Firearms, Ammunition Tax Revenues Skyrocket

posted on August 18, 2009
ii2015_fs.jpg

Ammunition and firearms taxes were up a staggering 43 percent in the first quarter of 2009, yet another indicator of how the firearms business has surged since Nov. 4, 2008 when Barack Hussein Obama was elected president.

The Deptartment of the Treasury reports that the tax receipts were $109.8 million for the first three months of 2009. The report comes on the heels of a 31 percent increase in the last three months of 2008.

Manufacturers of firearms and ammunition pay a federal excise tax, which is earmarked for wildlife conservation. Handgun makers pay 11 percent and long-gun makers pay 10 percent. The tax is paid at the time the guns are manufactured and is based on the wholesale selling price.

Using the tax data to extrapolate the total firearms market for 2009’s first quarter, the industry produced slightly over $1 billion worthof firearms at the wholesale level. While it is difficult to project the profit margin between the wholesale price at which the tax is paid and the eventual retail price, industry insiders place the total retail volume at between $1.2 and $1.3 billion.

Ammunition accounted for nearly $38 million of the total first quarter taxes with long-guns slightly ahead at $39 million and handguns at barely over $33 million.

Meanwhile, the National Sporting Goods Association reported that “hunting and firearms” was the only category to experience double-digit growth in 2008 out of seven categories. We appear to be headed to another “up year” in 2009, according to the Association.

Latest

Magpul Maztech X4 System F
Magpul Maztech X4 System F

First Look: Magpul & Maztech X4 System

In 2022, Magpul announced a collaboration with Maztech to create a unique rounds-remaining weapon-mounted display that operates in concert with your mounted LPVO.

First Look: Federal Premium Force X2 Shorty Shotshell

Federal Premium combined two of its cutting-edge technologies to create the all-new Force X2 Shorty shotshell, which delivers devastating stopping power.

New For 2022: Bushmaster Firearms BA30 Straight-Pull Rifle

Bushmaster Firearms is out of the gate in 2022 with a radically new straight-pull bolt-action rifle based on the AR .308 platform.

New For 2022: Kel-Tec P15

Kel-Tec announced the launch of the company's first-ever striker-fired handgun in 2022. The Kel-Tec P15 is chambered in 9 mm and is ultra-light and ultra-thin, making it perfect for concealed carry.

On The Range: Savage Arms Stance

Savage Arms introduced its first handgun in more than a century in the form of its Stance, a slim, single-stack 9 mm CCW pistol.

On The Range: Smith & Wesson CSX

Smith & Wesson now offers a radically different option for those looking for a micro-compact concealed-carry pistol, thanks to its CSX.

Interests



Get the best of American Rifleman delivered to your inbox.