Ammunition Tax was created in 1919.
Federal ammunition taxes are an excise tax governed by the Firearms and Ammunition Excise Tax (FAET). The United States created the tax in 1919. This law also covers tires, gasoline, coal, vaccines, sport fishing equipment, and bows and arrows, says TTB.gov.
History
According to TTB.gov, the FAET was originally collected by the IRS from 1919 to 1990. In 1990, the ATF overtook collection responsibilities.
Current Collection Responsibilities
In 2002, President Bush signed the Homeland Security Act which divided the ATF into two entities. The Alcohol and Tobacco Tax and Trade Bureau and the Bureau of Alcohol (TTB), Tobacco, Firearms, and Explosives (ATF). Currently, the TTB has collection responsibilities for the tax, says TTB.gov.
Tax Rate
The FAET applies an 11% tax rate on ammunition.
Tax Return
Taxpayers must file TTB Form 5300.26, Firearms and Ammunition Excise Tax Return on a quarterly basis.
Tax Deposits
During a quarter, if tax liability exceeds $2,000, a tax deposited must be made semi-monthly. File deposits using TTB Form 5300.27, Federal Firearms and Ammunition Excise Tax Deposit.
Tags: Ammunition Excise, Firearms Ammunition, Firearms Ammunition Excise, Alcohol Tobacco, collection responsibilities, created 1919, Form 5300