVIOUSLY IMPOSED.—

17 ‘‘(1) IN GENERAL.—In the case of the 1st retail

18 sale of any article, and any sale, transfer, or disposi19 tion preceding the 1st retail sale, the amount of tax

20 imposed by subsection (a) shall be reduced by the

21 amount of tax imposed by this section, section 4181,

22 or section 4183 on any preceding sale, transfer, or

23 disposition of the article.
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1 ‘‘(2) REFUNDS.—If a taxpayer establishes to

2 the satisfaction of the Secretary that tax was im3 posed in excess of the amount due, the Secretary

4 shall pay (without interest) to the taxpayer the

5 amount of such excess.

6 ‘‘(3) REQUIREMENTS.—No reduction or refund

7 shall be made under this subsection unless the tax8 payer meets such requirements as the Secretary may

9 prescribe with respect to proof of payment of tax for

10 any prior sale, transfer, or disposition.

11 ‘‘(c) EXCEPTIONS.—

12 ‘‘(1) COORDINATION WITH MANUFACTURER’S

13 TAX.—No tax shall be imposed under subsection (a)

14 on a sale, transfer, or disposition of an article if tax

15 is imposed under section 4181 or 4183 with respect

16 to such sale, transfer, or disposition.

17 ‘‘(2) DEFENSE DEPARTMENT.—No tax shall be

18 imposed by subsection (a) on any sale described in

19 section 4182(b).

20 ‘‘(d) DEFINITIONS.—For purposes of this section, the

21 terms ‘handgun’, ‘semiautomatic assault weapon’, and

22 ‘shells and cartridges used in handguns and semiauto23 matic assault weapons’ have the meanings given such

24 terms by section 4183(b).’’.
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1 (2) CONFORMING AMENDMENT.—The table of

2 subchapters for chapter 31 of such Code is amended

3 by adding at the end the following new item:

‘‘Subchapter D—Handguns and Semiautomatic Assault

Weapons.’’.

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

5 this section shall apply to sales, transfers, and other dis6 positions after the 180th day after the date of the enact7 ment of this Act.

8 SEC. 5. GUN VIOLENCE TRAUMA CARE TRUST FUND.

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

10 Internal Revenue Code of 1986 (relating to trust fund

11 code) is amended by adding at the end the following new

12 section:

13 ‘‘SEC. 9512. GUN VIOLENCE TRAUMA CARE TRUST FUND.

14 ‘‘(a) ESTABLISHMENT OF THE TRUST FUND.—There

15 is established in the Treasury of the United States a trust

16 fund to be known as the ‘Gun Violence Trauma Care

17 Trust Fund’, consisting of such amounts as may be appro18 priated or credited to such Trust Fund as provided in this

19 section or section 9602(b).

20 ‘‘(b) TRANSFERS TO THE TRUST FUND.—There are

21 hereby appropriated to the Gun Violence Trauma Care

22 Trust Fund amounts equivalent to—

23 ‘‘(1) the taxes received in the Treasury under

24 section 4056,
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1 ‘‘(2) the taxes received in the Treasury under

2 section 4183, and

3 ‘‘(3) the amounts described in the last sentence

4 of section 923(a) of title 18, United States Code.

5 ‘‘(c) EXPENDITURES FROM THE TRUST FUND.—

6 Funds in the Gun Violence Trauma Care Trust Fund shall

7 be available, as provided in appropriations Acts, only—

8 ‘‘(1) for the purpose of making grants to assist

9 hospitals, trauma centers, or other health care pro10 viders that have incurred substantial uncompensated

11 costs in providing medical care to gunshot victims,

12 or

13 ‘‘(2) in the event a national health program is

14 established which compensates for those costs, for

15 the purpose of reimbursing that program for its

16 costs in providing the compensation.

17 ‘‘(d) ELIGIBILITY FOR TRUST FUND MONEYS.—A

18 hospital, trauma center, or other health care provider is

19 eligible to apply for grants from the Trust Fund for any

20 calendar year if the hospital, trauma center, or health care

21 provider—

22 ‘‘(1) is in compliance with Federal and State

23 certification and licensing requirements;

24 ‘‘(2) is a not-for-profit entity; and
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1 ‘‘(3) has incurred substantial uncompensated

2 costs during the previous calendar year in providing

3 medical care to gunshot victims.

4 ‘‘(e) REGULATIONS FOR TRUST FUND.—The Sec5 retary shall, not later than 180 days after the date of en6 actment of this section and in consultation with the Sec7 retary of Health and Human Services, issue such regula8 tions as are necessary to implement the provisions of this

9 section.’’.

10 (b) CONFORMING AMENDMENT.—The table of sec11 tions for subchapter A of chapter 98 of such Code is

12 amended by adding at the end the following new item:

‘‘Sec. 9512. Gun Violence Trauma Care Trust Fund.’’.

Æ

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