[Congressional Record Volume 155, Number 47 (Wednesday, March 18, 2009)]
[Senate]
[Page S3375]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself, Mr. Crapo, Mrs. Lincoln, Ms. Snowe, 
        Mr. Roberts, Mr. Enzi, and Mr. Ensign):
  S. 632. A bill to amend the Internal Revenue Code of 1986 to require 
that the payment of the manufacturers' excise tax on recreational 
equipment be paid quarterly; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, I am pleased today to join with my friend 
Senator Crapo to introduce an important piece of legislation that would 
help to strengthen the financial health of America's firearm and 
ammunition manufacturers, who in turn support wildlife conservation in 
America.
  The firearm and ammunition industry pays a Federal excise tax of 11 
percent on long guns and ammunition and 10 percent on handguns. The Tax 
and Trade Bureau in the Treasury Department collects this tax. The 
Bureau sends the proceeds to the U.S. Fish and Wildlife Service, where 
they are deposited into the Wildlife Restoration Trust Fund, also known 
the Pittman-Robertson Trust Fund.
  The tax is a major source of conservation funding in America. Since 
1991, the firearm and ammunition industry has contributed about $3 
billion to the Pittman-Robertson Fund and since the inception of the 
tax, has contributed over $5.5 billion. In 2008, over $321 million was 
collected.
  Of all the industries that pay excise taxes on the sale of their 
products to support wildlife conservation efforts, firearms and 
ammunition manufacturers are the only ones that have to pay excise 
taxes every 2 weeks. Other industries, such as archery and fishing, pay 
their tax every 3 months.
  This frequent payment obligation imposes a costly and inequitable 
burden on the firearms and ammunition industry. Manufacturers spend 
thousands of additional man-hours just to administer the paperwork 
associated with making the bi-weekly excise payments.
  According to the National Shooting Sports Foundation, changing the 
deposit schedule from a bi-weekly to quarterly payment would save the 
industry an estimated $21.6 million dollars a year. That is money that 
the industry could use for investment in researching and developing new 
products, purchasing new manufacturing plants and equipment, and 
communicating with the hunting and shooting sports community.
  Let me take a moment to explain what this legislation does not do. It 
does not reduce the firearm and ammunition industry's excise tax rates. 
It simply adds fairness to the tax code.
  It is important for my Colleagues to understand the history and 
nature of the firearm and ammunition excise tax. During the Great 
Depression, hunters and conservationists recognized that overharvesting 
of wildlife would destroy America's treasured wildlife and natural 
habitats. Sportsmen, state wildlife agencies, and the firearm and 
ammunition industries lobbied Congress to extend the existing 10 
percent excise tax and impose a new 11 percent excise tax to create a 
new fund. The fund was called the Pittman-Robertson Trust Fund after 
Senator Key Pittman of Nevada and Representative A. Willis Robertson of 
Virginia. President Franklin D. Roosevelt signed the legislation into 
law in 1937.

  The industry, hunters, and conservationists came together to create 
this structure. They recognized the importance of conservation. And 
they encouraged Congress to impose a tax on their guns and ammo. It is 
rare thing when taxpayers ask to be taxed. But preserving our country's 
wildlife habitat was and continues to be that important.
  Today, more than $700 million each year is generated and used 
exclusively to establish, restore, and protect wildlife habitats.
  Now let me explain the effect that the bill we are introducing today 
would have on the Pittman-Robertson Trust Fund. As the Joint Committee 
on Taxation explained in its revenue estimate, the net budget effect to 
the fund is $4 million. This is purely a result of the shift in the 
timing of collections, from bi-weekly to quarterly, over a 10-year 
budget window. Consumers of firearms and ammunition would still pay the 
exact same amount of tax.
  The firearm and ammunition industry recognizes the ten-year $4 
million loss to the trust fund. The industry developed a comprehensive 
5-year proposal to ease this effect. Under the proposal, the industry 
would contribute $150,000 a year for the next 5 years, a total of 
$750,000, to the fund.
  These actions again show the partnership between hunters, 
conservation groups, and the firearm and ammunition industry to protect 
conservation programs and initiatives. That's why this legislation is 
supported by the following groups: Archery Trade Association; 
Association of Fish and Wildlife Agencies; Boon and Young; 
Congressional Sportsmen's Foundation; Delta Waterfowl; Ducks Unlimited; 
National Rifle Association; National Shooting Sports Foundation, Inc.; 
National Wild Turkey Federation; North American Wetlands Conservation 
Council; Pheasants Forever; Rocky Mountain Elk Foundation; Safari Club 
International; Wildlife Management Institute; U.S. Fish and Wildlife 
Service; and U.S. Sportsmen's Alliance.
  I urge my Colleagues to support this legislation. I am very glad that 
Senators Lincoln, Snowe, Roberts, Ensign and Enzi have also signed onto 
this legislation as original cosponsors. I hope that we can come 
together, just as the industry, hunters, and conservation groups have, 
to pass this legislation. It is a matter of tax fairness. Let us do our 
part to correct this inequity in the tax code. Let us do our part to 
support an American industry that in turn supports wildlife habitat 
restoration and conservation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 632

       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 ``Firearms Fairness and 
     Affordability Act''.

     SEC. 2. TIME FOR PAYMENT OF MANUFACTURERS' EXCISE TAX ON 
                   RECREATIONAL EQUIPMENT.

       (a) In General.--Subsection (d) of section 6302 of the 
     Internal Revenue Code of 1986 (relating to mode or time of 
     collection) is amended to read as follows:
       ``(d) Time for Payment of Manufacturers' Excise Tax on 
     Recreational Equipment.--The taxes imposed by subchapter D of 
     chapter 32 of this title (relating to taxes on recreational 
     equipment) shall be due and payable on the date for filing 
     the return for such taxes.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to articles sold by the manufacturer, producer, 
     or importer after the date of the enactment of this Act.
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