Assembling an AR lower and upper, manufacturing? ATF says yes.

[adit]

I'm confused about all of this though.

I thought when the lower was manufactured. That is manufacturing.

I also thought that when the gun is built from a finished completed lower, it is assembled.

How can a firearm be manufactured twice?

Once when the lower is manufactured and once when the firearm is completely assembled?

It just seems absurd.

Completely absurd.

Under that definition if you were to disassemble your completed firearm, clean it, and put it back together you have broken the law. Absurd.

 

[ken792]

No, they are not taxed because they are neither a handgun nor a long gun and thus no tax is due if one is produced and sold at retail.

Manufacturers are assessed FAET (the Pittman-Robertson excise tax that was passed in 1937) on all handguns and long guns that they build for commercial purposes. It is not assessed on frames, receivers, "other" firearms, and NFA firearms.

If a Type 07 or 10 FFL purchases a frame or receiver and builds it into a complete handgun or long gun to sell then tax is due. If a Type 01 does the same then tax is still due but a Type 01 dealer has no mechanism to pay it, and thus he gets dinged for tax evasion.

All that said, a Type 01 can sell the stripped receiver to a customer, transfer it out, then take it back in to finish it. Once the receiver is no longer on his books then work he does on it is considered gunsmithing not manufacturing.

Here’s where they say that firearms that are not handguns or long guns are still taxed. Such “other” firearms are at the 11% rate.

“C. Definition of Taxable Articles.

• Firearm. Any portable weapon, such as rifles, carbines, machine guns, shotguns, or fowling pieces from which a shot, bullet or projectile may be discharged by an explosive. See 27 CFR 53.11.”

Here’s where they say receivers fall under “actions” are exempt as components of taxable parts, but not taxable on their own, rather than simply being non-handguns or long guns.

“ D. Components of Taxable Articles.

• Modern firearms firing fixed ammunition.
  • Action
  • Stock
  • Barrel”

TTBGov - Reference Guide

Firearms and Ammunition Excise Tax reference guide.

www.ttb.gov

“Excise tax is not imposed on the separate sale or use of firearm component parts, including a frame or receiver”

https://www.ttb.gov/images/pdfs/faet_importation_information.pdf

 

[GutPile]

That.

There are a LOT of things you can do yourself, that you must get the proper license if you want to be in the business of doing. I can homebrew a shit ton of beer for myself. For friends. For family. For randos on the street. But if I try to sell or barter that beer, I am going to go to federal pound me in the A($ prison. If the state doesn't do it first. I need a brewery license to do that. Even if I am only selling a few gallons.

Feds could bust you for making more than 100 gallons per adult resident in the house. They can suck it though. And good luck finding out where my still is ATF agent reading this thread.

 

[lazarus]

Feds could bust you for making more than 100 gallons per adult resident in the house. They can suck it though. And good luck finding out where my still is ATF agent reading this thread.

Just remember Maryland considers possession of distilling equipment a felony if you don't have a state license. That it is for distilling water is an affirmative defense. Maryland does not allow home distilling like they do home brewing and vinting.

 

[GutPile]

Just remember Maryland considers possession of distilling equipment a felony if you don't have a state license. That it is for distilling water is an affirmative defense. Maryland does not allow home distilling like they do home brewing and vinting.

Yup. State laws on that are pretty draconian all over the country. Hobby scale distilling will get you in the news. Can only imagine the WBAL headlines. Local moonshining gangster with thousands of rounds of ammunition and several firearms arrested with still.

 

[lazarus]

Yup. State laws on that are pretty draconian all over the country. Hobby scale distilling will get you in the news. Can only imagine the WBAL headlines. Local moonshining gangster with thousands of rounds of ammunition and several firearms arrested with still.

With a still and a fifth of home brewed gin!

The horror! The absolute horror!!!

A few states allow it. I haven’t looked in a few years to know how many. I highly doubt any state really gives much of a rat’s behind so long as we are taking actual micro distilling (nano distilling?) where you are talking a 5 gallon pot and still type setup where you are obviously distilling something you’d measure in pints at a time, it gallons.

There is of course the “how do they find out” factor. But the next is, someone would need to be having a real bad day or a grudge to really out the state efforts in to going after you for something that small scale. And I’d imagine a lot of DAs and ADAs probably realize it is likely to be a bad PR case going after someone for a 10-yr (?) felony because they wanted to distill a few pints of gin or moonshine for themselves and family a few times a year. A good way to get real public pressure to just get the law changed or a very sympathetic jury.

Someone with the 100 gallon still in their barn and a long history with the police is probably not going to get such treatment though.

 

[HaveBlue]

The ATF would care deeply that you weren’t paying the taxes. I hear for them, $200 is the magic number.