The Washington Post has denounced the inclusion of bonus depreciation in the just-passed tax extenders bill for 2014. The correct term is “partial expensing.” There is nothing “bonus” about it. The...
- The Tax Policy Blog
- Old McDonald Pays a Tax, If He Wins in Court (a Gun Tax, ...
Old McDonald Pays a Tax, If He Wins in Court (a Gun Tax, That Is)
With all the news stories about gun rights -- the court battle between the City of Chicago and Otis McDonald and the carry-in service at Starbucks -- here's a reminder of how guns are taxed. The standard taxes on pistols, revolvers, etc. are collected at the distributor level. Each gun carries either a 10% or 11% tax, administered by the Tax and Trade Bureau at the Treasury Department.
The IRS reports collections of $312 million during fiscal year 2008 (10/1/07 - 9/30/08) on line 152, column V of this spreadsheet.
NFA transfer taxes (paid by the individual when he acquires a machine gun, short-barreled rifle, etc.) are administered by the Bureau of Alcohol, Tobacco, Firearms and Explosives. That payment is generally $200 plus some administrative rigamarole that enables local officials to delay and track transfers. See pp. 185-190 of the Federal Firearms Regulations Reference Guide.
Subscribe to the Tax Foundation Newsletter
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.