[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3245 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3245

   To amend the Internal Revenue Code of 1986 to increase the tax on 
                               firearms.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 7, 1993

Mr. Reynolds introduced the following bill; which was referred jointly 
      to the Committees on Ways and Means and Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to increase the tax on 
                               firearms.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INCREASE IN TAX ON AMMUNITION.

    (a) General Rule.--Section 4181 of the Internal Revenue Code of 
1986 (relating to imposition of tax) is amended by striking all that 
follows ``so sold:'' and inserting the following:
            ``Articles taxable at 35 percent--
                    Pistols, revolvers, and other firearms.
            ``Articles taxable at 11 percent--
                    Shells, and cartridges.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the 1st day of the 1st calendar month beginning more 
than 30 days after the date of the enactment of this Act.
    (c) Floor Stocks Tax.--
            (1) Imposition of tax.--In the case of any firearm on which 
        tax was imposed under section 4181 of the Internal Revenue Code 
        of 1986 before the tax-increase date and which is held on such 
        date for sale by any dealer, there is hereby imposed a floor 
        stocks tax on such firearm.
            (2) Amount of tax.--The amount of tax imposed by paragraph 
        (1) with respect to any firearm shall be equal to the excess 
        of--
                    (A) the amount of the tax which would have been 
                imposed under section 4181 of such Code on the sale by 
                the manufacturer, producer, or importer of such firearm 
                if the amendment made by subsection (a) had been 
                applicable in determining the amount of such tax, over
                    (B) the amount of tax actually under section 4181 
                of such Code with respect to such firearm before the 
                tax-increase date.
            (3) Liability for tax and method of payment.--
                    (A) Liability for tax.--Any dealer holding any 
                firearm on the tax-increase date to which any tax 
                imposed by paragraph (1) applies shall be liable for 
                such tax.
                    (B) Method of payment.--The tax imposed by 
                paragraph (1) shall be paid in such manner as the 
                Secretary of the Treasury or his delegate shall 
                prescribe by regulations.
                    (C) Time for payment.--The tax imposed by paragraph 
                (1) shall be paid before the close of the 6-month 
                period beginning on the tax-increase date.
            (4) Definitions.--For purposes of this subsection--
                    (A) Tax-increase date.--The term ``tax-increase 
                date'' means the 1st day of the 1st calendar month 
                beginning more than 30 days after the date of the 
                enactment of this Act.
                    (B) Firearm.--The term `firearm'' means any pistol, 
                revolver, or other firearm.
            (5) 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 
        paragraph (1), to the same extent as if such taxes were imposed 
        by such section 4181.

SEC. 2. HOSPITAL GUNSHOT COST RELIEF TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to trust fund code) is amended by adding at the 
end thereof the following new section:

``SEC. 9512. HOSPITAL GUNSHOT COST RELIEF TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Hospital Gunshot 
Cost Relief Trust Fund', consisting of such amounts as may be 
appropriated or credited to such Trust Fund as provided in this section 
or section 9602(b).
    ``(b) Transfers to Trust Fund.--
            ``(1) In general.--There are hereby appropriated to the 
        Hospital Gunshot Cost Relief Trust Fund amounts equivalent to 
        the net revenues received in the Treasury from the additional 
        firearms taxes.
            ``(2) Net revenues.--For purposes of paragraph (1), the 
        term `net revenues' means the amount established by the 
        Secretary based on the excess of--
                    ``(A) the additional firearms taxes received in the 
                Treasury, over
                    ``(B) the decrease in the tax imposed by chapter 1 
                resulting from the additional firearms taxes.
            ``(3) Additional firearms taxes.--For purposes of this 
        section, the term `additional firearms taxes' means the taxes 
        imposed by section 4181 with respect to pistols, revolvers, and 
        other firearms to the extent such taxes are imposed at a rate 
        in excess of 10 percent (11 percent in the case of firearms 
        other than pistols and revolvers).
    ``(c) Expenditures From Trust Fund.--Amounts in the Hospital 
Gunshot Cost Relief Trust Fund shall be available, as provided in 
appropriation Acts, only for purposes of making expenditures to assist 
hospitals located in urban areas in defraying the costs incurred in 
providing medical care to gunshot victims who are not covered under any 
health plan.''
    (b) Clerical Amendment.--The table of sections for such subchapter 
A is amended by adding at the end thereof the following new item:

                              ``Sec. 9512. Hospital Gunshot Cost Relief 
                                        Trust Fund.''

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