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Gunsmiths Win Tax Exemption

Friday, August 26, 2005

During the same week the Senate passed S. 397, NRA-ILA helped win an important but less-publicized victory for small custom gunsmiths.  A massive highway construction bill (which President Bush promptly signed into law) contained an amendment that exempts manufacturers of fewer than 50 firearms from "manufacturing" excise taxes.

For nearly 30 years, under a baffling web of IRS regulations, the Bureau of Alcohol, Tobacco and Firearms tried to collect these "manufacturing" taxes from gunsmiths (including years' worth of back taxes, in some cases), even if they were only modifying firearms that had been made in a regular gun factory.

NRA members should salute Senator Max Baucus (D-MT) who has championed this issue for many years, as well as Senate Finance Committee Chairman Chuck Grassley (R-IA), whose support was critical in ending this abuse of the tax system against America's many small gunsmiths.

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Established in 1975, the Institute for Legislative Action (ILA) is the "lobbying" arm of the National Rifle Association of America. ILA is responsible for preserving the right of all law-abiding individuals in the legislative, political, and legal arenas, to purchase, possess and use firearms for legitimate purposes as guaranteed by the Second Amendment to the U.S. Constitution.