[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 868 Introduced in Senate (IS)]
103d CONGRESS
1st Session
S. 868
To amend the Internal Revenue Code of 1986 to increase the tax on
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
May 4 (legislative day, April 19), 1993
Mrs. Murray (for herself, Mr. Simon, Mr. Kerry, Ms. Moseley-Braun, and
Mr. Mathews) 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, 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 ``Firearm Victims Prevention Act''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds that--
(1) according to the Centers for Disease Control, an
estimated 34,000 Americans die from firearm injuries each year,
including 25,000 from handgun violence;
(2) firearms rank as the 8th leading cause of death in the
United States, and less than 5 percent of fatal shootings are
unintentional;
(3) the National Center for Health Statistics reported in
March 1993 that, among Americans age 15 through 24, firearms
are the cause of more deaths than all natural causes combined;
(4) from 1979 to 1989, the firearm homicide rate among
children age 15 through 19 increased 61 percent, while the
nonfirearm homicide rate fell 29 percent;
(5) more than 135,000 students carry handguns to school
everyday, and an additional 270,000 students have carried a gun
to school at least once;
(6) the United States leads industrialized nations in the
percentage of households with firearms and the number of
homicides with guns;
(7) according to the Centers for Disease Control, the
estimated lifetime costs for firearm injuries that occurred in
1985 will be $14,400,000,000;
(8) according to the 1991 Advisory Council on Social
Security, the overall annual cost of firearms injury to the
health care system in the United States is more than
$4,000,000,000;
(9) public funds pay for an estimated 85 percent of the
cost of hospitalization for firearm injuries, excluding
professional fees and the cost of ambulance, physical therapy,
and other rehabilitative services;
(10) the indirect costs of gun-related injuries, such as
disability payments, legal fees, and lost work time, are
estimated to be 2 times the estimated annual direct cost of
firearm injury;
(11) more than 280,000 manufacturers, dealers and
individuals are licensed to sell firearms in the United States;
and
(12) Federal firearm licenses are inexpensive, relatively
easy to obtain, and may only be revoked upon criminal
conviction.
(b) Purpose.--The purpose of this Act is to help alleviate the
public health care cost resulting from firearm-related injury and death
by--
(1) establishing a transactional tax on the purchase of the
firearms and ammunition most commonly associated with injury
and death;
(2) raising licensing fees for dealers who sell such
firearms and ammunition; and
(3) using funds generated from the transactional tax and
licensing fees to help offset the health care cost resulting
from firearm injury and death.
SEC. 3. INCREASE IN TAX ON HANDGUNS AND ASSAULT WEAPONS.
(a) Increase in Manufacturer's Tax.--Section 4181 of the Internal
Revenue Code of 1986 (relating to imposition of tax on firearms) is
amended to read as follows:
``SEC. 4181. IMPOSITION OF TAX.
``(a) Imposition of Tax.--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 25 percent.--
``Handguns.
``Assault weapons.
``Large capacity magazines.
``Shells and cartridges used in handguns and
assault weapons.
``Articles taxable at 11 percent.--
``Firearms (other than handguns, assault weapons,
and pistols or revolvers).
``Shells and cartridges not taxable at 25 percent.
``Articles taxable at 10 percent.--
``Pistols and revolvers not taxable at 25 percent.
``(b) Definitions.--For purposes of subsection (a)--
``(1) Handgun.--The term `handgun' means a firearm which,
at the time of manufacture, had a barrel of less than 12 inches
in length.
``(2) Assault weapon.--The term `assault weapon' means--
``(A) a firearm--
``(i) which--
``(I) has a barrel of between 12
and 18 inches in length, and
``(II) is capable of receiving
ammunition directly from a large
capacity ammunition magazine, or
``(ii) which is a semiautomatic firearm
which is--
``(I) not recognized generally as
particularly suitable for, or readily
adaptable to, sporting purposes, or
``(II) concealable by a person, or
``(B) a firearm which is substantially functionally
equivalent to a firearm described in subparagraph (A).
``(3) Large capacity ammunition magazine.--The term `large
capacity ammunition magazine' means a detachable magazine,
belt, drum, feed strip, or similar device which has, or which
may be readily restored (or converted) to a device which has, a
capacity of 15 or more rounds of ammunition.''
(b) Retail Tax on Subsequent Transactions Involving Assault Weapons
and Handguns.--
(1) In general.--Chapter 31 of the Internal Revenue Code of
1986 (relating to retail excise taxes) is amended by adding at
the end the following new subchapter:
``Subchapter D--Handguns and Assault Weapons
``Sec. 4056. Handguns and assault
weapons.
``SEC. 4056. HANDGUNS AND ASSAULT WEAPONS.
``(a) Imposition of Tax.--There is hereby imposed on any sale,
transfer, or other disposition by any person of a handgun, assault
weapon, large capacity magazine, or shells and cartridges used in
handguns and assault weapons a tax equal to 25 percent of the price for
which sold, transferred, or disposed of.
``(b) Exceptions.--
``(1) Coordination with manufacturer's tax.--If tax has
been paid under section 4181 with respect to any article, no
tax shall be imposed under subsection (a) on such article until
a sale, transfer, or disposition occurring after the first
retail sale of the article.
``(2) Defense department.--No tax shall be imposed by
subsection (a) on any sale described in section 4182(b).
``(c) Definitions.--For purposes of this section, the terms
`handgun', `assault weapon', and `large capacity magazine' have the
meanings given such terms by section 4181(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 Assault Weapons.''
(c) Effective Date.--The amendments made by this section shall
apply to sales, transfers, and other dispositions after the 30th day
after the date of the enactment of this Act.
SEC. 4. HEALTH 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 thereof the following new section:
``SEC. 9512. HEALTH 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 ``Health
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 Health 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 4181
which are attributable to the tax on articles subject to the
25-percent rate, and
``(3) the amounts described in section 923(a)(3)(D) of
title 18, United States Code.
``(c) Expenditures From the Trust Fund.--Funds in the Health Care
Trust Fund shall be available, as provided in appropriations Acts, only
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 except
that no single hospital, trauma center or health care provider may
receive more than one-tenth of 1 percent of the funds appropriated
under this section.
``(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 60 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. Health Care Trust Fund.''
SEC. 5. LICENSE APPLICATION FEES FOR DEALERS IN FIREARMS.
(a) In General.--Section 923(a)(3) of title 18, United States Code,
is amended--
(1) in subparagraph (B) by striking ``$25'' and inserting
``$2,500'';
(2) in subparagraph (C) by striking ``$10'' and inserting
``$2,500''; and
(3) by adding at the end the following new subparagraph
(D):
``(D) There are hereby appropriated to the Health
Care Trust Fund established under section 9512 of the
Internal Revenue Code of 1986 (26 U.S.C. 9512) United
States Code one-half of the revenue from the fees
collected under subparagraphs (B) and (C).''
(b) Effective Date.--The amendments made by this section shall
apply to license applications filed after the 30th day after the date
of the enactment of this Act.
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