Skip to comments.Quarterly Firearm and Ammunition Excise Taxes Up 43%
Posted on 07/31/2009 2:27:42 PM PDT by jazusamo
NEWTOWN, Conn., July 31 /PRNewswire-USNewswire/ -- During a time period of great economic uncertainty, firearm and ammunition sales have continued to increase throughout the country.
According to the most recent Firearms and Ammunition Excise Tax Collection Report, released earlier today by the Department of the Treasury, firearm and ammunition manufacturers paid more than $109.8 million in the first calendar quarter of 2009; up 43% over the same time period reported in 2008.
This dramatic increase follows a 31.3 percent increase in excise taxes from the previous quarter (4Q, 2008) and eight straight months of increased FBI background checks - another strong indicator of firearm sales.
A third reliable source, the National Sporting Goods Association (NSGA), reported that in 2008, "Hunting and Firearms" equipment was the only category to grow double digits and only one of seven categories that exhibited growth. NSGA's forecast for 2009 shows "Hunting and Firearms" as one of only two categories to exhibit growth.
Manufacturers of firearms and ammunition pay a federal excise tax -- a major source of wildlife conservation funding -- on all firearms and ammunition manufactured (11% on long guns and ammunition and 10% on handguns).
This latest excise tax report, which covers the time period of January 1, 2009 through March 31, 2009, shows that $33.0 million was collected in taxes for pistols and revolvers, $38.9 million for long guns and $37.8 million for ammunition. Compared to the same quarter in 2008, collections were up 65.5% for handguns, 42.9% for ammunition and 28.3% for long guns.
Translation to sales:
Using the latest collections as an indicator of sales, a projection of $1.03 billion was generated in the first quarter (calendar year) of 2009. Please keep in mind that although excise taxes are one of the best indicators of industry performance, they only report what the manufacturers paid in taxes and do NOT reflect retail mark-up and final retail sales.
Pistols and revolvers: $33,043,554.83 / .10 = $330,435,548.30 = $330.4 million for handguns
Long guns: $38,979,972.16 / .11 = $354,363,383.27 = $354.3 million for long guns
Ammunition: $37,846,038.52 / .11 = $344,054,895.64 = $344.0 million for ammunition
Total estimation for the quarter: $1.028 billion
SOURCE National Shooting Sports Foundation
Gee, I wonder why?
Headline is somewhat misleading, as is the article. Should state “excise tax COLLECTIONS” are up XX%. Otherwise one is led to think that government has increased the tax on firearms, which, although I’m sure they would like to, they have not yet done.
Doubt if it was due to an increase in hunting and shooting sports. :)
“The right to keep and bear arms shall not be infringed” - US Constitution, Amendment 2: this means what it says, Connecticut. Taxation of firearms or the ammunition upon which their use depends constitutes an “infringement”. Words mean things. People who wish to stay free need to mean them, too.
This is not Conn., it’s the federal excise tax.
Good one, that’s a keeper.
I’ve done my part!
You’ve outdone me, just ammo for me. :-)
I see that now. Properly interpreted, the Constitution would forbid it. I look forward to a time when we regain all the freedoms we citizens have ceded by default or by neglect.
All 3 for me too.
Hopefully, several more individual States will take the lead of those States making “State use” ammunition. While the ATF is adamant that all weapons and ammunition are under its control, this is another 10th Amendment issue, and an important one.
But more than that, by having in-State production of ammunition, the State can help alleviate ammunition shortages, with a no-cost encouragement for a manufacturer to begin production in the State, and encouraging gun owners to buy State produced ammunition, as a matter of “State pride”.
Individual States could further assist the process by encouraging firearms training and use. Authorizing franchised shooting ranges on State land, and creating a State school rifle club competition, would be a big help in having a comprehensive strategy.
Agreed, and sadly those freedoms being lost are in all aspects of life.
OMG! The only tax that is paying off! Priceless! LOL
Good points and the states should be handling this, IMO.
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