[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 396 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 396

      To amend the Internal Revenue Code of 1986 to exempt small 
              manufacturers from the firearms excise tax.


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                   IN THE SENATE OF THE UNITED STATES

                           February 13, 2003

  Mr. Baucus (for himself and Mr. Grassley) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
      To amend the Internal Revenue Code of 1986 to exempt small 
              manufacturers from the firearms excise tax.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gunsmith Excise Tax Simplification 
Act of 2003''.

SEC. 2. CUSTOM GUNSMITHS.

    (a) Small Manufacturers Exempt From Firearms Excise Tax.--Section 
4182 of the Internal Revenue Code of 1986 (relating to exemptions) is 
amended by redesignating subsection (c) as subsection (d) and by 
inserting after subsection (b) the following new subsection:
    ``(c) Small Manufacturers, Etc.--
            ``(1) In general.--The tax imposed by section 4181 shall 
        not apply to any article described in such section if 
        manufactured, produced, or imported by a person who 
        manufactures, produces, and imports less than 50 of such 
        articles during the calendar year.
            ``(2) Controlled groups.--All persons treated as a single 
        employer for purposes of subsection (a) or (b) of section 52 
        shall be treated as one person for purposes of paragraph 
        (1).''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to articles sold by the manufacturer, producer, or 
        importer on or after the date which is the first day of the 
        month beginning at least 2 weeks after the date of the 
        enactment of this Act.
            (2) No inference.--Nothing in the amendments made by this 
        section shall be construed to create any inference with respect 
        to the proper tax treatment of any sales before the effective 
        date of such amendments.
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