November 5th , 2009
Gun, Ammo Sales Boon Benefits Wildlife, Hunters
According to data released this week from the U.S. Department of the Treasury, firearms and ammunition manufacturers reported $122 million in federal excise tax obligations for the second calendar quarter of 2009, reflecting an impressive increase of 52 percent compared to the same period a year ago.
The second quarter volume comes on the heels of a 43 percent increase in excise tax obligations reported during the first quarter of 2009 (compared to the same period in 2008), and a 31.3 percent increase experienced in the final quarter of 2008.
The second quarter breakdown shows $33.5 million was due in taxes for pistols and revolvers, $42.3 million for long guns and $46.1 million for ammunition sold between April 1 and June 30. Compared to the same quarter in 2008, excise tax obligations were up 44.4 percent for handguns, 51.3 percent for long guns and 57.5 percent for ammunition.
By using the latest tax numbers to calculate total sales, a projection of $1.14 billion was generated by gun and ammo sales in the second quarter of 2009. It should be noted that excise taxes are one of the best indicators of industry performance, but they only reflect what excise taxes the manufacturers have filed and do not reflect retail mark-up and final retail sales.
Mandated by The Federal Aid in Wildlife Restoration Act—also known as the Pittman-Robertson Act of 1937—manufacturers of firearms and ammunition pay 11 percent on long guns and ammunition and 10 percent on handguns sold. Recent federal legislation allows the manufacturers to pay the tax on a quarterly basis.
In addition, the manufacturers of archery equipment specifically produced for hunting pay an 11 percent excise tax.
Revenues generated from the excise tax are distributed to the individual states annually, utilizing a formula based on the number of licensed hunters and total area of the state.
Use of Pittman-Robertson funds are restricted by law, and must be spent on wildlife restoration programs, land and habitat acquisition, wildlife research, development of public shooting ranges and hunter education programs. Disbursement of the funds for projects other than those mandated will place a state’s future tax apportionments in jeopardy.
So, while it could be maintained that the current 12-month boon in the sale of specific firearms and ammunition has been profitable for manufacturers in certain sectors, it has been equally beneficial for the nation’s wildlife and its hunters.
And that’s a good thing.
—J.R. Absher
