# Understanding the NFA Modernization Act of 2021

This bill would increase the federal tax on certain firearms and use that money to fund gun violence prevention programs. Right now, when someone transfers ownership of certain regulated firearms—like silencers, short-barreled rifles, or machine guns—they pay a $200 federal tax. This bill would raise that tax to $300, starting in 2022. After that, the tax would automatically increase each year to keep pace with inflation, so it would go up slightly every year based on the cost of living.

The bill affects anyone who buys, sells, or inherits these specific types of regulated firearms. If you're planning to transfer one of these weapons, you'd need to pay the higher tax fee to the federal government. The increase is $100 per transfer, which might not sound like much, but it adds up over time, especially with the annual inflation adjustments built in.

The money collected from this higher tax would go into a new "Firearms Trust Fund." Half of the money would go to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to fund gun violence prevention work, and the other half would go to the Office of Justice Programs for similar purposes. Essentially, the bill uses the tax increase as a way to fund federal agencies that work on gun safety and violence prevention initiatives.

NFA Modernization Act of 2021

Raskin, Jamie

NFA Modernization Act of 2021 This bill increases from $200 to $300 the excise tax on the transfer of certain firearms. It also establishes a Firearms Trust Fund and transfers to such fund the revenues from the increased excise tax. The bill requires equal 50% expenditures from the fund for gun violence prevention initiatives of the Bureau of Alcohol, Firearms, and Explosives and the Office of Justice Programs of the Department of Justice.