According to the most recent Firearms and Ammunition Excise Tax Collection Report released by the Department of the Treasury, firearm and ammunition manufacturers report excise tax obligations to be more than $115.8 million in the third calendar quarter of 2009, up 29% over the same time period reported in 2008.
This increase follows a 52% increase in excise tax obligations from the previous quarter (2Q, 2009) and more than a year of record-high FBI background checks for firearm purchasers — another strong indicator of firearm sales.
Excise tax obligations over the last reported 12 months, Oct. 1, 2008 to Sept. 30, 2009, were more than $445.6 million, an increase of $124 million or 38.6 percent over the preceding 12-month period, Oct. 1, 2007 to Sept. 30, 2008.
Manufacturers of firearms and ammunition pay a federal excise tax — a major source of wildlife conservation funding — on all firearms and ammunition manufactured (11% on long guns and ammunition and 10% on handguns).
The report, which covers the time period of July 1, 2009 through Sept. 30, 2009, shows that $29.85 million was due in taxes for pistols and revolvers, $37.09 million for long guns and $48.89 million for ammunition. Compared to the same quarter in 2008, collections were up 50.2% for handguns, 33.4% for ammunition and 11.5% for long guns.
Translation to Sales:
Using the latest collections as an indication of sales, a projection of $1.08 billion was generated in the third quarter (calendar year) of 2009. Please keep in mind that although excise taxes are one of the best indicators of industry performance, they only reflect what excise taxes the manufacturers have filed and do NOT reflect retail mark-up and final retail sales.
Pistols and revolvers: $29,854,743.52 / .10 = $298,547,435.20 = $298.5 million for handguns
Long guns: $37,086,945.59 / .11 = $337,154,050.82 = $337.2 million for long guns
Ammunition: $48,887,389.15 / .11 = $444,430,810.45 = $444.4 million for ammunition
Total estimation for the quarter: $1.08 billion
