[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1798 Introduced in Senate (IS)]
103d CONGRESS
2d Session
S. 1798
To amend the Internal Revenue Code of 1986 to increase the tax on
handguns and assault weapons and to impose a tax on the transfer of
handguns and assault weapons, to increase the license application fee
for gun dealers, and to use the proceeds from those increases to pay
for medical care for gunshot victims.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 25, 1994
Mr. Bradley 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 increase the tax on
handguns and assault weapons and to impose a tax on the transfer of
handguns and assault weapons, to increase the license application fee
for gun dealers, and to use the proceeds from those increases to pay
for medical care for gunshot victims.
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 ``Gun Violence Health Care Costs
Prevention Act''.
SEC. 2. FINDINGS.
The Congress finds that--
(1) there are currently over 209,000,000 firearms in the
United States, 71,000,000 of which are handguns and 1,000,000
of which are semi-automatic assault weapons;
(2) there are now over 280,000 federally licensed gun
dealers in the United States, as compared to 155,000 grocery
stores and 210,000 gas stations;
(3) a Federal firearms dealer's license allows the licensee
to purchase firearms wholesale across State lines;
(4) according to the Bureau of Alcohol, Tobacco and
Firearms, American taxpayers annually pay more than $28,000,000
in subsidies to operate the Federal firearms dealer licensing
system;
(5) each year more than 24,000 Americans (65 Americans a
day) are killed with handguns, either in homicides, by
committing suicide, or by unintentional injuries;
(6) handguns account for only one-third of all firearms in
the United States, but account for two-thirds of all firearm-
related deaths;
(7) in 1991, the United States led the developed world with
14,373 gun murders, as compared to 186 gun murders in Canada,
76 gun murders in Australia, 60 gun murders in England, and 74
gun murders in Japan;
(8) in 1991, there were 11,497 murders committed with
handguns, as compared to 745 murders committed with rifles,
1,124 murders committed with shotguns, and 3,430 murders
committed with knives;
(9) every 14 minutes someone in the United States dies from
a gunshot;
(10) in 1989, there were over 240,000 nonfatal firearms
injuries;
(11) 95 percent of the persons injured each year by a
handgun require emergency care or hospitalization;
(12) firearms injuries, fatal and nonfatal, are the third
most costly type of injury overall;
(13) the total lifetime costs associated with firearm
deaths and injuries were $14,400,000,000 in 1985, increased to
at least $16,200,000,000 by 1988, and increased to
$20,400,000,000 by 1990;
(14) the health care cost of firearm-related injuries is
approximately $3,000,000,000 a year;
(15) public funds pay for over 80 percent of the cost of
hospitalization for firearms injuries, excluding professional
fees and the cost of ambulance, physical therapy, and other
rehabilitative services;
(16) youngsters carry an estimated 270,000 guns to school
every day;
(17) gun violence is a major public health problem and
handguns, assault weapons, and the ammunition for these
firearms are major health hazards;
(18) the cost of firearms and firearms dealers licenses
should reflect the health costs of firearms to our society;
(19) the Federal taxes on handguns, assault weapons, and
the ammunition for these firearms should be significantly
increased to partially offset the health care costs of gun
violence;
(20) the fees required for Federal firearms dealer's
licenses should be significantly increased to partially offset
the health care costs of gun violence; and
(21) the increased Federal taxes should not be imposed on
firearms and ammunition which are recognized as particularly
suitable for, or readily adaptable to, sporting purposes.
SEC. 3. LICENSE APPLICATION FEES FOR DEALERS IN FIREARMS.
(a) In General.--Section 923(a) of title 18, United States Code, is
amended--
(1) by striking subparagraph (B) of paragraph (3) and
inserting:
``(B) who is not a dealer in destructive devices, a
fee of $3,000 for 3 years (including renewals).''; and
(2) by adding at the end the following new flush sentence:
``There are hereby appropriated to the Gun Violence Trauma Care Trust
Fund established under section 9512 of the Internal Revenue Code of
1986 (26 U.S.C. 9512) 93 percent of the revenues from fees collected
under paragraph (3)(B) for original licenses and 97 percent of the
revenues from such fees for renewal licenses.''.
(b) Effective Date.--The amendments made by this section shall
apply to license applications (including renewals) filed after the
180th day after the date of the enactment of this Act.
SEC. 4. INCREASE IN TAX ON HANDGUNS AND ASSAULT WEAPONS.
(a) Increase in Manufacturer's Tax.--
(1) In general.--Part III of subchapter D of chapter 32 of
the Internal Revenue Code of 1986 (relating to tax on firearms)
is amended by adding at the end the following new section:
``SEC. 4183. IMPOSITION OF ADDITIONAL TAX ON HANDGUNS AND ASSAULT
WEAPONS.
``(a) Imposition of Tax.--In addition to any tax imposed by section
4181, there is hereby imposed upon the sale by the manufacturer,
producer, or importer of any of the following articles a tax equivalent
to the specified percentage of the price for which so sold:
``Articles taxable at 20 percent.--
``Handguns.
``Articles taxable at 19 percent.--
``Semiautomatic assault weapons.
``Shells and cartridges used in handguns and
semiautomatic assault weapons.
``(b) Definitions.--For purposes of subsection (a)--
``(1) Handgun.--The term `handgun' means any pistol or
revolver.
``(2) Semiautomatic assault weapon.--
``(A) In general.--The term `semiautomatic assault
weapon' means--
``(i) any of the semiautomatic firearms
known as--
``(I) A.A. Arms AP-9;
``(II) Auto-Ordnance Thompson;
``(III) Barrett Light-Fifty;
``(IV) Beretta AR-70;
``(V) Bushmaster Auto Rifle;
``(VI) Calico M-900 and M-950;
``(VII) Cobray, Ingram and RPB MAC-
10 and MAC-11;
``(VIII) Colt AR-15 and Sporter;
``(IX) Encom MP-9 and MP-45;
``(X) Fabrique Nationale FN/FAL,
FN/LAR, and FNC;
``(XI) Feather AT-9;
``(XII) Federal XP900 and XP450;
``(XIII) Franchi SPAS-12;
``(XIV) Intratec TEC-9 and TEC-22;
``(XV) Israeli Military Industries
UZI and Galil;
``(XVI) Iver Johnson Enforcer 3000;
``(XVII) Norinco, Mitchell and Poly
Technologies Avtomat Kalashnikovs;
``(XVIII) Steyr AUG; or
``(XIX) USAS-12;
``(ii) a revolving-cylinder shotgun such as
or similar to the Street Sweeper or Striker 12;
and
``(iii) a semiautomatic firearm designated
by the Secretary as a semiautomatic assault
weapon under subsection (c).
``(B) Exceptions.--The term `semiautomatic assault
weapon' does not include (among other firearms)--
``(i) any of the firearms known as--
``(I) Remington Model 1100 shotgun;
``(II) Remington Model 7400 rifle;
``(III) Mossberg Model 5500
shotgun;
``(IV) HK Model 300 rifle;
``(V) Marlin Model 9 camp carbine;
``(VI) Browning High-Power rifle;
or
``(VII) Remington Nylon 66 auto
loading rifle;
``(ii) a firearm that is a manually
operated bolt action firearm;
``(iii) a lever action firearm;
``(iv) a slide action firearm; or
``(v) a firearm that has been rendered
permanently inoperable.
``(3) Shells and cartridges.--
``(A) Handguns.--The term `cartridges used in
handguns' includes--
``(i) any centerfire cartridge which has a
cartridge case less than 1.3 inches in length,
``(ii) any cartridge case which is less
than 1.3 inches in length, or
``(iii) any other ammunition listed under
subsection (c)(1)(B) as likely to be used in a
handgun.
``(B) Semiautomatic assault weapons.--The term
`shells or cartridges used in semiautomatic assault
weapons' means any shells, cartridges, magazines, or
other ammunition which is listed under subsection
(c)(1)(B) as likely to be used in a semiautomatic
assault weapon.
``(c) Designation of Semiautomatic Assault Weapons and Taxable
Ammunition.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this section, and annually thereafter, the
Secretary, in consultation with the Attorney General, shall--
``(A) determine whether any other semiautomatic
firearm (other than a firearm described in subsection
(b)(2)(B)) should be designated as a semiautomatic
assault weapon in addition to those previously
designated by subsection (b)(2)(A) or by the Secretary
under this subsection, and
``(B) publish a list of shells and cartridges which
are likely to be used in handguns and semiautomatic
assault weapons.
``(2) Criteria.--For purposes of paragraph (1)(A), the
Secretary shall by regulation designate as a semiautomatic
assault weapon a rifle, pistol, or shotgun that is a
semiautomatic firearm and that is described in paragraph (3),
(4), (5), or (6).
``(3) Replicas or duplicates.--A replica or duplicate in
any caliber of a semiautomatic firearm described in subsection
(b)(2)(A)(i) is a semiautomatic assault weapon.
``(4) Certain nonsporting firearms.--A rifle that is a
semiautomatic firearm is a semiautomatic assault weapon if it--
``(A) is not generally recognized as being
particularly suitable for or readily adaptable to
sporting purposes,
``(B) has an ability to accept a detachable
magazine, and
``(C) has at least 2 of the following
characteristics:
``(i) A folding or telescoping stock.
``(ii) A pistol grip that protrudes
conspicuously beneath the action of the weapon.
``(iii) A bayonet mount.
``(iv) A flash suppressor or threaded
barrel designed to accommodate a flash
suppressor.
``(v) A grenade launcher.
``(5) Certain pistols.--A pistol that is a semiautomatic
firearm is a semiautomatic assault weapon if it--
``(A) is not generally recognized as being
particularly suitable for or adaptable to sporting
purposes,
``(B) has an ability to accept a detachable
magazine, and
``(C) has at least 2 of the following
characteristics:
``(i) An ammunition magazine that attaches
to the pistol outside of the pistol grip.
``(ii) A threaded barrel capable of
accepting a barrel extender, flash suppressor,
forward hand grip, or silencer.
``(iii) A shroud that is attached to or
partially or completely encircles the barrel
and that permits the shooter to hold the
firearm with the second hand without being
burned.
``(iv) A manufactured weight of 50 ounces
or more when the pistol is unloaded.
``(v) A semiautomatic version of an
automatic firearm.
``(6) Certain shotguns.--A shotgun that is a semiautomatic
firearm is a semiautomatic assault weapon if it--
``(A) is not generally recognized as being
particularly suitable for or adaptable to sporting
purposes, and
``(B) has at least 2 of the following
characteristics:
``(i) A folding or telescoping stock.
``(ii) A pistol grip that protrudes
conspicuously beneath the action of the weapon.
``(iii) A fixed magazine capacity in excess
of 6 rounds.
``(iv) An ability to accept a detachable
magazine.''.
(2) Conforming amendments.--
(A) Section 4182(a) of such Code is amended by
inserting ``or 4183'' after ``section 4181''.
(B) Paragraph (6) of section 6091(b) of such Code
is amended by striking ``section 4181'' and inserting
``section 4181 or 4183''.
(C) The table of sections for part III of
subchapter D of chapter 32 of such Code is amended by
adding at the end the following new item:
``Sec. 4183. Imposition of additional tax on handguns and assault
weapons.''.
(b) Tax on Subsequent Sales or Transfers Involving Assault Weapons
and Handguns.--
(1) In general.--Chapter 31 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subchapter:
``Subchapter D--Handguns and Semiautomatic Assault Weapons
``Sec. 4056. Handguns and semiautomatic
assault weapons.
``SEC. 4056. HANDGUNS AND SEMIAUTOMATIC ASSAULT WEAPONS.
``(a) Imposition of Tax.--There is hereby imposed on any sale,
transfer, or other disposition by any person of a handgun,
semiautomatic assault weapon, or shells and cartridges used in handguns
and semiautomatic assault weapons a tax equal to 30 percent of the
price for which sold, transferred, or disposed of.
``(b) Credit for Tax Previously Imposed.--
``(1) In general.--In the case of the 1st retail sale of
any article, and any sale, transfer, or disposition preceding
the 1st retail sale, the amount of tax imposed by subsection
(a) shall be reduced by the amount of tax imposed by this
section, section 4181, or section 4183 on any preceding sale,
transfer, or disposition of the article.
``(2) Refunds.--If a taxpayer establishes to the
satisfaction of the Secretary that tax was imposed in excess of
the amount due, the Secretary shall pay (without interest) to
the taxpayer the amount of such excess.
``(3) Requirements.--No reduction or refund shall be made
under this subsection unless the taxpayer meets such
requirements as the Secretary may prescribe with respect to
proof of payment of tax for any prior sale, transfer, or
disposition.
``(c) Exceptions.--
``(1) Coordination with manufacturer's tax.--No tax shall
be imposed under subsection (a) on a sale, transfer, or
disposition of an article if tax is imposed under section 4181
or 4183 with respect to such sale, transfer, or disposition.
``(2) Defense department.--No tax shall be imposed by
subsection (a) on any sale described in section 4182(b).
``(d) Definitions.--For purposes of this section, the terms
`handgun', `semiautomatic assault weapon', and `shells and cartridges
used in handguns and semiautomatic assault weapons' have the meanings
given such terms by section 4183(b).''.
(2) Conforming amendment.--The table of subchapters for
chapter 31 of such Code is amended by adding at the end the
following new item:
``Subchapter D--Handguns and Semiautomatic Assault Weapons.''.
(c) Effective Date.--The amendments made by this section shall
apply to sales, transfers, and other dispositions after the 180th day
after the date of the enactment of this Act.
SEC. 5. GUN VIOLENCE TRAUMA CARE 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 the following new section:
``SEC. 9512. GUN VIOLENCE TRAUMA CARE TRUST FUND.
``(a) Establishment of the Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the `Gun
Violence Trauma Care 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 the Trust Fund.--There are hereby appropriated
to the Gun Violence Trauma Care Trust Fund amounts equivalent to--
``(1) the taxes received in the Treasury under section
4056,
``(2) the taxes received in the Treasury under section
4183, and
``(3) the amounts described in the last sentence of section
923(a) of title 18, United States Code.
``(c) Expenditures From the Trust Fund.--Funds in the Gun Violence
Trauma Care Trust Fund shall be available, as provided in
appropriations Acts, only--
``(1) for the purpose of making grants to assist hospitals,
trauma centers, or other health care providers that have
incurred substantial uncompensated costs in providing medical
care to gunshot victims, or
``(2) in the event a national health program is established
which compensates for those costs, for the purpose of
reimbursing that program for its costs in providing the
compensation.
``(d) Eligibility for Trust Fund Moneys.--A hospital, trauma
center, or other health care provider is eligible to apply for grants
from the Trust Fund for any calendar year if the hospital, trauma
center, or health care provider--
``(1) is in compliance with Federal and State certification
and licensing requirements;
``(2) is a not-for-profit entity; and
``(3) has incurred substantial uncompensated costs during
the previous calendar year in providing medical care to gunshot
victims.
``(e) Regulations for Trust Fund.--The Secretary shall, not later
than 180 days after the date of enactment of this section and in
consultation with the Secretary of Health and Human Services, issue
such regulations as are necessary to implement the provisions of this
section.''.
(b) Conforming Amendment.--The table of sections for subchapter A
of chapter 98 of such Code is amended by adding at the end the
following new item:
``Sec. 9512. Gun Violence Trauma Care
Trust Fund.''.
<all>
S 1798 IS----2