Senators Crapo and Baucus Introduce Senate Version Of FAET Legislation

Congressional Sportsmen's Caucus Introduces Senate Version of FAET Legislation
(March 19, 2009) Washington, DC - Congressional Sportsmen's Caucus Senate Co-Chair Senator Mike Crapo and former Co-Chair Senator Max Baucus yesterday introduced the Senate version of H.R.510, introduced by former House Caucus Co-Chair Rep. Ron Kind, which would allow the firearms and ammunition industry to pay the firearms excise tax (FAET) on a quarterly basis, the same payment schedule as every other industry supporting conservation.
Senators Blanche Lincoln of Arkansas, Olympia Snowe of Maine, Pat Roberts of Kansas, John Ensign of Nevada, and Mike Enzi of Wyoming co-sponsored the legislation.
The Firearms Fairness and Affordability Act would reverse the current practice that requires firearms and ammunition manufacturers to pay excise taxes more frequently (every two weeks) than other sporting goods industries. The bill would simplify the process, allowing firearm and ammunition manufacturers to pay the excise tax on a quarterly basis, like all other industries.
"Singling out the firearms industry for tax payments every two weeks is bureaucratic and discriminatory," said Senator Crapo. "Changing to a quarterly excise tax payment system, as is used throughout the rest of the sporting goods industry, will allow firearms manufacturers to reinvest funds into developing new products and marketing efforts. It should provide increased funding for state wildlife preservation programs by easing restrictions surrounding the collection of these taxes. The firearms industry would still pay its full share of taxes, but it would do so in a more equitable manner that is keeping with other business practices."
"This is the right thing to do. It will help cut bureaucratic red tape and help the firearm industry save resources. This will ensure the gun industry is treated fairly," said Senator Baucus.
The Congressional Sportsmen's Foundation and a broad coalition of hunting, fishing and conservation groups have made passing this bill to reform the federal excise tax a legislative priority in the 111th Congress.
"We believe correcting this inequity will help our industry grow and just as importantly will help continue to fund major conservation efforts," said NSSF President Steve Sanetti."The frequency of tax payments for the firearms industry is an undue burden, and switching to a quarterly payment schedule would allow manufacturers to further invest in their business as opposed to securing loans just to pay the bi-weekly tax.
"We are very thankful to the Sportsmen's Caucus in the Senate for putting forth this legislation in conjunction with our house leadership. It is vital to not only the gun and ammunition industry, but also to the conservation community as a whole, " said CSF President Jeff Crane.
Last year the industry marked an important milestone in its longstanding support of wildlife conservation. Manufacturers have since 1991 contributed more than $3 billion dollars to fund wildlife conservation through the payment of the federal excise tax. Since the inception of the excise tax in 1937, more than $5.5 billion dollars has been collected.