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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘NFA Modernization 
Act of 2021’’. 
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SEC. 2. INCREASE IN TRANSFER TAX ON CERTAIN FIRE-
ARMS. 
(a) IN GENERAL.—Section 5811(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘$200’’ and 
inserting ‘‘$300’’. 
(b) INFLATION ADJUSTMENT.—Section 5811 of In-
ternal Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(d) INFLATION ADJUSTMENT.—In the case of a 
transfer in a calendar after 2022, the $300 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, by sub-
stituting ‘calendar year 2021’ for ‘calendar year 
2016’ in subparagraph (A)(ii) thereof.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this Act shall apply with respect to transfers after Decem-
ber 31, 2021. 
SEC. 3. TRUST FUND. 
(a) ESTABLISHMENT.—Subchapter A of chapter 98 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new section: 
‘‘SEC. 9512. GUN VIOLENCE PREVENTION TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
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to be known as the ‘Firearms Trust Fund’ (referred to 
in this section as the ‘Trust Fund’), consisting of such 
amounts as may be appropriated or credited to such fund 
as provided in this section or section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Trust Fund each year an amount 
equal to the increase in net revenues received in the Treas-
ury attributable to the amendments made by the NFA 
Modernization Act of 2021. 
‘‘(c) EXPENDITURES.—Amounts in the Trust Fund 
shall be available to the Attorney General, as provided in 
appropriation Acts, only as follows: 
‘‘(1) Fifty percent for the purpose of funding 
gun violence prevention initiatives of the Bureau of 
Alcohol, Tobacco, Firearms, and Explosives. 
‘‘(2) Fifty percent for the purpose of funding 
gun violence prevention initiatives of the Office of 
Justice Programs.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of such Code is amended 
by adding at the end the following new item: 
‘‘Sec. 9512. Gun violence prevention trust fund.’’. 
Æ 
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