Chuck Anderson Posted October 23, 2005 Share Posted October 23, 2005 Did I read a news report correctly? The Federal Government is going to stop charging small gunsmiths (less than 50 guns manufactured per year) the Exise tax? If so does anyone know when this will go into effect? It seems like this might make things a lot easier buying a complete gun instead of trying to monkey with sending in the frame only. I know this is one of the things that kept me away from a Brazos. I just didn't like the idea of giving the feds an extra $350.00 on top of the price of a new gun. Link to comment Share on other sites More sharing options...
PhilTerry Posted October 23, 2005 Share Posted October 23, 2005 http://www.ttb.gov/fet/fet_faqs.htm Link to comment Share on other sites More sharing options...
Caspian_45 Posted October 23, 2005 Share Posted October 23, 2005 Yes this is true. Not sure of the date. Link to comment Share on other sites More sharing options...
al503 Posted October 23, 2005 Share Posted October 23, 2005 I can't say for sure but I'm willing to bet that Bob and Ingi sell more than 50 guns a year so it might not apply to them. Link to comment Share on other sites More sharing options...
rubberneck Posted October 23, 2005 Share Posted October 23, 2005 I can't say for sure but I'm willing to bet that Bob and Ingi sell more than 50 guns a year so it might not apply to them. From the BATFE website: As of October 1, 2005, any pistol, revolver, or firearm that was manufactured, produced or imported by a person who manufactures, produces or imports less than an aggregate of 50 such articles during the calendar year is now exempt from the tax. I don't know how many guns Bob makes versus how many STI's he sells. If he makes less than 50 guns a year on frames that he supplies than he is exempt from charging FET on those guns. On the guns from STI FET would still be charged. I could be wrong. Link to comment Share on other sites More sharing options...
XRe Posted October 23, 2005 Share Posted October 23, 2005 On top of that, who's considered the manufacturer by the BATF?? STI or the gunsmith. The "gun" is the frame, per se - the end sales price of that gun is all that is really affected by the gunsmith. Depending on how they interpret it, I could see this making zero difference to the price we pay for the typical competition gun.... Link to comment Share on other sites More sharing options...
rubberneck Posted October 23, 2005 Share Posted October 23, 2005 On top of that, who's considered the manufacturer by the BATF?? STI or the gunsmith. The "gun" is the frame, per se - the end sales price of that gun is all that is really affected by the gunsmith. Depending on how they interpret it, I could see this making zero difference to the price we pay for the typical competition gun.... If you follow Phil Terry's link the ATF has guidelines to determine who the manufacturer is. IN the case of a gun build on a base receiver the gunsmith is considered the manufacturer. Link to comment Share on other sites More sharing options...
Chuck Anderson Posted October 24, 2005 Author Share Posted October 24, 2005 So it looks like the date is Oct 1, 2005. The FET is a fair chunk of money on some custom guns. On handguns it is 11%. This could work out very well from some of the smaller smiths and make them a much cheaper option. As far as Brazos the rule would only apply to the guns he makes from a frame, not the complete STI guns. Or at least that would be my interpretation. Link to comment Share on other sites More sharing options...
BEDELLCUSTOM Posted October 24, 2005 Share Posted October 24, 2005 on handguns it's 10% and long guns it's 11%. Link to comment Share on other sites More sharing options...
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