< Back to H.R. 3245 (103rd Congress, 1993–1994)

Text of To amend the Internal Revenue Code of 1986 to increase the tax on firearms.

This bill was introduced on October 7, 1993, in a previous session of Congress, but was not enacted. The text of the bill below is as of Oct 7, 1993 (Introduced).

Source: GPO

HR 3245 IH

103d CONGRESS

1st Session

H. R. 3245

To amend the Internal Revenue Code of 1986 to increase the tax on firearms.

IN THE HOUSE OF REPRESENTATIVES

October 7, 1993

Mr. REYNOLDS introduced the following bill; which was referred jointly to the Committees on Ways and Means and Energy and Commerce


A BILL

To amend the Internal Revenue Code of 1986 to increase the tax on firearms.

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

SECTION 1. INCREASE IN TAX ON AMMUNITION.

    (a) GENERAL RULE- Section 4181 of the Internal Revenue Code of 1986 (relating to imposition of tax) is amended by striking all that follows ‘so sold:’ and inserting the following:

      ‘ARTICLES TAXABLE AT 35 PERCENT--

        Pistols, revolvers, and other firearms.

      ‘ARTICLES TAXABLE AT 11 PERCENT--

        Shells, and cartridges.’

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on the 1st day of the 1st calendar month beginning more than 30 days after the date of the enactment of this Act.

    (c) FLOOR STOCKS TAX-

      (1) IMPOSITION OF TAX- In the case of any firearm on which tax was imposed under section 4181 of the Internal Revenue Code of 1986 before the tax-increase date and which is held on such date for sale by any dealer, there is hereby imposed a floor stocks tax on such firearm.

      (2) AMOUNT OF TAX- The amount of tax imposed by paragraph (1) with respect to any firearm shall be equal to the excess of--

        (A) the amount of the tax which would have been imposed under section 4181 of such Code on the sale by the manufacturer, producer, or importer of such firearm if the amendment made by subsection (a) had been applicable in determining the amount of such tax, over

        (B) the amount of tax actually under section 4181 of such Code with respect to such firearm before the tax-increase date.

      (3) LIABILITY FOR TAX AND METHOD OF PAYMENT-

        (A) LIABILITY FOR TAX- Any dealer holding any firearm on the tax-increase date to which any tax imposed by paragraph (1) applies shall be liable for such tax.

        (B) METHOD OF PAYMENT- The tax imposed by paragraph (1) shall be paid in such manner as the Secretary of the Treasury or his delegate shall prescribe by regulations.

        (C) TIME FOR PAYMENT- The tax imposed by paragraph (1) shall be paid before the close of the 6-month period beginning on the tax-increase date.

      (4) DEFINITIONS- For purposes of this subsection--

        (A) TAX-INCREASE DATE- The term ‘tax-increase date’ means the 1st day of the 1st calendar month beginning more than 30 days after the date of the enactment of this Act.

        (B) FIREARM- The term ‘firearm’ means any pistol, revolver, or other firearm.

      (5) OTHER LAWS APPLICABLE- All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4181 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 4181.

SEC. 2. HOSPITAL GUNSHOT COST RELIEF TRUST FUND.

    (a) IN GENERAL- Subchapter A of chapter 98 of the Internal Revenue Code of 1986 (relating to trust fund code) is amended by adding at the end thereof the following new section:

‘SEC. 9512. HOSPITAL GUNSHOT COST RELIEF 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 ‘Hospital Gunshot Cost Relief Trust Fund’, consisting of such amounts as may be appropriated or credited to such Trust Fund as provided in this section or section 9602(b).

    ‘(b) TRANSFERS TO TRUST FUND-

      ‘(1) IN GENERAL- There are hereby appropriated to the Hospital Gunshot Cost Relief Trust Fund amounts equivalent to the net revenues received in the Treasury from the additional firearms taxes.

      ‘(2) NET REVENUES- For purposes of paragraph (1), the term ‘net revenues’ means the amount established by the Secretary based on the excess of--

        ‘(A) the additional firearms taxes received in the Treasury, over

        ‘(B) the decrease in the tax imposed by chapter 1 resulting from the additional firearms taxes.

      ‘(3) ADDITIONAL FIREARMS TAXES- For purposes of this section, the term ‘additional firearms taxes’ means the taxes imposed by section 4181 with respect to pistols, revolvers, and other firearms to the extent such taxes are imposed at a rate in excess of 10 percent (11 percent in the case of firearms other than pistols and revolvers).

    ‘(c) EXPENDITURES FROM TRUST FUND- Amounts in the Hospital Gunshot Cost Relief Trust Fund shall be available, as provided in appropriation Acts, only for purposes of making expenditures to assist hospitals located in urban areas in defraying the costs incurred in providing medical care to gunshot victims who are not covered under any health plan.’

    (b) CLERICAL AMENDMENT- The table of sections for such subchapter A is amended by adding at the end thereof the following new item:

‘Sec. 9512. Hospital Gunshot Cost Relief Trust Fund.’