Gun Violence Prevention and Safe Communities Act of 2022
Bill: H.R.8957 | Sponsor: Rep. Davis, Danny K. (D-IL)
Policy area: Taxation

Summary:
Gun Violence Prevention and Safe Communities Act of 2022
This bill increases by .5% the excise tax on firearms, including pistols, revolvers, and shells and cartridges. The bill establishes the Gun Violence Prevention Trust Fund into which the increased tax revenues are deposited to fund gun violence prevention programs. The Trust Fund creates separate accounts for violence prevention, gun violence research, hate crimes data collection and enforcement, and firearm forensics.
The bill also requires an inflation adjustment to the amount of the special tax on importers, manufacturers, and dealers in firearms and the transfer tax on firearms.

To amend the Internal Revenue Code of 1986 to increase certain taxes 
              related to firearms, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gun Violence Prevention and Safe 
Communities Act of 2022''.

SEC. 2. INCREASE IN EXCISE TAX ON SALE OF FIREARMS, ETC.

    (a) In General.--Section 4181 of the Internal Revenue Code of 1986 
is amended--
            (1) by striking ``There'' and inserting the following:
    ``(a) In General.--There'', and
            (2) by adding at the end the following new subsection:
    ``(b) Increased Tax To Fund Gun Violence Prevention Programs.--
            ``(1) In general.--Each rate of tax imposed under 
        subsection (a) is hereby increased by 0.5 percentage points.
            ``(2) Application of tax to frames and receivers.--
                    ``(A) In general.--Any frame or receiver of a 
                firearm shall be subject to tax under subsection (a) 
                (after taking into account paragraph (1)) in the same 
                manner as a firearm which is neither a pistol nor a 
                revolver.
                    ``(B) Special rule for split or modular frames and 
                receivers.--In the case of any split or modular frame 
                or receiver, if any module of such frame or receiver is 
                sold separately, such module shall be treated as a 
                frame or receiver if (and only if) such module is 
                required to be marked and serialized by the Attorney 
                General.
                    ``(C) Prevention of double taxation.--Subparagraph 
                (A) shall not apply to any frame or receiver if the 
                manufacturer, producer, or importer thereof 
                demonstrates to the satisfaction of the Secretary that 
                such frame or receiver will be used in the manufacture 
                or production of a firearm to which the tax imposed by 
                this section applies.''.
    (b) Exemption for United States.--Subsection (b) of section 4182 of 
the Internal Revenue Code of 1986 is amended to read as follows:
    ``(b) Sales to United States.--No firearm, pistol, revolver, frame 
or receiver for a firearm, shell, or cartridge 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 article.''.
    (c) Gun Violence Prevention Trust Fund.--
            (1) In general.--Subchapter A of chapter 98 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new section:

``SEC. 9512. GUN VIOLENCE PREVENTION TRUST FUND.

    ``(a) Creation of Trust Fund.--
            ``(1) In general.--There is established in the Treasury of 
        the United States a trust fund to be known as the `Gun Violence 
        Prevention Trust Fund', consisting of such amounts as may be 
        appropriated or credited to such fund as provided in this 
        section or section 9602(b).
            ``(2) Establishment of accounts.--There is established in 
        the Gun Violence Prevention Trust Fund each of the following 
        accounts:
                    ``(A) The Violence Prevention Account.
                    ``(B) The Gun Violence Research Account.
                    ``(C) Hate Crimes Data Collection, Prevention, and 
                Enforcement Account.
                    ``(D) Firearm Forensics Account.
            ``(3) Gun violence research subaccounts.--There is 
        established in the Gun Violence Research Account a Centers for 
        Disease Control and Prevention Subaccount and a National 
        Institutes of Health Subaccount.
    ``(b) Transfers to Trust Fund and Accounts.--There are hereby 
appropriated to the Gun Violence Prevention Trust Fund amounts 
equivalent to the taxes received in the Treasury under section 4181(b). 
Such amounts shall be divided equally among each of the accounts 
established under subsection (a)(2). Such amounts allocated to the Gun 
Violence Research Account under the preceding sentence shall be divided 
equally between the Centers for Disease Control and Prevention 
Subaccount and the National Institutes of Health Subaccount.
    ``(c) Expenditures.--Amounts in the Gun Violence Prevention Trust 
Fund shall be available, as provided in appropriation Acts, only as 
follows:
            ``(1) Violence prevention.--Amounts in the Violence 
        Prevention Account shall be available to the Office of Justice 
        Programs of the Department of Justice to carry out community-
        based violence intervention and prevention initiatives.
            ``(2) Gun violence research.--
                    ``(A) Centers for disease control and prevention.--
                Amounts in the Centers for Disease Control and 
                Prevention Subaccount shall be available to the 
                National Center for Injury Prevention and Control of 
                the Centers for Disease Control and Prevention for 
                purposes of research on gun violence and its 
                prevention, including prevention of suicide by firearm.
                    ``(B) National institutes of health.--Amounts in 
                the National Institutes of Health Subaccount shall be 
                available to the National Institutes of Health for 
                purposes of research on gun violence and its 
                prevention, including prevention of suicide by firearm.
            ``(3) Hate crimes data collection, prevention, and 
        enforcement.--Amounts in the Hate Crimes Data Collection, 
        Prevention, and Enforcement Account shall be available to carry 
        out the Jabara-Heyer NO HATE Act (section 5 of Public Law 117-
        13).
            ``(4) Firearm forensics.--Amounts in the Firearm Forensics 
        Account shall be available to the Bureau of Alcohol, Tobacco, 
        Firearms and Explosives for the activities of the National 
        Firearms Examiner Academy.''.
            (2) Conforming amendments.--
                    (A) Section 3(a) of the Pittman-Robertson Wildlife 
                Restoration Act (16 U.S.C. 669b(a)) is amended by 
                inserting ``(other than subsection (b) thereof)'' after 
                ``4181''.
                    (B) The table of sections for subchapter A of 
                chapter 98 of the Internal Revenue Code of 1986 is 
                amended by adding at the end the following new item:

``Sec. 9512. Gun Violence Prevention Trust Fund.''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to sales after the date of the enactment of this 
Act.

SEC. 3. INFLATION ADJUSTMENT OF OCCUPATIONAL AND TRANSFER TAXES 
              RELATING TO FIREARMS.

    (a) Occupational Tax Adjusted for Inflation.--
            (1) In general.--Section 5801 of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(c) Adjustment for Inflation.--In the case of any taxable period 
beginning in a calendar year after 2022, the $1,000 amounts in 
subsections (a)(1) and (b)(1) and the $500 amounts in subsections 
(a)(2) and (b)(1) shall each 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 2021' for 
        `calendar year 2016' in subparagraph (A)(ii) thereof.
If any increase under the preceding sentence is not a multiple of $10, 
such increase shall be rounded to the next lowest multiple of $10.''.
            (2) Effective date.--The amendment made by this section 
        shall apply to taxable periods beginning after December 31, 
        2022.
    (b) Transfer Tax Adjusted for Inflation.--
            (1) In general.--Section 5811 of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(d) Adjustment for Inflation.--In the case of any transfer after 
2022, the $200 and $5 amounts in subsection (a) shall each 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 transfer 
        occurs, determined by substituting `calendar year 2021' for 
        `calendar year 2016' in subparagraph (A)(ii) thereof.
If any increase under the preceding sentence is not a multiple of $5 
($1 in the case of any increase of the $5 amount), such increase shall 
be rounded to the next lowest multiple of $5 ($1 in the case of any 
increase of the $5 amount).''.
            (2) Effective date.--The amendment made by this section 
        shall apply to transfers after December 31, 2022.
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