NFA Modernization Act of 2021

Bill: 117-hr-2427
Sponsor: full_name: Rep. Raskin, Jamie [D-MD-8]
Introduced: 2021-04-08
Policy area: Taxation
Subjects: Firearms and explosives

Government trust funds

Transfer and inheritance taxes
Latest action: action_date: 2021-10-19
text: Referred to the Subcommittee on Crime, Terrorism, and Homeland Security.

Summaries:
action_date: 2021-04-08
action_desc: Introduced in House
text: <p><strong>NFA Modernization Act of 2021</strong></p> <p>This bill increases from $200 to $300 the excise tax on the transfer of certain firearms. It also establishes a Firearms Trust Fund and transfers to such fund the revenues from the increased excise tax. </p> <p>The bill requires equal 50% expenditures from the fund for gun violence prevention initiatives of the Bureau of Alcohol, Firearms, and Explosives and the Office of Justice Programs of the Department of Justice.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 2427 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.

1. Short title This Act may be cited as the NFA Modernization Act of 2021 . 2. Increase in transfer tax on certain firearms (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 Internal 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 substituting 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 December 31, 2021. 3. Trust Fund (a) Establishment Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 9512. Gun violence 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 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 hereby appropriated to the Trust Fund each year an amount equal to the increase in net revenues received in the Treasury 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. .