August 6, 2010
Senate Passes Industry Excise Tax Bill
The Senate yesterday passed legislation that corrects a longstanding inequity in the Internal Revenue Code by permitting firearm and ammunition manufacturers to pay the federal excise tax payment on a quarterly basis, just as other industries that support conservation through a federal excise tax on their products do. Currently, firearms and ammunition manufacturers pay this tax on a bi-weekly schedule, forcing many manufacturers to borrow money to ensure on-time payment. Industry members spend thousands of staff-hours administering the necessary paperwork to successfully complete the bi-weekly tax payments—monies that are due to the federal government long before manufacturers are paid by their customers.
The Firearms Excise Tax Improvement Act of 2010 (H.R. 5552) passed the House of Representatives at the end of June by a vote of 412-6. Yesterday’s passage in the Senate was by unanimous consent. The bill now heads to President Obama’s desk for signing. The National Shooting Sports Foundation hailed passage of the bill and recognized House and Senate sponsors and co-sponsors in its press release.