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#6421502 - 08/23/16 06:59 PM Gunsmith question??
Fishing Fester Online   content
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Registered: 07/17/12
Posts: 1210
Loc: Weatherford
I hear there is a new tax yall have to pay each yr now. Something like $2200. Also something about any time u alter a rifle that in some way improves accuracy, it is considered manufacturing. Is this all true? How does this affect small mom and pop gunsmith services?

#6421631 - 08/23/16 08:46 PM Re: Gunsmith question?? [Re: Fishing Fester]
HorizonFirearms Offline
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Registered: 05/05/10
Posts: 1666
Loc: College Station, Texas
That is what the last executive order was about its called the ITAR fee. We as a company have been paying it for years as a 07 manufacture so for us it does nothing different from a fees perspective. Not sure how it will affect the guys with 01"gunsmith licenses" will probably force them do pay the 2250 per year as well. We actually met with our lawyer today to talk about how it affects suppliers specifically as that is un-clear. I am no expert on this just yet that is why we pay lawyers to interpret this stuff. For example we manufacture our stocks at corporate in Shiner, Texas. That is not where our firearms business is, some interpretation is saying that they may too have to pay the itar as a manufacture of gun parts, that could potentially be the case for barrel manufactures as well, don't quote me on that but that is what we are currently looking into for our business as the answer is a little muddy. Where it will affect most gunsmiths from the way we read it is that if you are a gunsmith and you put a barrel on a rifle or rebarrel a rifle that would be "Manufacturing activity" that means that you will have to pay the $2250 ITAR tax per year and register. What is the most tricky and concerning about the "Manufacturing" definition changing is once a gun builder "manufactures" over 49 guns there is an 11% additional FET tax paid on the sale. Currently gunsmith/ rebarrels are not subject to that tax. However, what we are trying to get a ruling on is by changing the definition of "manufacturing" to include rebarrel/ remanufacturing that may count those projects towards that 49 per year. So what it will probably do is limit production of a lot of smaller shops or make the 11% tax move to the consumer. We have an ATF inspection coming up tomorrow as they called today so I will ask and see what else I can find out.

#6421903 - 08/24/16 04:47 AM Re: Gunsmith question?? [Re: Fishing Fester]
charlesb Offline
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Registered: 04/07/10
Posts: 1499
Loc: West Texas mountains
President Obama has released an executive order affecting all US gunsmiths:

News Item

News Item

A lot of the smaller Mom and Pop gunsmithing services will be forced out of business. Others will stay in business, but will struggle financially because of the fees. Smaller gunsmithing shops that cannot afford the fees will have to severely cut down on the number of services that they can offer.

Prices for gunsmithing services will tend to go up, across the board. This is, in part, because shops with the manufacturing license will be sent business from small shops that do not, or cannot afford to pay the annual "manufacturing" fee.

This executive order may or may not survive the next election cycle. If it does, then it may or may not survive the court system as this kind of action is a perfect fit for a class action lawsuit.

In the end, it may do more good to the gunsmithing community than harm, as gunsmiths will have to organize and work together in order to deal with it, to a degree that has so far never been seen.

I am currently setting up a special website for this specific purpose. - To give all gunsmiths a common ground in which they may organize, and share knowledge/resources. No financial help is needed for this task, at least not now, but any other kind of advice, participation or assistance from other gunsmiths would of course be greatly appreciated. I will note here that some gunsmiths are certified after taking courses, and some are not. - There must be room in the tent for all, in order to facilitate effective action. - The greatest potential for strength is in numbers.

If you are a gunsmith and would like to join this conversation, PM me here. The website is not ready for publication yet, but soon will be.

In a general sense, gunsmiths tend to be independent, capable individuals. The only new trick we will have to learn in order to deal with this attack upon our profession is to organize and work together, toward a common purpose. The rewards for accomplishing this will go far beyond the current issue.

Edited by charlesb (08/24/16 05:09 AM)
Kind regards, charlesb


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