The NSSF is continuing its efforts to change the way firearm and ammunition manufacturers pay FAET, a federal excise tax--a change that could save companies $22 million annually.
In May, NSSF announced its support of legislation in the U.S. Senate (S. 632) and House of I Representatives (HR 510) to correct the longstanding inequity in , the frequency with which manufacturers pay the Firearms and Ammunition Excise Tax (FAET).
Currently, firearm and ammunition manufacturers must pay the FAET biweekly. Companies in other industries pay the tax quarterly.
"Singling out the firearms industry for tax payments every two weeks is bureaucratic and discriminatory," said Sen. Mike Crapo (R-Idaho).
Sen. Max Baucus (D-Mont.) said of the proposed change, "This is the right thing to do. It will help cut bureaucratic red tape and help the firearm industry save resources. This will ensure the gun industry is treated fairly."
According to NSSF, the biweekly payment schedule forces many manufacturers to borrow money to ensure on-time payment. Plus, companies spend thousands of extra man-hours handling the more-frequent paperwork. NSSF notes that...