“You may only own a M16 or other fully automatic machine gun that was manufactured and registered with the Bureau of Alcohol, Tobacco, Firearms & Explosives (BATFE) before May 19, 1986. Fully automatic weapons manufactured after that date are not currently legal for civilian ownership. Because of the 1986 cut off, fully automatic weapons that were registered before that date sell for exorbitant prices.
An individual purchasing a “ National Firearms Act Weapon “, NFA weapon or class 3 fully automatic weapon is required to pay a one time, $200 Federal Excise Tax fee. To obtain an NFA weapon, you must first select one. The reason is, forms are required to transfer the weapon from seller to buyer, requiring specific information. There are several types of forms to accommodate these transfers. A form “3”, accommodates dealer to dealer transfers (Class 3, in or out of state). A form “4”, accommodates dealer to individual transfers, within the state. Unlicensed individuals may not transfer class 3 weapons directly into their state. An active Class 3 license is required to execute the transfer. If you hold an active standard FFL, you may transfer the weapon in directly, however the law enforcement signature, photographs, and fingerprint cards are still required, as well as the $200 FET. The form “4” is quite simple. It will be filled out in duplicate by your Class 3 dealer, showing the current owner of the weapon and address, your name and address, description of the weapon and serial number, etc.. You will be given the forms, along with a set of fingerprint cards. On the back of the form is a place for your photograph and your local law enforcement official’s signature. If you are transferring the NFA weapon to your corporation, this Law Enforcement signature is not required. After you have obtained an official signature, return the forms along with your photographs (taped to the back), your fingerprint cards, and your check for $200, (payable to The Department of the Treasury) to your dealer. All of this information, along with the FET fee, will be forwarded to the BATF and they will begin the process of transferring the ownership of the weapon to your name or corporation.”
http://wiki.answers.com/Q/Can_a_civilian_own_a_M16_rifle
Fully automatic weapons manufactured after that date are not currently legal for civilian ownership
This is an incorrect statement. TRANSFER or sale of a firearm manufactured after 1986 is prohibited. Self manufacture of NON-TRANSFERABLE firearms is not prohibited. Still have to have the proper paperwork and tax stamp though.