Newsgroups: rec.guns From: jrs@netcom.com (John Switzer) Subject: 10,000% Ammo Tax in Mitchell Health Bill Date: 15 Aug 1994 21:01:10 -0400 Organization: Netcom Online Communications Services (408-241-9760 login: guest) Message-ID: <32p34m$jil@xring.cs.umd.edu> Lines: 103 [To our humble moderator - I noticed the post about this which used my Rush Limbaugh summaries as a reference, so I thought I'd post the actual text from the Mitchell bill, if you think it's appropriate.] [MODERATOR: Its fairly short and a decent heads up ... so done.] Senate Bill S.2357, introduced by George Mitchell August 3 (legislative day July 20), 1994 TITLE VII - REVENUE PROVISIONS PART 4--OTHER PROVISIONS SEC. 7131. INCREASE IN TAX ON CERTAIN HOLLOW POINT AND LARGE CALIBER HANDGUN AMMUNITION. (a) Increase in Manufacturers Tax.-- (1) In general.--Section 4181 (relating to imposition of tax on firearms) is amended-- (A) by striking ``Shells, and cartridges'' and inserting ``Shells and cartridges not taxable at 10,000 percent'', and (B) by adding at the end the following: ``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, sharp-tipped, barb- like projections that extend beyond the diameter of the unfired projectile. ``Any cartridge with a projectile measuring .500 inch or greater in diameter which may be used in a handgun.'' (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 7131(a)(1) of the Health Security Act, as estimated by the Secretary.'' (b) Effective Dates.-- (1) In general.--The amendments made by this section shall apply to sales after December 31, 1994. (2) Floor stocks tax.-- (A) In general.--In the case of any article held on January 1, 1995, which is taxable under section 4181 of the Internal Revenue Code of 1986 on and after such date at a tax rate of 10,000 percent, there is hereby imposed a tax equal to the excess of-- (i) the tax which would be imposed under section 4181 of such Code if the article were sold on such date, over (ii) the prior tax (if any) imposed under such section on such article. (B) Credit.--Each person shall be allowed as a credit against the taxes imposed by subparagraph (A) an amount equal to the taxes imposed on articles which such person destroys (in such manner as the Secretary may prescribe) after December 31, 1994, and before April 1, 1995. (C) Payment.--The taxes imposed by subparagraph (A) on any article shall be paid by the person holding the article on January 1, 1995. Such taxes shall be paid before April 1, 1995, in such manner as the Secretary of the Treasury may prescribe. (D) Articles in foreign trade zones.-- Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) and any other provision of law, any article which is located in a foreign trade zone on January 1, 1995, shall be subject to the tax imposed by subparagraph (A) if-- (i) internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act, or (ii) such article is held on such date under the supervision of a customs officer pursuant to the 2d proviso of such section 3(a). (E) Controlled groups.--Rules similar to the rules of section 5061(e)(3) of such Code shall apply for purposes of this paragraph. (F) 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 subparagraph (A), to the same extent as if such taxes were imposed by such section 4181. The Secretary may treat any person who bore the ultimate burden of the tax imposed by subparagraph (A) as the person to whom a credit or refund under such provisions may be allowed or made. -- John Switzer | "The powerless are always noisy, and the | completely powerless have been, historically, CompuServe: 74076,1250 | completely noisy, at least on Usenet." Internet: jrs@netcom.com | -- Mr. Protocol, SunExpert, July 1994