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 Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

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 The Alcohol and Tobacco Tax and Trade Bureau, statutorily named the Tax and Trade Bureau and frequently shortened to TTB, is a bureau of the United States Department of the Treasury, which regulates and collects taxes on trade and imports of alcoh ...

(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.

References

{{reflist

External links

Directory of FFL holders

FFLeZCheck system for verifying FFL validity

NRA-ILA Factsheets: Federal Firearms License

NRA-ILA Factsheets: Federal Gun Laws

Class3Dealers - FFL Online Directory
1934 in law United States federal firearms law

Special Occupational Taxpayer Classes

Other occupations subject to tax

See also

References

External links