Date: 16 Jan 1995 07:11:40 -0800 From: "Johann Opitz" Subject: Moynihan S124- to increase To: "Firearms Alert" Reposted from t.p.g. - ==================================================== S 124 IS 104th CONGRESS 1st Session S. 124 To amend the Internal Revenue Code of 1986 to increase the tax on handgun ammunition, to impose the special occupational tax and registration requirements on importers and manufacturers of handgun ammunition, and for other purposes. IN THE SENATE OF THE UNITED STATES January 4, 1995 Mr. Moynihan introduced the following bill; which was read twice and referred to the Committee on Finance ------------------------------------------------------------------------ A BILL To amend the Internal Revenue Code of 1986 to increase the tax on handgun ammunition, to impose the special occupational tax and registration requirements on importers and manufacturers of handgun ammunition, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the `Real Cost of Destructive Ammunition Act'. SEC. 2. INCREASE IN TAX ON HANDGUN AMMUNITION. (a) Increase in Manufacturers Tax.-- (1) In general.--Section 4181 of the Internal Revenue Code of 1986 (relating to imposition of tax on firearms ) is amended-- (A) by striking `Shells, and cartridges' and inserting `Shells and cartridges not taxable or 10,000 percent'. `Articles taxable at 10,000 percent.-- `Any jacketed, hollow point projectile which may be used in a handgun and the jacket of which is designed to produce, upon impact, evenly-spaced sharp or barb-like projections that extend beyond the diameter of the unfired projectile.'. (2) Additional taxes added to the general fund.--Section 3(a) of the Act of September 2, 1937 (16 U.S.C. 669b(a)), commonly referred to as the `Pittman-Robertson Wildlife Restoration Act', is amended by adding at the end the following new sentence: `There shall not be covered into the fund the portion of the tax imposed by such section 4181 that is attributable to any increase in amounts received in the Treasury under such section by reason of the amendments made by section 2(a)(1) of the Real Cost of Handgun Ammunition Act, as estimated by the Secretary.'. SEC. 3. SPECIAL TAX FOR IMPORTERS, MANUFACTURERS, AND DEALERS OF HANDGUN AMMUNITION. (a) In General.-- (1) Imposition of tax.--Section 5801 of the Internal Revenue Code of 1986 (relating to special occupational tax on importers, manufacturers, and dealers of machine guns , destructive devices, and certain other firearms ) is amended by adding at the end the following new subsection: `(c) Special Rule for Handgun Ammunition.-- `(1) In general.--On first engaging in business and thereafter on or before July 1 of each year, every importer and manufacturer of handgun ammunition shall pay a special (occupational) tax for each place of business at the rate of $10,000 a year or fraction thereof. `(2) Handgun ammunition defined.--For purposes of this part, the term `handgun ammunition' shall mean any centerfire cartridge which has a cartridge case of less than 1.3 inches in length and any cartridge case which is less than 1.3 inches in length.'. (2) Registration of importers and manufacturers of handgun ammunition.--Section 5802 of the Internal Revenue Code of 1986 (relating to registration of importers, manufacturers, and dealers) is amended-- (A) in the first sentence, by inserting `, and each importer and manufacturer of handgun ammunition,' after `dealer in firearms ', and (B) in the third sentence, by inserting `, and handgun ammunition operations of an importer or manufacturer,' after `dealer'. (b) Conforming Amendments.-- (1) Chapter heading.--Chapter 53 of the Internal Revenue Code of 1986 (relating to machine guns , destructive devices, and certain other firearms ) is amended in the chapter heading by inserting `HANDGUN AMMUNITION,' after `CHAPTER 53--'. (2) Table of chapters.--The heading for chapter 53 in the table of chapters for subtitle E of such Code is amended to read as follows: `Chapter 53--Handgun ammunition, machine guns , destructive devices, and certain other firearms .' (c) Effective Date.-- (1) In general.--The amendments made by this section shall take effect on July 1, 1995. (2) All taxpayers treated as commencing in business on july 1, 1995.--Any person engaged on July 1, 1994, in any trade or business which is subject to an occupational tax by reason of the amendment made by subsection (a)(1) shall be treated for purposes of such tax as having 1st engaged in a trade of business on such date. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ == Johann Opitz e-mail: johann_opitz@smtp.svl.trw.com == == All Disclaimers Apply (so as to protect my employer) ==