Ammunition Tax Law

Ammunition Tax was created in 1919.

Federal ammunition taxes are an excise tax governed by the Firearms and Ammunition Excise Tax (FAET). The United States created the tax in 1919. This law also covers tires, gasoline, coal, vaccines, sport fishing equipment, and bows and arrows, says TTB.gov.

History

According to TTB.gov, the FAET was originally collected by the IRS from 1919 to 1990. In 1990, the ATF overtook collection responsibilities.

Current Collection Responsibilities

In 2002, President Bush signed the Homeland Security Act which divided the ATF into two entities. The Alcohol and Tobacco Tax and Trade Bureau and the Bureau of Alcohol (TTB), Tobacco, Firearms, and Explosives (ATF). Currently, the TTB has collection responsibilities for the tax, says TTB.gov.

Tax Rate

The FAET applies an 11% tax rate on ammunition.

Tax Return

Taxpayers must file TTB Form 5300.26, Firearms and Ammunition Excise Tax Return on a quarterly basis.

Tax Deposits

During a quarter, if tax liability exceeds $2,000, a tax deposited must be made semi-monthly. File deposits using TTB Form 5300.27, Federal Firearms and Ammunition Excise Tax Deposit.

References

• TTB.gov: Alcohol and Tobacco Tax and Trade Bureau: Background
• TTB.gov: Alcohol and Tobacco Tax and Trade Bureau: FAET Reference Guide