Proposed RIFLE Act Would Repeal Federal Tax on Certain Firearm Transfers

This bill, officially the "Repealing Illegal Freedom and Liberty Excises Act" or RIFLE Act, focuses on two key areas related to firearms. It proposes to eliminate the federal transfer tax associated with specific types of firearms regulated under the National Firearms Act (NFA) and clarifies the regulatory jurisdiction over these items. The tax repeal, as outlined in Section 2, would apply to transfers made after the bill's enactment date.

What That Tax Repeal Actually Means

The core change in the RIFLE Act is the repeal of the tax mandated by Section 5811 of the Internal Revenue Code. This tax, typically $200, applies to the transfer of NFA items such as suppressors, short-barreled rifles/shotguns, and machine guns. Eliminating this tax, effective after the bill passes, would directly reduce the cost for individuals legally acquiring these specific types of firearms through transfer. The bill also includes related technical updates to other parts of the tax code (Sections 4182, 5846, 5852, 5853, and 5854) to align with this repeal.

Keeping Regulatory Lanes Clear

Beyond the tax implications, Section 3 of the bill addresses regulatory authority. It explicitly states that this legislation does not grant the Consumer Product Safety Commission (CPSC) any authority over firearms already regulated under the Internal Revenue Code (which includes NFA items). This provision aims to prevent jurisdictional confusion, reinforcing that agencies like the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), not the CPSC, are responsible for overseeing these particular firearms.