Gun Violence Prevention and Safe Communities Act of 2018

To amend the Internal Revenue Code of 1986 to increase the excise tax and special occupational tax in respect of firearms and to increase the transfer tax on any other weapon, and for other purposes. 1. Short title This Act may be cited as the Gun Violence Prevention and Safe Communities Act of 2018 2. Increase in excise taxes relating to firearms (a) In general Section 4181 4181. Imposition of tax There is hereby imposed upon the sale by the manufacturer, producer, or importer of the following articles a tax equivalent to the specified percent of the price for which so sold: (1) Articles taxable at 20 percent: (A) Pistols. (B) Revolvers. (C) Firearms (other than pistols and revolvers). (D) Any lower frame or receiver for a firearm, whether for a semiautomatic pistol, rifle, or shotgun that is designed to accommodate interchangeable upper receivers. (2) Articles taxable at 50 percent: Shells and cartridges. . (b) Exemption for United States Subsection (b) of section 4182 (b) Sales to United States No firearms, pistols, revolvers, lower frame or receiver for a firearm, shells, and cartridges purchased with funds appropriated for any department, agency, or instrumentality of the United States shall be subject to any tax imposed on the sale or transfer of such articles. . (c) Availability of funds from increased taxes (1) Allocation Amounts in the general fund of the Treasury by reason of section 3(a) of the Pittman-Robertson Wildlife Restoration Act (as amended by paragraph (2) of this subsection) are hereby appropriated and shall be available, as follows: (A) Thirty-five percent of such amounts shall be available for community-oriented policing services grants for the hiring and rehiring of additional career law enforcement officers under section 1701(b) of title I of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3796dd(b) (B) Thirty-five percent of such amounts shall be available for the Project Safe Neighborhoods, as authorized by the Consolidated Appropriations Act, 2017 ( Public Law 115–31 (C) Ten percent of such amounts shall be available for the Centers for Disease Control National Center for Injury Prevention and Control for purposes of research on gun violence and its prevention. (D) Five percent of such amounts shall be available for the National Criminal History Improvement Program authorized under section 302(c) of title I of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3732(c) (E) Five percent of such amounts shall be available for the NICS Act Record Improvement Program authorized under section 301 of the NICS Improvement Amendments Act of 2007 ( 18 U.S.C. 922 (F) Five percent for the Community-Based Violence Prevention Field-Initiated Research and Evaluation Program of the Department of Justice. (G) Five percent of such amounts shall be available for the Secretary of Education to provide directed grants and technical assistance to schools eligible for or receiving grants under part A of title I of the Elementary and Secondary Education Act of 1965 to develop and implement comprehensive, evidence-based local or regional strategies (such as positive behavior interventions and supports, social and emotional learning, and restorative justice programs) to improve school climate, reduce the use of exclusionary school discipline, and decrease the number of youth entering the juvenile and criminal justice systems. (2) Conforming amendment Section 3(a) of the Pittman-Robertson Wildlife Restoration Act ( 16 U.S.C. 669b(a) There shall not be covered into the fund the portion of the tax imposed by such section 4181 that is attributable to any increase in amounts received in the Treasury under such section by reason of the amendments made by section 2 of the Gun Violence Prevention and Safe Communities Act of 2018 (d) Effective date The amendments made by this section shall apply with respect to sales after December 31, 2018. 3. Special tax and licensing relating to firearms (a) Increase in tax (1) General rule Subsection (a) of section 5801 (A) in paragraph (1) by striking $1,000 $2,000 (B) in paragraph (2) by striking $500 50 percent of the dollar amount applicable under paragraph (1) for the taxable year (2) Small importers and manufacturers Paragraph (1) of section 5801(b) of such Code is amended by striking substituting $500 $1,000 substituting 50 percent of the dollar amount applicable under such paragraph for the taxable year $2,000 (3) Adjustment for inflation Section 5801 (c) Adjustment for inflation In the case of any taxable year beginning in a calendar year after 2019, the dollar amount in subsection (a)(1) shall be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2018 calendar year 2016 If any increase under paragraph (1) is not a multiple of $10, such increase shall be rounded to the next lowest multiple of $10. . (b) Increase in transfer tax on firearms (1) In general Subsection (a) of section 5811 (A) by striking $200 $500 (B) by striking $5 $100 (2) Adjustment for inflation Section 5811 (d) Adjustment for inflation In the case of any taxable year beginning in a calendar year after 2019, each dollar amount in subsection (a) shall be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2018 calendar year 2016 If any increase under paragraph (1) is not a multiple of $5, such increase shall be rounded to the next lowest multiple of $5. . (c) Certain semiautomatic pistols chambered for cartridges treated as firearms The first sentence of section 5845(a) (1) by striking and (8) (2) by striking device. device, and (3) by adding at the end the following: (9) a semiautomatic pistol chambered for cartridges commonly considered rifle rounds, configured with receivers commonly associated with rifles and capable of accepting detachable magazines. (d) Effective dates (1) In general Except as provided by paragraph (2), the amendments made by this section shall take effect on January 1, 2019. (2) In general The amendments made by subsection (a) shall take effect on July 1, 2019. (3) All taxpayers treated as commencing in business on July 1, 2019 Any person engaged on July 1, 2019, in any trade or business which is subject to an occupational tax by reason of the amendment made by subsection (a) shall be treated for purposes of such tax as having first engaged in a trade or business on such date.

Summary: Gun Violence Prevention and Safe Communities Act of 2018 This bill amends the Internal Revenue Code, with respect to the excise tax on the sale of firearms by manufacturers, producers, or importers, to: (1) increase the rate of such tax to 20% on pistols, revolvers, and other firearms and on any lower frame or receiver for a firearm; and (2) impose a 50% tax on shells and cartridges. The bill exempts any department, agency, or instrumentality of the United States from such tax. The bill allocates revenues from the increased excise tax under this bill for law enforcement and public safety grant programs, including programs for research on gun violence and its prevention. The bill: (1) increases the occupational tax on importers, manufacturers, and dealers in firearms and the transfer tax on firearms; and (2) modifies the definition of "firearm" for excise tax purposes to include a semiautomatic pistol chambered for cartridges and configured with receivers commonly associated with rifles and capable of accepting detachable magazines.