Sponsors (15)
The bill reduces costs and regulatory burdens for NFA firearm owners, dealers, and federal administrators, while trading off federal excise revenue, a federal tracking/oversight mechanism for regulated firearms, and some consumer-safety/recall avenues.
Firearm buyers and sellers (including dealers) will pay less per transfer because the federal $200 transfer tax on certain NFA transfers is eliminated.
Taxpayers and the Treasury/IRS will face reduced administrative burden because the bill removes the need to collect, remit, and account for the transfer-stamp tax.
Owners and dealers of NFA-regulated firearms will not be subject to new CPSC safety regulation or recall authority under this Act, and the CPSC can remain focused on non-NFA consumer products.
Taxpayers and the federal budget will lose excise revenue because eliminating the transfer tax reduces federal receipts, potentially increasing deficits or reducing funds for programs supported by that revenue.
Law enforcement (federal, state, and local) will lose a federal regulatory/recordkeeping mechanism tied to certain NFA transfers, undermining tracking of regulated weapons and likely shifting enforcement or oversight costs to police agencies.
Victims of harm and consumers will have fewer federal consumer-safety avenues (recalls or safety orders) for NFA firearms, and manufacturers face less regulatory pressure to adopt safety improvements or issue voluntary recalls.
Based on analysis of 3 sections of legislative text.
Repeals the federal transfer tax in 26 U.S.C. § 5811 for firearm transfers and updates related Internal Revenue Code references; preserves that NFA firearms remain outside CPSC jurisdiction.
Official title: Amend the Internal Revenue Code of 1986 to repeal the firearm transfer tax, and for other purposes.
Introduced April 1, 2025 by Thomas Bryant Cotton · Last progress April 1, 2025
Repeals the federal transfer tax imposed by 26 U.S.C. § 5811 on transfers of certain firearms and makes conforming edits in the Internal Revenue Code so references to that tax are removed or updated. The repeal applies to firearm transfers occurring after enactment. The bill also specifies that nothing in the repeal brings firearms regulated under the National Firearms Act (Chapter 53 of the IRC) under the jurisdiction of the U.S. Consumer Product Safety Commission.