PrintThe Firearms Fairness and Affordability Act
Congressional Sportsmen Caucus Co-Chairs, Senators Max Baucus (D-MT) and Mike Crapo (R-ID) introduced legislation, S. 3331, seeking to rectify a longstanding inequity in the collection of the firearms and ammunition excise tax (FAET); a major source of wildlife conservation funding. S. 3331 is the companion bill to H.R. 6310 introduced in the House last month.
The Firearms and Ammunition Excise Tax flows from the IRS through the U.S. Fish & Wildlife Service to the state wildlife agencies and is the major source of funding for the Pittman-Robertson Wildlife Restoration Trust Fund.
If passed, S. 3331 and H.R. 6310 would allow the firearms and ammunition industry to pay the FAET on a quarterly basis; the same payment schedule as every other industry that supports conservation through dedicated excise taxes. Currently firearms and ammunition manufacturers must pay the FAET bi-weekly. This payment schedule forces many manufacturers to borrow money to ensure on-time payment, and industry members spend thousands of man-hours administering the necessary paperwork to successfully complete the bi-weekly payments - monies that are due long before manufacturers are paid by their customers. Changing the schedules could annually free millions of dollars for manufacturers to invest and contribute to industry growth, which in turn, would expand the FAET base.
"I'm an avid supporter of the second amendment. My legislation will help cut bureaucratic red tape and help the firearm industry save resources," Baucus said. "At the same time this bill will help preserve our outdoor heritage. This is a good bill and I'll work together with my colleagues to get this passed."
"Switching to a quarterly excise tax payment system allows manufacturers to reinvest funds into researching and developing new products, purchasing new machinery and potentially increasing marketing," Crapo said. "This action could result in increased sales and, eventually, more money for wildlife programs. Forcing the firearms and ammunition industry to this sharply-higher standard of tax payments is discriminatory and patently unfair."
Read about the recent FAET Briefing
Read more about FAET
