‘‘Firearms (other than handguns, assault
weapons, and pistols or revolvers).
‘‘Shells and cartridges not taxable at 25
percent.
‘‘ARTICLES TAXABLE AT 10 PERCENT.—
‘‘Pistols and revolvers not taxable at 25
percent.
‘‘(b) DEFINITIONS.—For purposes of subsection
(a)—
‘‘(1) HANDGUN.—The term ‘handgun’ means a
firearm which, at the time of manufacture, had a
barrel of less than 12 inches in length.
‘‘(2) ASSAULT
WEAPON.—The term ‘assault
weapon’ means—
‘‘(A) a firearm—
‘‘(i) which—
‘‘(I) has a barrel of between 12
and 18 inches in length, and
‘‘(II) is capable of receiving am-
munition directly from a large capac-
ity ammunition magazine, or
‘‘(ii) which is a semiautomatic firearm
which is—
‘‘(I) not recognized generally as
particularly suitable for, or readily
adaptable to, sporting purposes, or
‘‘(II) concealable by a person, or
‘‘(B) a firearm which is substantially func-
tionally equivalent to a firearm described in
subparagraph (A).
‘‘(3) LARGE
CAPACITY
AMMUNITION
MAGA-
ZINE.—The term ‘large capacity ammunition maga-
zine’ means a detachable magazine, belt, drum, feed
strip, or similar device which has, or which may be
readily restored (or converted) to a device which has,
a capacity of 15 or more rounds of ammunition.’’
(b) RETAIL TAX ON SUBSEQUENT TRANSACTIONS
INVOLVING ASSAULT WEAPONS AND HANDGUNS.—
(1) IN GENERAL.—Chapter 31 of the Internal
Revenue Code of 1986 (relating to retail excise
taxes) is amended by adding at the end the following
new subchapter:
‘‘Subchapter D—Handguns and Assault
Weapons
‘‘Sec. 4056. Handguns and assault weapons.
‘‘SEC. 4056. HANDGUNS AND ASSAULT WEAPONS.
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed
on any sale, transfer, or other disposition by any person
of a handgun, assault weapon, large capacity magazine,
or shells and cartridges used in handguns and assault
weapons a tax equal to 25 percent of the price for which
sold, transferred, or disposed of.
‘‘(b) EXCEPTIONS.—
‘‘(1) COORDINATION
WITH
MANUFACTURER’S
TAX.—If tax has been paid under section 4181 with
respect to any article, no tax shall be imposed under
subsection (a) on such article until a sale, transfer,
or disposition occurring after the first retail sale of
the article.
‘‘(2) DEFENSE DEPARTMENT.—No tax shall be
imposed by subsection (a) on any sale described in
section 4182(b).
‘‘(c) DEFINITIONS.—For purposes of this section, the
terms ‘handgun’, ‘assault weapon’, and ‘large capacity
magazine’ have the meanings given such terms by section
4181(b).’’
(2) CONFORMING AMENDMENT.—The table of
subchapters for chapter 31 of such Code is amended
by adding at the end the following new item:
‘‘Subchapter D—Handguns and Assault Weapons.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to sales, transfers, and other dis-
positions after the 30th day after the date of the enact-
ment of this Act.
SEC. 4. HEALTH CARE TRUST FUND.
(a) IN GENERAL.—Subchapter A of chapter 98 of the
Internal Revenue Code of 1986 (relating to trust fund
code) is amended by adding at the end thereof the follow-
ing new section:
‘‘SEC. 9512. HEALTH CARE TRUST FUND.
‘‘(a) ESTABLISHMENT OF THE TRUST FUND.—There
is established in the Treasury of the United States a trust
fund to be known as the ‘Health Care Trust Fund’, con-
sisting of such amounts as may be appropriated or cred-
ited to such Trust Fund as provided in this section or
section 9602(b).
‘‘(b) TRANSFERS TO THE TRUST FUND.—There are
hereby appropriated to the Health Care Trust Fund
amounts equivalent to—
‘‘(1) the taxes received in the Treasury under
section 4056,
‘‘(2) the taxes received in the Treasury under
section 4181 which are attributable to the tax on
articles subject to the 25-percent rate, and
‘‘(3) 
the 
amounts 
described 
in 
section
923(a)(3)(D) of title 18, United States Code.
‘‘(c) EXPENDITURES FROM
THE TRUST FUND.—
Funds in the Health Care Trust Fund shall be available,
as provided in appropriations Acts, only for the purpose
of making grants to assist hospitals, trauma centers or
other health care providers that have incurred substantial
uncompensated costs in providing medical care to gunshot
victims except that no single hospital, trauma center or
health care provider may receive more than one-tenth of
1 percent of the funds appropriated under this section.
‘‘(d) ELIGIBILITY FOR TRUST FUND MONEYS.—A
hospital, trauma center or other health care provider is
eligible to apply for grants from the Trust Fund for any
calendar year if the hospital, trauma center or health care
provider—
‘‘(1) is in compliance with Federal and State
certification and licensing requirements;
‘‘(2) is a not-for-profit entity; and
‘‘(3) has incurred substantial uncompensated
costs during the previous calendar year in providing
medical care to gunshot victims.
‘‘(e) REGULATIONS FOR TRUST FUND.—The Sec-
retary shall, not later than 60 days after the date of enact-
ment of this section and in consultation with the Secretary
of Health and Human Services, issue such regulations as
are necessary to implement the provisions of this section.’’
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subchapter A of chapter 98 of such Code is
amended by adding at the end the following new item:
‘‘Sec. 9512. Health Care Trust Fund.’’
SEC. 5. LICENSE APPLICATION FEES FOR DEALERS IN
FIREARMS.
(a) IN GENERAL.—Section 923(a)(3) of title 18,
United States Code, is amended—
(1) in subparagraph (B) by striking ‘‘$25’’ and
inserting ‘‘$2,500’’;
(2) in subparagraph (C) by striking ‘‘$10’’ and
inserting ‘‘$2,500’’; and
(3) by adding at the end the following new sub-
paragraph (D):
‘‘(D) There are hereby appropriated to the
Health Care Trust Fund established under sec-
tion 9512 of the Internal Revenue Code of 1986
(26 U.S.C. 9512) United States Code one-half
of the revenue from the fees collected under
subparagraphs (B) and (C).’’
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to license applications filed after
the 30th day after the date of the enactment of this Act.
Æ