Title: Firearm Industry Fairness Act
Policy area: Taxation

Summary:
Firearm Industry Fairness Act
This bill imposes a 20% surtax on the total revenue of each semi-automatic assault weapon manufacturer or importer. The bill defines semi-automatic assault weapon to include a semiautomatic rifle that has a fixed ammunition feeding device with the capacity to accept more than 15 rounds, semiautomatic pistols and shotguns, and other identified assault weapons.
The bill establishes the Community Violence Intervention and Prevention Trust Fund to hold tax revenues generated by this bill to carry out the Bureau of Justice Assistance Community Violence Intervention and Prevention Initiative to prevent and reduce violent crime in communities.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8741 Introduced in House (IH)]

<DOC>






117th CONGRESS
  2d Session
                                H. R. 8741

To amend the Internal Revenue Code of 1986 to impose a tax on the total 
   revenue of manufacturers and importers of semi-automatic assault 
                                weapons.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 23, 2022

  Mrs. Carolyn B. Maloney of New York 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 impose a tax on the total 
   revenue of manufacturers and importers of semi-automatic assault 
                                weapons.

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

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Firearm Industry 
Fairness Act''.
    (b) Findings.--Congress finds the following:
            (1) AR-15s are abnormally dangerous weapons meant for the 
        battlefield. AR-15-style rifles have been the weapon of choice 
        for the killers responsible for the deadliest mass shootings in 
        American history, including the recent mass murders in Buffalo, 
        New York, Uvalde, Texas, and Highland Park, Illinois.
            (2) Major gun manufacturers have been enjoying record-
        breaking sales and profits from AR-15-style rifles, even as gun 
        deaths and mass shootings have risen in the United States. 
        Studies have shown that gun violence and the human and economic 
        toll associated with the more than 40,000 annual firearm deaths 
        in America are strongly correlated with the availability of 
        firearms.
            (3) Large capacity magazines have been shown to lead to 
        increasingly deadly mass shootings because they allow the 
        shooter to continue firing for longer periods of time and 
        reduce the opportunities for law enforcement or other 
        bystanders to intervene to stop the killing.
            (4) Despite widespread diversion of weapons from major 
        manufacturers to unlawful use, the firearm industry has failed 
        to monitor the downstream distribution of their weapons to 
        distributors or other sellers, with the result that an 
        inordinate number of guns used in crimes of violence are 
        funneled through a small number of dealers.
            (5) An investigation into the gun industry's practices and 
        profits by the Committee on Oversight and Reform found that 
        five leading gun manufacturer's collected more than 
        $1,000,000,000 from the sale of AR-15-style weapons in the last 
        decade.

SEC. 2. TAX ON TOTAL REVENUE OF MANUFACTURERS AND IMPORTERS OF SEMI-
              AUTOMATIC ASSAULT WEAPONS.

    (a) In General.--Subtitle A of the Internal Revenue Code of 1986 is 
amended by inserting after chapter 6 the following new chapter:

  ``CHAPTER 7--MANUFACTURERS AND IMPORTERS OF SEMI-AUTOMATIC ASSAULT 
                                WEAPONS

``Sec. 1571. Imposition of tax on total revenue.

``SEC. 1571. IMPOSITION OF TAX ON TOTAL REVENUE.

    ``(a) In General.--There is hereby imposed (in addition to any 
other tax imposed by this title) for each taxable year a tax equal to 
20 percent of the total revenue of each semi-automatic assault weapons 
manufacturer or importer.
    ``(b) Total Revenue.--For purposes of this section, the term `total 
revenue' means total gross receipts reduced by the cost of goods sold.
    ``(c) Semi-Automatic Assault Weapons Manufacturer or Importer.--For 
purposes of this section--
            ``(1) In general.--The term `semi-automatic assault weapons 
        manufacturer or importer' means, with respect to any taxable 
        year, any manufacturer, producer, or importer (within the 
        meaning of section 4181) of any semi-automatic assault weapon 
        or large capacity ammunition feeding device, and any person 
        related to any such manufacturer, producer, or importer, if the 
        aggregate number of semi-automatic assault weapons and large 
        capacity ammunition feeding devices manufactured, produced, or 
        imported by such manufacturer, producer, or importer (and all 
        persons related to such manufacturer, produce, or importer) 
        during such taxable year exceeds 100.
            ``(2) Exception.--For purposes of determining under 
        paragraph (1) the number of such weapons and devices 
        manufactured, produced, or imported by any person, there shall 
        not be taken into account any such weapon or device 
        manufactured, produced, or imported solely for use by the 
        United States Government, any State or local government, or any 
        department, agency, or political subdivision thereof. The 
        Secretary shall prescribe such regulations and other guidance 
        as is necessary to prevent avoidance of the purposes of this 
        paragraph.
            ``(3) Related persons.--A person shall be treated as 
        related to another person if such person is in the same 
        controlled group (within the meaning of section 1563(a), 
        applied by substituting `more than 50 percent' for `at least 80 
        percent' each place it appears therein) as such other person. 
        Under regulations or other guidance prescribed by the 
        Secretary, principles similar to the principles of the 
        preceding sentence shall apply to a group of persons under 
        common control where 1 or more of such persons is not a 
        corporation.
    ``(d) Semi-Automatic Assault Weapons; Large Capacity Ammunition 
Feeding Device.--For purposes of this section--
            ``(1) Semi-automatic assault weapon.--The term `semi-
        automatic assault weapon' means any of the following, 
        regardless of country of manufacture or caliber of ammunition 
        accepted:
                    ``(A) A semiautomatic rifle that--
                            ``(i) has the capacity to accept a 
                        detachable ammunition feeding device; and
                            ``(ii) has any 1 of the following:
                                    ``(I) A pistol grip.
                                    ``(II) A forward grip.
                                    ``(III) A folding, telescoping, or 
                                detachable stock, or a stock that is 
                                otherwise foldable or adjustable in a 
                                manner that operates to reduce the 
                                length, size, or any other dimension, 
                                or otherwise enhances the 
                                concealability, of the weapon.
                                    ``(IV) A grenade launcher.
                                    ``(V) A barrel shroud.
                                    ``(VI) A threaded barrel.
                    ``(B) A semiautomatic rifle that has a fixed 
                ammunition feeding device with the capacity to accept 
                more than 15 rounds, except for an attached tubular 
                device designed to accept, and capable of operating 
                only with, .22 caliber rimfire ammunition.
                    ``(C) Any part, combination of parts, component, 
                device, attachment, or accessory that is designed or 
                functions to accelerate the rate of fire of a 
                semiautomatic firearm but not convert the semiautomatic 
                firearm into a machinegun.
                    ``(D) A semiautomatic pistol that--
                            ``(i) has an ammunition feeding device that 
                        is not a fixed ammunition feeding device; and
                            ``(ii) has any 1 of the following:
                                    ``(I) A threaded barrel.
                                    ``(II) A second pistol grip.
                                    ``(III) A barrel shroud.
                                    ``(IV) The capacity to accept a 
                                detachable ammunition feeding device at 
                                some location outside of the pistol 
                                grip.
                                    ``(V) A semiautomatic version of an 
                                automatic firearm.
                                    ``(VI) A manufactured weight of 50 
                                ounces or more when unloaded.
                                    ``(VII) A buffer tube, stabilizing 
                                brace or similar component that 
                                protrudes horizontally behind the 
                                pistol grip, and is designed or 
                                redesigned to allow or facilitate a 
                                firearm to be fired from the shoulder.
                    ``(E) A semiautomatic pistol with a fixed 
                ammunition feeding device that has the capacity to 
                accept more than 15 rounds.
                    ``(F) A semiautomatic shotgun that--
                            ``(i) has the capacity to accept a 
                        detachable ammunition feeding device or a fixed 
                        ammunition feeding device that has the capacity 
                        to accept more than 5 rounds; and
                            ``(ii) has any 1 of the following:
                                    ``(I) A folding, telescoping, or 
                                detachable stock.
                                    ``(II) A pistol grip or bird's head 
                                grip.
                                    ``(III) A forward grip.
                                    ``(IV) A grenade launcher.
                    ``(G) Any shotgun with a revolving cylinder.
                    ``(H) All of the following rifles, copies, 
                duplicates, variants, or altered facsimiles with the 
                capability of any such weapon thereof:
                            ``(i) All AK types, including the 
                        following:
                                    ``(I) AK, AK47, AK47S, AK-74, AKM, 
                                AKS, ARM, MAK90, MISR, NHM90, NHM91, 
                                Rock River Arms LAR-47, SA85, SA93, 
                                Vector Arms AK-47, VEPR, WASR-10, and 
                                WUM.
                                    ``(II) IZHMASH Saiga AK.
                                    ``(III) MAADI AK47 and ARM.
                                    ``(IV) Norinco 56S, 56S2, 84S, and 
                                86S.
                                    ``(V) Poly Technologies AK47 and 
                                AKS.
                                    ``(VI) SKS with a detachable 
                                ammunition feeding device.
                            ``(ii) All AR types, including the 
                        following:
                                    ``(I) AR-10.
                                    ``(II) AR-15.
                                    ``(III) Alexander Arms Overmatch 
                                Plus 16.
                                    ``(IV) Armalite M15 22LR Carbine.
                                    ``(V) Armalite M15-T.
                                    ``(VI) Barrett REC7.
                                    ``(VII) Beretta AR-70.
                                    ``(VIII) Black Rain Ordnance Recon 
                                Scout.
                                    ``(IX) Bushmaster ACR.
                                    ``(X) Bushmaster Carbon 15.
                                    ``(XI) Bushmaster MOE series.
                                    ``(XII) Bushmaster XM15.
                                    ``(XIII) Chiappa Firearms MFour 
                                rifles.
                                    ``(XIV) Colt Match Target rifles.
                                    ``(XV) CORE Rifle Systems CORE15 
                                rifles.
                                    ``(XVI) Daniel Defense M4A1 rifles.
                                    ``(XVII) Devil Dog Arms 15 Series 
                                rifles.
                                    ``(XVIII) Diamondback DB15 rifles.
                                    ``(XIX) DoubleStar AR rifles.
                                    ``(XX) DPMS Tactical rifles.
                                    ``(XXI) DSA Inc. ZM-4 Carbine.
                                    ``(XXII) Heckler & Koch MR556.
                                    ``(XXIII) High Standard HSA-15 
                                rifles.
                                    ``(XXIV) Jesse James Nomad AR-15 
                                rifle.
                                    ``(XXV) Knight's Armament SR-15.
                                    ``(XXVI) Lancer L15 rifles.
                                    ``(XXVII) MGI Hydra Series rifles.
                                    ``(XXVIII) Mossberg MMR Tactical 
                                rifles.
                                    ``(XXIX) Noreen Firearms BN 36 
                                rifle.
                                    ``(XXX) Olympic Arms.
                                    ``(XXXI) POF USA P415.
                                    ``(XXXII) Precision Firearms AR 
                                rifles.
                                    ``(XXXIII) Remington R-15 rifles.
                                    ``(XXXIV) Rhino Arms AR rifles.
                                    ``(XXXV) Rock River Arms LAR-15.
                                    ``(XXXVI) Sig Sauer SIG516 rifles 
                                and MCX rifles.
                                    ``(XXXVII) Smith & Wesson M&P15 
                                rifles.
                                    ``(XXXVIII) Stag Arms AR rifles.
                                    ``(XXXIX) Sturm, Ruger & Co. SR556 
                                and AR-556 rifles.
                                    ``(XL) Uselton Arms Air-Lite M-4 
                                rifles.
                                    ``(XLI) Windham Weaponry AR rifles.
                                    ``(XLII) WMD Guns Big Beast.
                                    ``(XLIII) Yankee Hill Machine 
                                Company, Inc. YHM-15 rifles.
                            ``(iii) Barrett M107A1.
                            ``(iv) Barrett M82A1.
                            ``(v) Beretta CX4 Storm.
                            ``(vi) Calico Liberty Series.
                            ``(vii) CETME Sporter.
                            ``(viii) Daewoo K-1, K-2, Max 1, Max 2, AR 
                        100, and AR 110C.
                            ``(ix) Fabrique Nationale/FN Herstal FAL, 
                        LAR, 22 FNC, 308 Match, L1A1 Sporter, PS90, 
                        SCAR, and FS2000.
                            ``(x) Feather Industries AT-9.
                            ``(xi) Galil Model AR and Model ARM.
                            ``(xii) Hi-Point Carbine.
                            ``(xiii) HK-91, HK-93, HK-94, HK-PSG-1, and 
                        HK USC.
                            ``(xiv) IWI TAVOR, Galil ACE rifle.
                            ``(xv) Kel-Tec Sub-2000, SU-16, and RFB.
                            ``(xvi) SIG AMT, SIG PE-57, Sig Sauer SG 
                        550, Sig Sauer SG 551, and SIG MCX.
                            ``(xvii) Springfield Armory SAR-48.
                            ``(xviii) Steyr AUG.
                            ``(xix) Sturm, Ruger & Co. Mini-14 Tactical 
                        Rifle M-14/20CF.
                            ``(xx) All Thompson rifles, including the 
                        following:
                                    ``(I) Thompson M1SB.
                                    ``(II) Thompson T1100D.
                                    ``(III) Thompson T150D.
                                    ``(IV) Thompson T1B.
                                    ``(V) Thompson T1B100D.
                                    ``(VI) Thompson T1B50D.
                                    ``(VII) Thompson T1BSB.
                                    ``(VIII) Thompson T1-C.
                                    ``(IX) Thompson T1D.
                                    ``(X) Thompson T1SB.
                                    ``(XI) Thompson T5.
                                    ``(XII) Thompson T5100D.
                                    ``(XIII) Thompson TM1.
                                    ``(XIV) Thompson TM1C.
                            ``(xxi) UMAREX UZI rifle.
                            ``(xxii) UZI Mini Carbine, UZI Model A 
                        Carbine, and UZI Model B Carbine.
                            ``(xxiii) Valmet M62S, M71S, and M78.
                            ``(xxiv) Vector Arms UZI Type.
                            ``(xxv) Weaver Arms Nighthawk.
                            ``(xxvi) Wilkinson Arms Linda Carbine.
                    ``(I) All of the following pistols, copies, 
                duplicates, variants, or altered facsimiles with the 
                capability of any such weapon thereof:
                            ``(i) All AK types, including the 
                        following:
                                    ``(I) Centurion 39 AK pistol.
                                    ``(II) CZ Scorpion pistol.
                                    ``(III) Draco AK-47 pistol.
                                    ``(IV) HCR AK-47 pistol.
                                    ``(V) IO Inc. Hellpup AK-47 pistol.
                                    ``(VI) Krinkov pistol.
                                    ``(VII) Mini Draco AK-47 pistol.
                                    ``(VIII) PAP M92 pistol.
                                    ``(IX) Yugo Krebs Krink pistol.
                            ``(ii) All AR types, including the 
                        following:
                                    ``(I) American Spirit AR-15 pistol.
                                    ``(II) Bushmaster Carbon 15 pistol.
                                    ``(III) Chiappa Firearms M4 Pistol 
                                GEN II.
                                    ``(IV) CORE Rifle Systems CORE15 
                                Roscoe pistol.
                                    ``(V) Daniel Defense MK18 pistol.
                                    ``(VI) DoubleStar Corporation AR 
                                pistol.
                                    ``(VII) DPMS AR-15 pistol.
                                    ``(VIII) Jesse James Nomad AR-15 
                                pistol.
                                    ``(IX) Olympic Arms AR-15 pistol.
                                    ``(X) Osprey Armament MK-18 pistol.
                                    ``(XI) POF USA AR pistols.
                                    ``(XII) Rock River Arms LAR 15 
                                pistol.
                                    ``(XIII) Uselton Arms Air-Lite M-4 
                                pistol.
                            ``(iii) Calico pistols.
                            ``(iv) DSA SA58 PKP FAL pistol.
                            ``(v) Encom MP-9 and MP-45.
                            ``(vi) Heckler & Koch model SP-89 pistol.
                            ``(vii) Intratec AB-10, TEC-22 Scorpion, 
                        TEC-9, and TEC-DC9.
                            ``(viii) IWI Galil Ace pistol, UZI PRO 
                        pistol.
                            ``(ix) Kel-Tec PLR 16 pistol.
                            ``(x) All MAC types, including the 
                        following:
                                    ``(I) MAC-10.
                                    ``(II) MAC-11.
                                    ``(III) Masterpiece Arms MPA A930 
                                Mini Pistol, MPA460 Pistol, MPA 
                                Tactical Pistol, and MPA Mini Tactical 
                                Pistol.
                                    ``(IV) Military Armament Corp. 
                                Ingram M-11.
                                    ``(V) Velocity Arms VMAC.
                            ``(xi) Sig Sauer P556 pistol.
                            ``(xii) Sites Spectre.
                            ``(xiii) All Thompson types, including the 
                        following:
                                    ``(I) Thompson TA510D.
                                    ``(II) Thompson TA5.
                            ``(xiv) All UZI types, including Micro-UZI.
                    ``(J) All of the following shotguns, copies, 
                duplicates, variants, or altered facsimiles with the 
                capability of any such weapon thereof:
                            ``(i) DERYA Anakon MC-1980, Anakon SD12.
                            ``(ii) Doruk Lethal shotguns.
                            ``(iii) Franchi LAW-12 and SPAS 12.
                            ``(iv) All IZHMASH Saiga 12 types, 
                        including the following:
                                    ``(I) IZHMASH Saiga 12.
                                    ``(II) IZHMASH Saiga 12S.
                                    ``(III) IZHMASH Saiga 12S EXP-01.
                                    ``(IV) IZHMASH Saiga 12K.
                                    ``(V) IZHMASH Saiga 12K-030.
                                    ``(VI) IZHMASH Saiga 12K-040 
                                Taktika.
                            ``(v) Streetsweeper.
                            ``(vi) Striker 12.
                    ``(K) All belt-fed semiautomatic firearms, 
                including TNW M2HB and FN M2495.
                    ``(L) Any combination of parts from which a firearm 
                described in subparagraphs (A) through (K) can be 
                assembled.
                    ``(M) The frame or receiver of a rifle or shotgun 
                described in subparagraph (G), (H), (J), or (K).
            ``(2) Large capacity ammunition feeding device.--The term 
        `large capacity ammunition feeding device'--
                    ``(A) means a magazine, belt, drum, feed strip, or 
                similar device, including any such device joined or 
                coupled with another in any manner, that has an overall 
                capacity of, or that can be readily restored, changed, 
                or converted to accept, more than 15 rounds of 
                ammunition; and
                    ``(B) does not include an attached tubular device 
                designed to accept, and capable of operating only with, 
                .22 caliber rimfire ammunition.
            ``(3) Other definitions.--
                    ``(A) Semiautomatic pistol.--The term 
                `semiautomatic pistol' means any repeating pistol 
                that--
                            ``(i) utilizes a portion of the energy of a 
                        firing cartridge to extract the fired cartridge 
                        case and chamber the next round; and
                            ``(ii) requires a separate pull of the 
                        trigger to fire each cartridge.
                    ``(B) Semiautomatic shotgun.--The term 
                `semiautomatic shotgun' means any repeating shotgun 
                that--
                            ``(i) utilizes a portion of the energy of a 
                        firing shell to extract the fired shell casing 
                        and chamber the next round; and
                            ``(ii) requires a separate pull of the 
                        trigger to fire each shell.
                    ``(C) Barrel shroud.--The term `barrel shroud'--
                            ``(i) means a shroud that is attached to, 
                        or partially or completely encircles, the 
                        barrel of a firearm so that the shroud protects 
                        the user of the firearm from heat generated by 
                        the barrel; and
                            ``(ii) does not include--
                                    ``(I) a slide that partially or 
                                completely encloses the barrel; or
                                    ``(II) an extension of the stock 
                                along the bottom of the barrel which 
                                does not encircle or substantially 
                                encircle the barrel.
                    ``(D) Detachable ammunition feeding device.--The 
                term `detachable ammunition feeding device' means an 
                ammunition feeding device that can be removed from a 
                firearm without disassembly of the firearm action.
                    ``(E) Fixed ammunition feeding device.--The term 
                `fixed ammunition feeding device' means an ammunition 
                feeding device that is contained in and not removable 
                from or is permanently fixed to the firearm, but does 
                not include an attached tubular device designed to 
                accept, and capable of operating only with, .22 caliber 
                rimfire ammunition.
                    ``(F) Folding, telescoping, or detachable stock.--
                The term `folding, telescoping, or detachable stock' 
                means a stock that folds, telescopes, detaches or 
                otherwise operates to reduce the length, size, or any 
                other dimension, or otherwise enhances the 
                concealability, of a firearm.
                    ``(G) Forward grip.--The term `forward grip' means 
                a grip located forward of the trigger that functions as 
                a pistol grip.
                    ``(H) Grenade launcher.--The term `grenade 
                launcher' means an attachment for use on a firearm that 
                is designed to propel a grenade or other similar 
                destructive device.
                    ``(I) Pistol grip.--The term `pistol grip' means a 
                grip, a thumbhole stock or Thordsen-type grip or stock, 
                or any other characteristic that can function as a 
                grip.
                    ``(J) Threaded barrel.--The term `threaded barrel' 
                means a feature or characteristic that is designed in 
                such a manner to allow for the attachment of a device 
                such as a firearm silencer or a flash suppressor.
                    ``(K) Belt-fed semiautomatic firearm.--The term 
                `belt-fed semiautomatic firearm' means any repeating 
                firearm that--
                            ``(i) utilizes a portion of the energy of a 
                        firing cartridge to extract the fired cartridge 
                        case and chamber the next round;
                            ``(ii) requires a separate pull of the 
                        trigger to fire each cartridge; and
                            ``(iii) has the capacity to accept a belt 
                        ammunition feeding device.
                    ``(L) Other terms.--Terms used in this subsection 
                which are also used in section 921 of title 18, United 
                States Code, shall have the same meaning as when used 
                in such section.''.
    (b) Clerical Amendment.--The table of chapters for subtitle A of 
such Code is amended by inserting after the item relating to chapter 6 
the following new item:

  ``Chapter 7. Manufacturers and Importers of Semi-Automatic Assault 
                              Weapons.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. FUNDING COMMUNITY VIOLENCE INTERVENTION AND PREVENTION.

    (a) Community Violence Intervention and Prevention Trust Fund.--
Subchapter A of chapter 98 is amended by adding at the end the 
following new section:

``SEC. 9512. COMMUNITY VIOLENCE INTERVENTION AND PREVENTION TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Community 
Violence Intervention and Prevention Trust Fund', consisting of such 
amounts as may be appropriated or credit to such Trust Fund as provided 
in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Community Violence Intervention and Prevention Trust Fund amounts 
equivalent to taxes received in the Treasury under section 1571.
    ``(c) Expenditures.--Amounts in the Community Violence Intervention 
and Prevention Trust Fund shall be available, as provided by 
appropriations Acts, for making expenditures to carry out the Bureau of 
Justice Assistance Community Violence Intervention and Prevention 
Initiative.''.
    (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. Community Violence Intervention and Prevention Trust 
                            Fund.''.
                                 <all>