Sponsors (15)
The bill reduces costs and paperwork for NFA firearm owners, dealers, and the federal government while removing a revenue stream and narrowing federal tracking and consumer-safety oversight for regulated firearms, trading regulatory burden and income for potential enforcement and safety gaps.
Firearm buyers, sellers, and dealers will no longer pay the federal NFA transfer tax and dealers avoid the $200-per-transfer remittance, reducing per-transfer costs and simplifying compliance for owners and small firearm businesses.
The bill removes the administrative burden of collecting and accounting for the transfer-stamp tax from transferors and the Treasury/IRS, reducing paperwork and federal administrative costs.
The Consumer Product Safety Commission (CPSC) will not gain new authority over NFA-regulated firearms under this Act, avoiding new federal safety-regulation or recall authority for those weapons and allowing CPSC to keep resources focused on other consumer products.
Eliminating the federal transfer tax will reduce federal excise revenue, which could modestly increase deficits or reduce funding for programs financed by that revenue.
Removing the transfer-tax/transfer-stamp system eliminates a federal recordkeeping mechanism tied to certain regulated-weapon transfers, making federal tracking and investigation of those transfers harder and potentially shifting enforcement or oversight costs onto state and local law enforcement.
Preventing CPSC authority over NFA firearms reduces federal consumer-safety avenues for recalls or safety orders and removes a regulatory incentive for manufacturers to adopt safety-related design changes or issue voluntary recalls, potentially increasing safety risks for victims and users.
Based on analysis of 3 sections of legislative text.
Repeals the federal firearm transfer excise tax and stamp requirement (26 U.S.C. § 5811), updates related code references, and preserves CPSC exclusion for NFA firearms.
Introduced April 1, 2025 by Thomas Bryant Cotton · Last progress April 1, 2025
Repeals the federal transfer excise tax on firearms in the Internal Revenue Code (26 U.S.C. § 5811), removes the stamp-based payment requirement for transfers, and updates related code cross-references so they no longer point to that section. It also states that nothing in the law should be read to give the U.S. Consumer Product Safety Commission authority over firearms already regulated under the National Firearms Act (Chapter 53). The tax repeal and conforming edits take effect for firearm transfers after the date of enactment.