Firearm Industry Fairness Act
This bill imposes a 20% surtax on the total revenue of each semi-automatic assault weapon manufacturer or importer. The bill defines semi-automatic assault weapon to include a semiautomatic rifle that has a fixed ammunition feeding device with the capacity to accept more than 15 rounds, semiautomatic pistols and shotguns, and other identified assault weapons.
The bill establishes the Community Violence Intervention and Prevention Trust Fund to hold tax revenues generated by this bill to carry out the Bureau of Justice Assistance Community Violence Intervention and Prevention Initiative to prevent and reduce violent crime in communities.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8741 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 8741
To amend the Internal Revenue Code of 1986 to impose a tax on the total
revenue of manufacturers and importers of semi-automatic assault
weapons.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 23, 2022
Mrs. Carolyn B. Maloney of New York introduced the following bill;
which was referred to the Committee on Ways and Means, and in addition
to the Committee on the Judiciary, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to impose a tax on the total
revenue of manufacturers and importers of semi-automatic assault
weapons.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; FINDINGS.
(a) Short Title.--This Act may be cited as the ``Firearm Industry
Fairness Act''.
(b) Findings.--Congress finds the following:
(1) AR-15s are abnormally dangerous weapons meant for the
battlefield. AR-15-style rifles have been the weapon of choice
for the killers responsible for the deadliest mass shootings in
American history, including the recent mass murders in Buffalo,
New York, Uvalde, Texas, and Highland Park, Illinois.
(2) Major gun manufacturers have been enjoying record-
breaking sales and profits from AR-15-style rifles, even as gun
deaths and mass shootings have risen in the United States.
Studies have shown that gun violence and the human and economic
toll associated with the more than 40,000 annual firearm deaths
in America are strongly correlated with the availability of
firearms.
(3) Large capacity magazines have been shown to lead to
increasingly deadly mass shootings because they allow the
shooter to continue firing for longer periods of time and
reduce the opportunities for law enforcement or other
bystanders to intervene to stop the killing.
(4) Despite widespread diversion of weapons from major
manufacturers to unlawful use, the firearm industry has failed
to monitor the downstream distribution of their weapons to
distributors or other sellers, with the result that an
inordinate number of guns used in crimes of violence are
funneled through a small number of dealers.
(5) An investigation into the gun industry's practices and
profits by the Committee on Oversight and Reform found that
five leading gun manufacturer's collected more than
$1,000,000,000 from the sale of AR-15-style weapons in the last
decade.
SEC. 2. TAX ON TOTAL REVENUE OF MANUFACTURERS AND IMPORTERS OF SEMI-
AUTOMATIC ASSAULT WEAPONS.
(a) In General.--Subtitle A of the Internal Revenue Code of 1986 is
amended by inserting after chapter 6 the following new chapter:
``CHAPTER 7--MANUFACTURERS AND IMPORTERS OF SEMI-AUTOMATIC ASSAULT
WEAPONS
``Sec. 1571. Imposition of tax on total revenue.
``SEC. 1571. IMPOSITION OF TAX ON TOTAL REVENUE.
``(a) In General.--There is hereby imposed (in addition to any
other tax imposed by this title) for each taxable year a tax equal to
20 percent of the total revenue of each semi-automatic assault weapons
manufacturer or importer.
``(b) Total Revenue.--For purposes of this section, the term `total
revenue' means total gross receipts reduced by the cost of goods sold.
``(c) Semi-Automatic Assault Weapons Manufacturer or Importer.--For
purposes of this section--
``(1) In general.--The term `semi-automatic assault weapons
manufacturer or importer' means, with respect to any taxable
year, any manufacturer, producer, or importer (within the
meaning of section 4181) of any semi-automatic assault weapon
or large capacity ammunition feeding device, and any person
related to any such manufacturer, producer, or importer, if the
aggregate number of semi-automatic assault weapons and large
capacity ammunition feeding devices manufactured, produced, or
imported by such manufacturer, producer, or importer (and all
persons related to such manufacturer, produce, or importer)
during such taxable year exceeds 100.
``(2) Exception.--For purposes of determining under
paragraph (1) the number of such weapons and devices
manufactured, produced, or imported by any person, there shall
not be taken into account any such weapon or device
manufactured, produced, or imported solely for use by the
United States Government, any State or local government, or any
department, agency, or political subdivision thereof. The
Secretary shall prescribe such regulations and other guidance
as is necessary to prevent avoidance of the purposes of this
paragraph.
``(3) Related persons.--A person shall be treated as
related to another person if such person is in the same
controlled group (within the meaning of section 1563(a),
applied by substituting `more than 50 percent' for `at least 80
percent' each place it appears therein) as such other person.
Under regulations or other guidance prescribed by the
Secretary, principles similar to the principles of the
preceding sentence shall apply to a group of persons under
common control where 1 or more of such persons is not a
corporation.
``(d) Semi-Automatic Assault Weapons; Large Capacity Ammunition
Feeding Device.--For purposes of this section--
``(1) Semi-automatic assault weapon.--The term `semi-
automatic assault weapon' means any of the following,
regardless of country of manufacture or caliber of ammunition
accepted:
``(A) A semiautomatic rifle that--
``(i) has the capacity to accept a
detachable ammunition feeding device; and
``(ii) has any 1 of the following:
``(I) A pistol grip.
``(II) A forward grip.
``(III) A folding, telescoping, or
detachable stock, or a stock that is
otherwise foldable or adjustable in a
manner that operates to reduce the
length, size, or any other dimension,
or otherwise enhances the
concealability, of the weapon.
``(IV) A grenade launcher.
``(V) A barrel shroud.
``(VI) A threaded barrel.
``(B) A semiautomatic rifle that has a fixed
ammunition feeding device with the capacity to accept
more than 15 rounds, except for an attached tubular
device designed to accept, and capable of operating
only with, .22 caliber rimfire ammunition.
``(C) Any part, combination of parts, component,
device, attachment, or accessory that is designed or
functions to accelerate the rate of fire of a
semiautomatic firearm but not convert the semiautomatic
firearm into a machinegun.
``(D) A semiautomatic pistol that--
``(i) has an ammunition feeding device that
is not a fixed ammunition feeding device; and
``(ii) has any 1 of the following:
``(I) A threaded barrel.
``(II) A second pistol grip.
``(III) A barrel shroud.
``(IV) The capacity to accept a
detachable ammunition feeding device at
some location outside of the pistol
grip.
``(V) A semiautomatic version of an
automatic firearm.
``(VI) A manufactured weight of 50
ounces or more when unloaded.
``(VII) A buffer tube, stabilizing
brace or similar component that
protrudes horizontally behind the
pistol grip, and is designed or
redesigned to allow or facilitate a
firearm to be fired from the shoulder.
``(E) A semiautomatic pistol with a fixed
ammunition feeding device that has the capacity to
accept more than 15 rounds.
``(F) A semiautomatic shotgun that--
``(i) has the capacity to accept a
detachable ammunition feeding device or a fixed
ammunition feeding device that has the capacity
to accept more than 5 rounds; and
``(ii) has any 1 of the following:
``(I) A folding, telescoping, or
detachable stock.
``(II) A pistol grip or bird's head
grip.
``(III) A forward grip.
``(IV) A grenade launcher.
``(G) Any shotgun with a revolving cylinder.
``(H) All of the following rifles, copies,
duplicates, variants, or altered facsimiles with the
capability of any such weapon thereof:
``(i) All AK types, including the
following:
``(I) AK, AK47, AK47S, AK-74, AKM,
AKS, ARM, MAK90, MISR, NHM90, NHM91,
Rock River Arms LAR-47, SA85, SA93,
Vector Arms AK-47, VEPR, WASR-10, and
WUM.
``(II) IZHMASH Saiga AK.
``(III) MAADI AK47 and ARM.
``(IV) Norinco 56S, 56S2, 84S, and
86S.
``(V) Poly Technologies AK47 and
AKS.
``(VI) SKS with a detachable
ammunition feeding device.
``(ii) All AR types, including the
following:
``(I) AR-10.
``(II) AR-15.
``(III) Alexander Arms Overmatch
Plus 16.
``(IV) Armalite M15 22LR Carbine.
``(V) Armalite M15-T.
``(VI) Barrett REC7.
``(VII) Beretta AR-70.
``(VIII) Black Rain Ordnance Recon
Scout.
``(IX) Bushmaster ACR.
``(X) Bushmaster Carbon 15.
``(XI) Bushmaster MOE series.
``(XII) Bushmaster XM15.
``(XIII) Chiappa Firearms MFour
rifles.
``(XIV) Colt Match Target rifles.
``(XV) CORE Rifle Systems CORE15
rifles.
``(XVI) Daniel Defense M4A1 rifles.
``(XVII) Devil Dog Arms 15 Series
rifles.
``(XVIII) Diamondback DB15 rifles.
``(XIX) DoubleStar AR rifles.
``(XX) DPMS Tactical rifles.
``(XXI) DSA Inc. ZM-4 Carbine.
``(XXII) Heckler & Koch MR556.
``(XXIII) High Standard HSA-15
rifles.
``(XXIV) Jesse James Nomad AR-15
rifle.
``(XXV) Knight's Armament SR-15.
``(XXVI) Lancer L15 rifles.
``(XXVII) MGI Hydra Series rifles.
``(XXVIII) Mossberg MMR Tactical
rifles.
``(XXIX) Noreen Firearms BN 36
rifle.
``(XXX) Olympic Arms.
``(XXXI) POF USA P415.
``(XXXII) Precision Firearms AR
rifles.
``(XXXIII) Remington R-15 rifles.
``(XXXIV) Rhino Arms AR rifles.
``(XXXV) Rock River Arms LAR-15.
``(XXXVI) Sig Sauer SIG516 rifles
and MCX rifles.
``(XXXVII) Smith & Wesson M&P15
rifles.
``(XXXVIII) Stag Arms AR rifles.
``(XXXIX) Sturm, Ruger & Co. SR556
and AR-556 rifles.
``(XL) Uselton Arms Air-Lite M-4
rifles.
``(XLI) Windham Weaponry AR rifles.
``(XLII) WMD Guns Big Beast.
``(XLIII) Yankee Hill Machine
Company, Inc. YHM-15 rifles.
``(iii) Barrett M107A1.
``(iv) Barrett M82A1.
``(v) Beretta CX4 Storm.
``(vi) Calico Liberty Series.
``(vii) CETME Sporter.
``(viii) Daewoo K-1, K-2, Max 1, Max 2, AR
100, and AR 110C.
``(ix) Fabrique Nationale/FN Herstal FAL,
LAR, 22 FNC, 308 Match, L1A1 Sporter, PS90,
SCAR, and FS2000.
``(x) Feather Industries AT-9.
``(xi) Galil Model AR and Model ARM.
``(xii) Hi-Point Carbine.
``(xiii) HK-91, HK-93, HK-94, HK-PSG-1, and
HK USC.
``(xiv) IWI TAVOR, Galil ACE rifle.
``(xv) Kel-Tec Sub-2000, SU-16, and RFB.
``(xvi) SIG AMT, SIG PE-57, Sig Sauer SG
550, Sig Sauer SG 551, and SIG MCX.
``(xvii) Springfield Armory SAR-48.
``(xviii) Steyr AUG.
``(xix) Sturm, Ruger & Co. Mini-14 Tactical
Rifle M-14/20CF.
``(xx) All Thompson rifles, including the
following:
``(I) Thompson M1SB.
``(II) Thompson T1100D.
``(III) Thompson T150D.
``(IV) Thompson T1B.
``(V) Thompson T1B100D.
``(VI) Thompson T1B50D.
``(VII) Thompson T1BSB.
``(VIII) Thompson T1-C.
``(IX) Thompson T1D.
``(X) Thompson T1SB.
``(XI) Thompson T5.
``(XII) Thompson T5100D.
``(XIII) Thompson TM1.
``(XIV) Thompson TM1C.
``(xxi) UMAREX UZI rifle.
``(xxii) UZI Mini Carbine, UZI Model A
Carbine, and UZI Model B Carbine.
``(xxiii) Valmet M62S, M71S, and M78.
``(xxiv) Vector Arms UZI Type.
``(xxv) Weaver Arms Nighthawk.
``(xxvi) Wilkinson Arms Linda Carbine.
``(I) All of the following pistols, copies,
duplicates, variants, or altered facsimiles with the
capability of any such weapon thereof:
``(i) All AK types, including the
following:
``(I) Centurion 39 AK pistol.
``(II) CZ Scorpion pistol.
``(III) Draco AK-47 pistol.
``(IV) HCR AK-47 pistol.
``(V) IO Inc. Hellpup AK-47 pistol.
``(VI) Krinkov pistol.
``(VII) Mini Draco AK-47 pistol.
``(VIII) PAP M92 pistol.
``(IX) Yugo Krebs Krink pistol.
``(ii) All AR types, including the
following:
``(I) American Spirit AR-15 pistol.
``(II) Bushmaster Carbon 15 pistol.
``(III) Chiappa Firearms M4 Pistol
GEN II.
``(IV) CORE Rifle Systems CORE15
Roscoe pistol.
``(V) Daniel Defense MK18 pistol.
``(VI) DoubleStar Corporation AR
pistol.
``(VII) DPMS AR-15 pistol.
``(VIII) Jesse James Nomad AR-15
pistol.
``(IX) Olympic Arms AR-15 pistol.
``(X) Osprey Armament MK-18 pistol.
``(XI) POF USA AR pistols.
``(XII) Rock River Arms LAR 15
pistol.
``(XIII) Uselton Arms Air-Lite M-4
pistol.
``(iii) Calico pistols.
``(iv) DSA SA58 PKP FAL pistol.
``(v) Encom MP-9 and MP-45.
``(vi) Heckler & Koch model SP-89 pistol.
``(vii) Intratec AB-10, TEC-22 Scorpion,
TEC-9, and TEC-DC9.
``(viii) IWI Galil Ace pistol, UZI PRO
pistol.
``(ix) Kel-Tec PLR 16 pistol.
``(x) All MAC types, including the
following:
``(I) MAC-10.
``(II) MAC-11.
``(III) Masterpiece Arms MPA A930
Mini Pistol, MPA460 Pistol, MPA
Tactical Pistol, and MPA Mini Tactical
Pistol.
``(IV) Military Armament Corp.
Ingram M-11.
``(V) Velocity Arms VMAC.
``(xi) Sig Sauer P556 pistol.
``(xii) Sites Spectre.
``(xiii) All Thompson types, including the
following:
``(I) Thompson TA510D.
``(II) Thompson TA5.
``(xiv) All UZI types, including Micro-UZI.
``(J) All of the following shotguns, copies,
duplicates, variants, or altered facsimiles with the
capability of any such weapon thereof:
``(i) DERYA Anakon MC-1980, Anakon SD12.
``(ii) Doruk Lethal shotguns.
``(iii) Franchi LAW-12 and SPAS 12.
``(iv) All IZHMASH Saiga 12 types,
including the following:
``(I) IZHMASH Saiga 12.
``(II) IZHMASH Saiga 12S.
``(III) IZHMASH Saiga 12S EXP-01.
``(IV) IZHMASH Saiga 12K.
``(V) IZHMASH Saiga 12K-030.
``(VI) IZHMASH Saiga 12K-040
Taktika.
``(v) Streetsweeper.
``(vi) Striker 12.
``(K) All belt-fed semiautomatic firearms,
including TNW M2HB and FN M2495.
``(L) Any combination of parts from which a firearm
described in subparagraphs (A) through (K) can be
assembled.
``(M) The frame or receiver of a rifle or shotgun
described in subparagraph (G), (H), (J), or (K).
``(2) Large capacity ammunition feeding device.--The term
`large capacity ammunition feeding device'--
``(A) means a magazine, belt, drum, feed strip, or
similar device, including any such device joined or
coupled with another in any manner, that has an overall
capacity of, or that can be readily restored, changed,
or converted to accept, more than 15 rounds of
ammunition; and
``(B) does not include an attached tubular device
designed to accept, and capable of operating only with,
.22 caliber rimfire ammunition.
``(3) Other definitions.--
``(A) Semiautomatic pistol.--The term
`semiautomatic pistol' means any repeating pistol
that--
``(i) utilizes a portion of the energy of a
firing cartridge to extract the fired cartridge
case and chamber the next round; and
``(ii) requires a separate pull of the
trigger to fire each cartridge.
``(B) Semiautomatic shotgun.--The term
`semiautomatic shotgun' means any repeating shotgun
that--
``(i) utilizes a portion of the energy of a
firing shell to extract the fired shell casing
and chamber the next round; and
``(ii) requires a separate pull of the
trigger to fire each shell.
``(C) Barrel shroud.--The term `barrel shroud'--
``(i) means a shroud that is attached to,
or partially or completely encircles, the
barrel of a firearm so that the shroud protects
the user of the firearm from heat generated by
the barrel; and
``(ii) does not include--
``(I) a slide that partially or
completely encloses the barrel; or
``(II) an extension of the stock
along the bottom of the barrel which
does not encircle or substantially
encircle the barrel.
``(D) Detachable ammunition feeding device.--The
term `detachable ammunition feeding device' means an
ammunition feeding device that can be removed from a
firearm without disassembly of the firearm action.
``(E) Fixed ammunition feeding device.--The term
`fixed ammunition feeding device' means an ammunition
feeding device that is contained in and not removable
from or is permanently fixed to the firearm, but does
not include an attached tubular device designed to
accept, and capable of operating only with, .22 caliber
rimfire ammunition.
``(F) Folding, telescoping, or detachable stock.--
The term `folding, telescoping, or detachable stock'
means a stock that folds, telescopes, detaches or
otherwise operates to reduce the length, size, or any
other dimension, or otherwise enhances the
concealability, of a firearm.
``(G) Forward grip.--The term `forward grip' means
a grip located forward of the trigger that functions as
a pistol grip.
``(H) Grenade launcher.--The term `grenade
launcher' means an attachment for use on a firearm that
is designed to propel a grenade or other similar
destructive device.
``(I) Pistol grip.--The term `pistol grip' means a
grip, a thumbhole stock or Thordsen-type grip or stock,
or any other characteristic that can function as a
grip.
``(J) Threaded barrel.--The term `threaded barrel'
means a feature or characteristic that is designed in
such a manner to allow for the attachment of a device
such as a firearm silencer or a flash suppressor.
``(K) Belt-fed semiautomatic firearm.--The term
`belt-fed semiautomatic firearm' means any repeating
firearm that--
``(i) utilizes a portion of the energy of a
firing cartridge to extract the fired cartridge
case and chamber the next round;
``(ii) requires a separate pull of the
trigger to fire each cartridge; and
``(iii) has the capacity to accept a belt
ammunition feeding device.
``(L) Other terms.--Terms used in this subsection
which are also used in section 921 of title 18, United
States Code, shall have the same meaning as when used
in such section.''.
(b) Clerical Amendment.--The table of chapters for subtitle A of
such Code is amended by inserting after the item relating to chapter 6
the following new item:
``Chapter 7. Manufacturers and Importers of Semi-Automatic Assault
Weapons.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 3. FUNDING COMMUNITY VIOLENCE INTERVENTION AND PREVENTION.
(a) Community Violence Intervention and Prevention Trust Fund.--
Subchapter A of chapter 98 is amended by adding at the end the
following new section:
``SEC. 9512. COMMUNITY VIOLENCE INTERVENTION AND PREVENTION 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 `Community
Violence Intervention and Prevention Trust Fund', consisting of such
amounts as may be appropriated or credit to such Trust Fund as provided
in this section or section 9602(b).
``(b) Transfers to Trust Fund.--There are hereby appropriated to
the Community Violence Intervention and Prevention Trust Fund amounts
equivalent to taxes received in the Treasury under section 1571.
``(c) Expenditures.--Amounts in the Community Violence Intervention
and Prevention Trust Fund shall be available, as provided by
appropriations Acts, for making expenditures to carry out the Bureau of
Justice Assistance Community Violence Intervention and Prevention
Initiative.''.
(b) Clerical Amendment.--The table of sections for subchapter A of
chapter 98 of such Code is amended by adding at the end the following
new item:
``Sec. 9512. Community Violence Intervention and Prevention Trust
Fund.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Crime, Terrorism, and Homeland Security.
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