• About
    ▼
    • Our History
    • Our Facility
    • Testimonials
    • Satisfaction Guaranteed
  • Services
    ▼
    • HK Conversions
    • Custom Builds
    • Gunsmithing Services
      ▼
      • Engraving
      • Refinishing
  • Pricing
    ▼
    • HK Conversions
      ▼
      • MP5 Conversions
      • MP5-N Conversions
      • G3 Conversions
      • 33/53 Conversions
    • HK Housing Services
    • Gunsmithing Services
    • Transfers
  • Ordering
    ▼
    • Service Request Form
    • Shipping
    • Transfers
      ▼
      • Transfer Policies
      • Incoming Transfer Procedure
      • Outgoing Transfer Procedure
    • Terms & Conditions
  • Gallery
  • Contact
    ▼
    • Contact Us
    • Location

Bahnhof Machine

Your HK Conversion Specialists.

Your HK Conversion Specialists.
  • About
    • Our History
    • Our Facility
    • Testimonials
    • Satisfaction Guaranteed
  • Services
    • HK Conversions
    • Custom Builds
    • Gunsmithing Services
      • Engraving
      • Refinishing
  • Pricing
    • HK Conversions
      • MP5 Conversions
      • MP5-N Conversions
      • G3 Conversions
      • 33/53 Conversions
    • HK Housing Services
    • Gunsmithing Services
    • Transfers
  • Ordering
    • Service Request Form
    • Shipping
    • Transfers
      • Transfer Policies
      • Incoming Transfer Procedure
      • Outgoing Transfer Procedure
    • Terms & Conditions
  • Gallery
  • Contact
    • Contact Us
    • Location

Silencer Tax: The Cost of Getting rid of the $200 Stamp

July 30, 2018 by Brad Bonhoff

Various incarnations of the Hearing Protection Act and the SHARE Act are churning their way through the legislative sausage grinder and onto social media feeds. In the midst of what is almost unanimously viewed as an opportunity for a positive change in deregulation, some comments of dismay and surprise seem to be popping up. People are reading the bill and discovering that the NFA $200 tax might be replaced by a 10% excise tax — and “that’s how they’ll screw ya!” The discovery of the 1937 Pittman–Robertson (PR) Federal Aid in Wildlife Restoration Act (WR) is apparently both new and alarming to some folks, even though they’ve been a participant in it with every round of ammunition and firearm they’ve ever owned.

A little history of the PR Wildlife Act and explanation of how it works might be in order to make a qualified decision on whether this is good news or bad.

In the 1930’s, President Roosevelt handed our great-grandparents a “New Deal,” which was a huge wealth redistribution scheme aimed at fending off the economic depression that started in 1929. Unemployment was at 25%. U.S. manufacturing output dropped over 30%. Money value deflated. So the Progressive answer was, of course, to put higher taxes on more things. Under the stresses of the depression, the “temporary” Revenue Act of 1932 began taxing a long list of commodities and services. It was supposed to sunset on June 30, 1934. The category of firearms and ammunition got tagged with a 10% excise tax, payable by the manufacturer on the wholesale value. This money went into the general funds of the federal government to be spent wherever the Roosevelt Brain Trust felt it was best suited to help promote the “3 Rs” of Relief, Recovery, and Reform.

Parallel but separate to the economic Depression, an awareness of nature conservation was growing. And not necessarily in the hippy, anti-hunting way, some might associate today. These were sportsmen that realized that *maybe* — just maybe — killing off ALL the bison wasn’t the best idea. Game animals we think of as commonplace, such as whitetail deer, were becoming scarce. Wild turkey sightings were a tall tale. Passenger pigeons were hunted into extinction. Economically speaking, firearm and ammunition companies knew that if the USA ran out of delicious targets, they wouldn’t be selling much of anything in the future. Which, in the end, would dramatically affect gun ownership and usage for generations to come.

When Congress was discussing discontinuing this tax in 1937, conservationists requested it be repackaged and earmarked for wildlife restoration. Senator Key Pittman and Representative A. Willis Robertson sponsored a bill to collect an excise tax on guns and ammunition and force the funds towards pro-hunting and wildlife causes. It passed with little opposition. And whether you know it or not, you’ve been paying into that fund with every piece of lead you’ve returned to the earth since then.

NOT THE WORST TAX YOU’VE EVER PAID

While no one likes a new tax, this one at least escapes a lot of the government good-idea-fairy’s grasp. On top of that, it’s pretty widely accepted as one of the few taxes that positively affects the people being taxed. Also -shockingly for any tax- it has a positive rate of return to companies paying into it. The PR’s sneaky play was the inclusion of wording that prohibits the diversion of fees paid by hunters for any other purpose than the administration of game and fish departments. States have to agree to this provision to receive their chunk of PR funds. As the U.S. Fish and Wildlife Service explains, these funds go to the Secretary of the Interior and on to the States for “acquisition and improvement of wildlife habitat, introduction of wildlife into suitable habitat, research into wildlife problems, surveys and inventories of wildlife problems, acquisition and development of access facilities for public use, and hunter education programs, including construction and operation of public target ranges.”

While most people are unaware of PR and how it works, one anti-gun website discovered it and wrote a scathing condemnation of the entire evil scheme, uncovering that “Game agencies encourage very young children to hunt. They want to ensure the future of hunting and firearms profits!” Hmm. That doesn’t sound too bad to me. Public target ranges and youth gun safety programs paid for with your ammo tax dollars is policy guaranteed to make anti-gunners cringe. And the fact that your AR15 purchase preserves “their” nature parks is worth reminding them about. Frequently.

Over the last 80 years, hunting license and firearm tax dollars have been protected from being skimmed off by state governments for other purposes due to PR language. Along the way, amendments starting in the 1970s generally continued in manners supportive of hunters and gun owners. One example would be Rep. Latta of Ohio’s amendment, which added on the awesomely-named “Target Practice and Marksmanship Training Support Act.” This authorized a state to pay up to 90% of the costs of acquiring land for, expanding, or constructing public target ranges. Excise tax on bows and arrows were eventually folded in to contribute to PR funds, and a similar fishing tax/protection act exists to benefit our perch-pursuing sportsman brothers.

As hinted at above, studies show that the excise tax has a positive effect on gun and accessory sales. If there’s a new public shooting range, people are going to go shooting and buy ammo. If there’s a new hunting ground stocked with game, some new shotguns are going across the counter of your local gun shop. From creating jobs in the guide business to sales of each round of ammunition, the PR results in opportunities for the firearms industry to make money. “How many tax models in our country today can show an $11 to $21 return to the company on every dollar spent,” said Congressional Sportsmen’s Caucus Co-Chair U.S. Congressman Jeff Miller, R-Fla. “This is one of the most impressive examples of how an American industry can profit and bolster the economy while restoring and improving our nation’s cherished natural resources.”

All in all, PR taxes have been somewhat invisible to the end user because of their collection at the wholesale level. However, their collection has contributed around $11 billion ($787.5 million in the fiscal year 2016 alone) towards things the firearms community generally agrees on as good. The PR even benefits folks that don’t chip in: over 70% to 95% of citizens enjoying these funded areas are not even shooters, fishers, or hunters. They just camp, hike, and explore these same managed lands and admire or photograph their managed wildlife.

WHERE WERE WE? SOMETHING ABOUT SILENCERS?

After all the tree hugging, deer petting, and New Deal history, it comes back around to death and taxes. In this case, the death of one of the most onerous taxes of the 1930s: The National Firearms Act. The saddling of Maxim’s little harmless dime store tube with a big killer $200 federal stamp. The HPA aims to take sound suppressors off the NFA and lump it in with common Title One firearms such as rifles. The death of the silencer’s NFA tax would be great news if it passes: No more $200 end-user tax every time one changes hands. But, in the politics of give and take, it becomes taxed like a pistol with the same excise tax you’ve always paid whether you knew it or not. The SHARE Act’s language of Section EC. 1507 amends the Internal Revenue Code by adding “firearm silencer or firearm mufflers” to the list of “Articles taxable at 10 percent.”

HOW MUCH IS THIS GONNA COST ME?

People who don’t understand PR’s wholesale taxation arrangement are worried that a $1000 silencer would now have $100 due tax on it that wasn’t due before. Even though that would be half of what they pay now on an NFA stamp, it’s still not so. While wholesale-to-retail markup can vary wildly from maker to maker, let’s make some educated assumptions on the pricing of the common .22LR silencer. It might have an MSRP of $350, a dealer cost of $225, and a distributor cost of $175, if the manufacturer chooses to participate in two-step distribution. The first sale ($175) is the number that is taxed, and at 10%, that’s $17.50. And, yes, that’s $17 bucks which assuredly will be passed along to the consumer, but first folded through the dealer and distributor on its way, where it might get rounded up or down a bit. That sort of taxation on sound abatement might still be theft, but most folks should be less offended by having $17.50 pickpocketed towards a good cause than having $200 pinched just to participate in an annoyingly long waiting period.

Keep in mind that a PR type tax is paid one time only. Whereas each time an NFA item changes hands, another $200 transfer tax is due (which pretty much prevents a widespread used suppressor market). End users would not be taxed on downstream transfers as they are now. This would create, for the first time since 1934, a valid secondhand market as well as the potential for manufacturer trade-in deals on old suppressors. Additionally, we know that deregulation, of course, will also allow the market to grow. Through this, we can expect to see some cheaper silencers very quickly due to the scale of economy change in manufacturing them. This will further cut down the tax basis of a wholesale suppressor and therefore the total price to the end user. In short, there are exponential positive consequences to the consumer whether they’re hunters or just shooters that don’t want to ruin their hearing. Add to that the positive consequences of increased PR funding going to hunting areas and public lands, and you’ve got a better deal than you have now — by far.

ABOUT THE AUTHOR

Kel Whelan is an independent consultant to industry and government on silencer business and technology with more than 20 years of experience in manufacturing, design, sales, distribution, branding, and politics throughout the NFA industry. By way of disclosure, he owned, managed, and sold a silencer company and was one of the three founding directors of the ASA.

Read more: http://www.recoilweb.com/excise-tax-versus-nfa-tax-stamp-129705.html#ixzz5Mn798Zjt

Source: http://bit.ly/2M3hbO4

Filed Under: General, News, Products

Investing in Machine Guns?

August 31, 2016 by Brad Bonhoff

Many casual firearm owners are stunned when they learn the price of fully automatic weapons. After this sticker shock wears off, the person begins to ask why. The answer is simple, supply and demand. No new machine guns may be brought to market, thus the supply is limited by those willing to sell used firearms. Naturally, demand grows as more people enjoy the shooting sports and as the country as a whole grows.

It does not take long for someone to ask the next question: Are machine guns a good investment?

Well, machine guns are certainly not a typical investment, but there is a whole asset class referred to as alternative investments. This loosely defined investment term would include everything from classic cars and baseball cards to machine guns. Anything that has the potential to grow in value is an investment if it is bought and cared for with that purpose.

A new-in-box machine gun, or one in very good condition, certainly has the potential to appreciate in value if properly cared for. However, a low grade example of a common firearm bought and used for shooting is unlikely to appreciate above and beyond inflation. (That being said, it is possible to replace any part of the firearm other than the receiver, and the receiver can be repaired. For this reason even a neglected shooter can be turned  back into a pristine shooter, but this will not qualify the gun as all original.)

The single largest risk with machine guns as an asset class is political risk. In the unlikely scenario that congress allowed the sale of newly manufactured machine guns, or the Supreme Court found the ban unconstitutional, common examples would fall drastically in price. In a more likely scenario, if congress eliminated future transfers the cash value of machine guns would be nil. And in the most likely scenario, if congress raised the transfer tax on machine guns the resale value of the machine gun would be correspondingly lowered.

In the past couple of decades political risk has been quite low, but now that risk has grown by leaps and bounds. It is anyone’s guess regarding the short term outcome of that risk, and any investment in machine guns must be made with that risk in mind. We may know in a month or two what congress has done, or the issue may still be lingering about two or four years from now.

Should you decide to buy a machine gun, I suggest you do so because you enjoy shooting. Realize that this may be a final purchase and you may never have the chance to sell it. (If that truly bothers you financially, you can always sue the government on the grounds of an unconstitutional taking. This may get you money, but it may also cost you the firearm.) I would not purchase a machine gun solely as an investment, but would consider the holistic enjoyments of owning such a device and piece of history.

read more/source: http://bit.ly/2bHM7kk

Filed Under: General Tagged With: machine guns

Gun Collections Pose Special Estate Problems

August 19, 2016 by Brad Bonhoff

The following article is by Peter J. Reilly, a Forbes Contributor
Taxes are a heavy component of estate planning, but it is important to be alert for other issues.  Even though much of my practice is in a right-to-carry state (Florida), it hadn’t ever crossed my mind that guns require special attention in estate plans until I received a heads up from Allen J. Margulis of Total Counsel Law Group.  I asked Attorney Margulis if he would like to do a guest post on the subject of gun trusts and he was gracious enough to provide the following:

People may collect guns for self‐defense, target shooting or hunting. Guns may be investments or heirlooms. Many gun owners want their guns to be used responsibly and be passed on to those who appreciate them. Certain firearms and accessories are federally restricted. A state may restrict them further. For example, short‐barreled rifles, automatic weapons, silencers and other such items, require a federal tax stamp to acquire as well as the approval of the local Chief Law Enforcement Officer (CLEO.) There are many regulations and issues surrounding passing guns down to one’s heirs that are not present with a bank account, chair, picture or other type of property. We must consider not only where the beneficiary lives, the laws of that state, the laws of the state where the items are located, the eligibility of the beneficiary to be in possession, but also:

  1. Is it a good idea to put a weapon in the hands of the beneficiary? Are they mature and responsible enough?
  2. If not, what will we do?

A Gun Trust is a special purpose revocable living trust. A Gun Trust is written to hold only firearms. The owner of the gun is the trustee and the beneficiary. The owner appoints successor trustees and lifetime and remainder beneficiaries. The trust can be amended or revoked at any time and the owner can name and remove beneficiaries. In the past, Gun Trusts were created primarily for NFA restricted firearms (Title II items ‐ silencers, short-barreled rifles, shotguns, and machine guns) but lately they have attracted the attention of those who own “assault weapons” .

Gun Trusts are used for two main reasons. The first is to expedite a transfer of a National Firearms Act firearm. Using a trust means you do not have to obtain the approval of your local Chief Law Enforcement Officer (CLEO) and the application can be sent directly to BATF. This saves a lot of time. Registration of a NFA firearm to an individual or corporation takes approximately one to three months to complete. The firearm cannot be handled or transported by any other private individual unless the firearm’s registered owner is present. However, NFA items owned by properly drafted trusts may be legally possessed by any Trustee and a beneficiary may use the item in the presence or under the authority of the Trustee. The second reason is to provide detailed instructions over disposition of one’s gun collection.

read more/source: http://bit.ly/2b3vftJ

Filed Under: News Tagged With: estate, nfa, trust

12 Firearm Instagram Accounts You Should Follow

August 18, 2016 by Brad Bonhoff

firearmsinstamainInstagram might be my favorite social media platform. Users can instantly capture and share their favorite photos, advertise products and events, and even post their best #shelfie (not to be confused with #selfie). On Instagram, the average joe turns into a professional photographer thanks to the app’s many filters and simple editing tools.

Below are a few of the accounts I found trolling through Instagram hashtags #EDC, #CCW, #Firearms, #2A…. you know the drill. These accounts are popular for reviewing firearms, promoting concealed carry, sharing other’s awesome firearms pictures and videos, or all of the above.

Check them out and tell us what your favorite Instagram accounts are in the comments below!

  1. @everyday_tactical
  2. @hashtagtical
  3. @fourguysguns
  4. @gun
  5. @readygunner
  6. @gunsdaily
  7. @wise_men_company
  8. @canetuckeecarry
  9. @project_ronald
  10. @metalhead_1
  11. @gunfreaks
  12. @sootch_00

read more/source: http://bit.ly/2b4XaU5

 

Filed Under: News Tagged With: firearms, instagram, nra

Connect With Us

  • Facebook
  • Instagram
  • LinkedIn

Customer Testimonials

Dom Armienti

Excellent service! Brad really takes the time to make sure that his customers are satisfied!

Mark Avery

I have used Bahnhof Machine for multiple builds and repairs. The attention to detail and quality of their work is second to none.
They set the bar for the other builders to attain.

Lee McDuffie

Great Service. Quick shipping. Definitely recommend!

Vito Servideo

Brad @ Bahnhof Machine is a master of his craft. We trust him with our most intricate and in depth builds on our transferable machine guns. His work is second to none and he’s an all around great gunsmith and person. There is no one else we trust in the US with our projects. Besides, he sends us awesome stickers with each package 📦

Ken Brown

Excellent workservice at reasonable pricing – highly recommend!

Pablo Gonzalez

Awesome experience at Bahnhof Machine. I purchased a Sten gun that unfortunately had some serious issues. Brad took the time to listen to my concerns and repaired the gun in a very quick and professional manner. The work was top notch, at a fair price, and in a timely manner. Glad I found a local gunsmith with the experience I can trust.

Joe Walsh

Sent my sp5k to Brad for a mp5k-N conversion. The turnaround time was quick and the work was immaculate. Engraving looks perfect and the finish was flawless. Definitely would recommend Bahnhof Machine! Will definitely be doing more business in the future.

Joe Lee

The best place for HK services. Brad is very knowledgeable about firearms.

Melissa Walsh

Brad is very knowledgeable with anything and everything having to do with guns. He makes his customers feel like they are his top priority and can get any gun that he does not have in stock within a few days.

Daniel Weinberg

This is the place to go for HK services. The best place. You will not be dissatisfied and might actually learn a thing or two.

Spencer Gray

I sent a HK in for work and was very happy when it was returned. The work is top knotch! I also had a pictogram lower lasered to make it look like a 4 position, it looks just like factory!

The wait time was reasonable and communication great! I will send more work here in the future!

Swatowsky

I had some work done several months back on a SP5-L and choosing to work with Bahnof Machine was the best choice I could have made. He is even willing to work with the ban states and look up the laws to make sure the whole thing is compliant. Definitely the best for any HK services!

Jordan

As others have stated, Brad is an absolute master of his craft. I have sent him multiple roller lock HK’s for service and his attention to detail is second to none. When you want the best, Bahnhof Machine delivers.

Alex Burnett

Couldn’t have asked for better service. Thank you Brad for helping me out.

C L

Best HK guy I have ever dealt with. His work is the highest quality. His refinishing work is better than factory finishes I have seen. He is very conscientious and cares about his work.

Roy Bishop

If you want a quality job that demands perfection-you have found the place! Brad is an absolute perfectionist that puts heart and soul in his work. Don’t expect it overnight but when it’s complete-it’ll be nothing less than perfect!! Thank you for attention to detail and heart and soul in my project!!!!

Jay Mac

Thank You, highly recommend!

Jeffrey Rouhier

Brad is a great guy to deal with. He’s one of a few true HK experts still in the game. Also hassle free with transfers. Definitely recommend

Jimmy Torelli

Excellent sales and service. Owner Brad knows his way around any firearm I have brought him. Definitely a company I recommend!

Kevin McMullen

He did a fantastic job on my MP5 lowers clip and pin and remarkings. Thanks again.

Read more testimonials

Famous Gun Quotes

Clint Eastwood

I have a very strict gun control policy: if there’s a gun around, I want to be in control of it.

Brad Pit

America is a country founded on guns. It’s in our DNA. It’s very strange but I feel better having a gun.

Robert Kiyosaki

French fries kill more people than guns and sharks, yet nobody’s afraid of French fries.

Sarah Palin

We say keep your change, we’ll keep our God, our guns, our constitution.

George Washington

Firearms are second only to the Constitution in importance; they are the peoples’ liberty’s teeth.

Loretta Lynn

Growing up in eastern Kentucky like I did, I’m used to having a few guns around to protect me.

Robert Heinlein

An armed society is a polite society.

Matt Groening

I don’t have to be careful, I’ve got a gun.

Christian Slater

It’s better to have a gun and not need it than to need a gun and not have it.

Bruce Willis

If you take guns away from legal gun owners, then the only people who would have guns would be the bad guys.

Admiral Yamamoto

You cannot invade the mainland United States. There would be a rifle behind each blade of grass.

Jeanine Pirro

I’ve got an idea; how about you don’t blame all gun owners for the actions of a few?

Martin Luther King

The right to defend one’s home and one’s person when attacked has been guaranteed through the ages by common law.

About Us

Bahnhof Machine is a full-service and federally licensed firearms dealer located in Minneola, Florida, which is just 30 minutes from downtown Orlando. We specialize in HK conversions, but also do everything from simple repairs to custom builds.

Get Connected

For the latest news, including contests, special offers, new products, and events, be sure to check out our Facebook,  Instagram, and LinkedIn pages by clicking one of the icons below.

—Brad Bonhoff, President

  • Facebook
  • Instagram
  • LinkedIn

Contact Us

Bahnhof Machine
2301 Zaltana Circle
Minneola, FL 34715
352.901.1655 phone
[email protected]

Office Hours
M–F: 8:00am–5:00pm
Sat, Sun: By appointment only

© Copyright 2025   Bahnof Machine, LLC · All Rights Reserved · Designed by  Idea Lynx