Special Occupational Taxpayers are a group of
Federal Firearm Licensees in the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
who manufacture, import and/or transfer
NFA weapons. The National Firearms Act Special Occupational Taxpayer class is part of the
Internal Revenue Code of 1986.
The Special Occupational Tax is due on or before July 1 of each year. The tax rate for every importer and manufacturer is $1,000 per year or part of a year. The tax rate for each dealer is $500 per year or part of a year. Importers and manufacturers engaged in business with less than $500,000 in gross receipts in the most recent taxable year are given relief in the form of a $500 reduction in SOT tax payment making the total SOT tax $500. In addition to the SOT tax, all importers and manufacturers must pay an annual
Excise tax
file:Lincoln Beer Stamp 1871.JPG, upright=1.2, 1871 U.S. Revenue stamp for 1/6 barrel of beer. Brewers would receive the stamp sheets, cut them into individual stamps, cancel them, and paste them over the Bunghole, bung of the beer barrel so when ...
to the
Tax and Trade Bureau (TTB) for firearms imported or manufactured for re-sale. The excise tax applies only when the quantity of firearms imported or manufactured during the year is 50 or more.
Special Occupational Taxpayer Classes
* Class 1, Usage: importer of NFA firearms
* Class 2, Usage: manufacturer of NFA firearms
* Class 3, Usage: dealer of NFA firearms
To get a Class 1 SOT status, an importer FFL is needed, which are FFL Types 8 and 11.
To get a Class 2 SOT status, a manufacturer FFL is needed, which are FFL Types 7 and 10.
To get a Class 3 SOT status, a dealer FFL is needed which are FFL Types 1 and 2.
Other occupations subject to tax
In addition to the firearms industry, the tobacco industry is also subject to paying special (occupational) taxes, and are therefore SOTs. Specifically, manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and tobacco export warehouse proprietors are subject to tax. Before 1 July 2008, segments of the alcohol trade (producers and marketers of alcohol beverages, manufacturers of non-beverage products, users of tax-free alcohol, and users and dealers of specially denatured spirits) were also subject to special (occupational) taxes. These taxes were repealed in Public Law 109–59.
See also
*
Bureau of Alcohol, Tobacco, Firearms, and Explosives
The Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE), commonly referred to as the ATF, is a domestic law enforcement agency within the United States Department of Justice. Its responsibilities include the investigation and preven ...
(ATF)
*
Firearm Owners Protection Act
The Firearm Owners' Protection Act (FOPA) of 1986 is a United States federal law that revised many provisions of the Gun Control Act of 1968.
Federal firearms law reform
Under the Gun Control Act of 1968, the Bureau of Alcohol, Tobacco and F ...
(1986)
*
Form 4473
A Firearms Transaction Record, or ATF Form 4473, is a six-page form prescribed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) required to be completed when a person proposes to purchase a firearm from a Federal Firearms License ...
*
Gun Control Act
The Gun Control Act of 1968 (GCA or GCA68) is a U.S. federal law that regulates the firearms industry and firearms ownership. Due to constitutional limitations, the Act is primarily based on regulating interstate commerce in firearms by generall ...
(1968)
*
Gun law in the United States
In the United States, access to guns is controlled by law under a number of federal statutes. These laws regulate the manufacture, trade, possession, transfer, record keeping, transport, and destruction of firearms, ammunition, and firearms acc ...
*
National Firearms Transfer Tax Rates
References
{{reflist
External links
Directory of FFL holdersFFLeZCheck system for verifying FFL validity NRA-ILA Factsheets: Federal Firearms LicenseNRA-ILA Factsheets: Federal Gun LawsClass3Dealers - FFL Online Directory
1934 in law
United States federal firearms law