RIFLE Act Eliminates Federal Firearm Transfer Tax, Cleaning Up the IRS Code

The newly introduced Repealing Illegal Freedom and Liberty Excises Act—or the RIFLE Act—is short, focused, and gets straight to the point: it completely wipes out the federal tax currently applied to the transfer of certain firearms. This isn't about income taxes or sales taxes; it specifically targets the Firearm Transfer Tax established under Section 5811 of the Internal Revenue Code of 1986.

The Tax Code Gets a Haircut

For anyone involved in the legal transfer of firearms, this is a clear win for simplicity and cost savings. The bill strikes Section 5811 entirely, meaning that specific excise tax is gone. Think of it as removing a required fee every time a transfer happens. Since that section is now toast, the bill also includes several technical amendments to clean up the rest of the tax code (specifically Sections 4182(a), 5846, 5852, 5853, and 5854). These changes are administrative housekeeping, ensuring the remaining regulations make sense without referencing a tax that no longer exists. For the average person, this means less bureaucracy and one less fee to worry about when dealing with regulated firearm transfers. These changes apply to any transfer occurring the day the Act becomes law.

Who Benefits from the Repeal?

This affects anyone dealing with the transfer of firearms previously subject to this excise tax—from small, specialized gun shops to individual collectors. The immediate impact is financial: the cost of the transfer drops by the amount of the tax. For example, if you're a small business owner dealing in these items, this means a slight reduction in your overhead and potentially a small reduction in the final cost to the consumer. The U.S. Treasury, however, will lose the revenue stream generated by this repealed tax. Since this is an excise tax on a specific transaction, the revenue loss is likely minor compared to major income taxes, but it is a concrete reduction in federal income.

Safety Oversight Stays Put

There's one crucial clarification in Section 3 that addresses potential jurisdictional confusion. The RIFLE Act explicitly states that repealing the transfer tax does not hand over authority for regulating these firearms to the U.S. Consumer Product Safety Commission (CPSC). The CPSC usually handles things like faulty appliances or dangerous toys—items that fall under consumer safety oversight. This provision makes it clear that even with the tax removed, the existing regulatory framework for firearms remains in place, keeping them out of the CPSC's purview. Essentially, the bill ensures that eliminating a tax doesn't accidentally shift which federal agency is responsible for overseeing firearm safety and regulation.