Newsgroups: rec.guns
From: [email protected] (John Switzer)
Subject: 10,000% Ammo Tax in Mitchell Health Bill
Date: 15 Aug 1994 21:01:10 -0400
Organization: Netcom Online Communications Services (408-241-9760 login: guest)
Message-ID: <[email protected]>
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[To our humble moderator - I noticed the post about this which used my
Rush Limbaugh summaries as a reference, so I thought I'd post the actual text
from the Mitchell bill, if you think it's appropriate.]
       [MODERATOR:  Its fairly short and a decent heads up ... so done.]

Senate Bill S.2357, introduced by George Mitchell August 3 (legislative
day July 20), 1994

                       TITLE VII - REVENUE PROVISIONS

                       PART 4--OTHER PROVISIONS

SEC. 7131. INCREASE IN TAX ON CERTAIN HOLLOW POINT AND LARGE CALIBER
             HANDGUN AMMUNITION.

   (a) Increase in Manufacturers Tax.--
           (1) In general.--Section 4181 (relating to imposition of
       tax on firearms) is amended--
                   (A) by striking ``Shells, and cartridges'' and
               inserting ``Shells and cartridges not taxable at 10,000
               percent'', and
                   (B) by adding at the end the following:
           ``Articles taxable at 10,000 percent.--
                   ``Any jacketed, hollow point projectile which may
               be used in a handgun and the jacket of which is
               designed to produce, upon impact, sharp-tipped, barb-
               like projections that extend beyond the diameter of the
               unfired projectile.
                   ``Any cartridge with a projectile measuring .500
               inch or greater in diameter which may be used in a
               handgun.''
           (2) Additional taxes added to the general fund.--Section
       3(a) of the Act of September 2, 1937 (16 U.S.C. 669b(a)),
       commonly referred to as the ``Pittman-Robertson Wildlife
       Restoration Act'', is amended by adding at the end the
       following new sentence: ``There shall not be covered into the
       fund the portion of the tax imposed by such section 4181 that
       is attributable to any increase in amounts received in the
       Treasury under such section by reason of the amendments made by
       section 7131(a)(1) of the Health Security Act, as estimated by
       the Secretary.''
   (b) Effective Dates.--
           (1) In general.--The amendments made by this section shall
       apply to sales after December 31, 1994.
           (2) Floor stocks tax.--
                   (A) In general.--In the case of any article held on
               January 1, 1995, which is taxable under section 4181 of
               the Internal Revenue Code of 1986 on and after such
               date at a tax rate of 10,000 percent, there is hereby
               imposed a tax equal to the excess of--
                           (i) the tax which would be imposed under
                       section 4181 of such Code if the article were
                       sold on such date, over
                           (ii) the prior tax (if any) imposed under
                       such section on such article.
                   (B) Credit.--Each person shall be allowed as a
               credit against the taxes imposed by subparagraph (A) an
               amount equal to the taxes imposed on articles which
               such person destroys (in such manner as the Secretary
               may prescribe) after December 31, 1994, and before
               April 1, 1995.
                   (C) Payment.--The taxes imposed by subparagraph (A)
               on any article shall be paid by the person holding the
               article on January 1, 1995. Such taxes shall be paid
               before April 1, 1995, in such manner as the Secretary
               of the Treasury may prescribe.
                   (D) Articles in foreign trade zones.--
               Notwithstanding the Act of June 18, 1934 (48 Stat. 998,
               19 U.S.C. 81a) and any other provision of law, any
               article which is located in a foreign trade zone on
               January 1, 1995, shall be subject to the tax imposed by
               subparagraph (A) if--
                           (i) internal revenue taxes have been
                       determined, or customs duties liquidated, with
                       respect to such article before such date
                       pursuant to a request made under the 1st
                       proviso of section 3(a) of such Act, or
                           (ii) such article is held on such date
                       under the supervision of a customs officer
                       pursuant to the 2d proviso of such section
                       3(a).
                   (E) Controlled groups.--Rules similar to the rules
               of section 5061(e)(3) of such Code shall apply for
               purposes of this paragraph.
                   (F) Other laws applicable.--All provisions of law,
               including penalties, applicable with respect to the
               taxes imposed by section 4181 of such Code shall,
               insofar as applicable and not inconsistent with the
               provisions of this subsection, apply to the floor
               stocks taxes imposed by subparagraph (A), to the same
               extent as if such taxes were imposed by such section
               4181. The Secretary may treat any person who bore the
               ultimate burden of the tax imposed by subparagraph (A)
               as the person to whom a credit or refund under such
               provisions may be allowed or made.


--
John Switzer               | "The powerless are always noisy, and the
                          |  completely powerless have been, historically,
CompuServe: 74076,1250     |  completely noisy, at least on Usenet."
Internet: [email protected]   |  -- Mr. Protocol, SunExpert, July 1994