The History of the NFA and Tax Stamps
The History of the National Firearms Act Tax Stamp: A Summary
The National Firearms Act (NFA) of 1934 is one of the oldest federal gun control laws in the United States, and it introduced the concept of the “tax stamp”—a unique blend of firearm regulation and taxation that remains relevant to this day.
Origins in Crime and Public Outcry
The NFA was enacted during the Great Depression, a time when gang violence was rampant. High-profile criminals like Bonnie and Clyde, John Dillinger, and Al Capone used automatic weapons, short-barreled shotguns, and other concealable firearms in their exploits. Public demand for action led to the Roosevelt administration’s push to curb the spread of these weapons.
What the NFA Regulates
The NFA doesn’t outright ban firearms—it taxes and regulates certain categories:
- Machine guns
- Short-barreled rifles (SBRs) and shotguns (SBSs)
- Suppressors (a.k.a. silencers)
- Destructive devices (e.g., grenades)
- “Any Other Weapons” (AOWs), such as disguised firearms
The Tax Stamp: A Regulatory Tool
Under the NFA, individuals or entities wanting to make or transfer an NFA item must:
- Submit an application (ATF Form 1 for making, Form 4 for transfers)
- Undergo a background check
- Pay a $200 tax ($5 for AOWs)
- Wait for approval, during which a physical “tax stamp” is issued
This “stamp” is proof of legal compliance, similar to a vehicle registration. Originally, the $200 fee was prohibitive—equivalent to several thousand dollars today—to discourage ownership. But over time, inflation has made the tax more symbolic than restrictive.
Legal Challenges and Evolving Enforcement
Though the NFA has faced legal scrutiny, it has withstood constitutional challenges—primarily because it was framed as a tax law, not a gun ban. In Haynes v. United States (1968), the Supreme Court ruled that convicted felons could not be compelled to register NFA weapons, leading Congress to revise the law with the Gun Control Act of 1968.
The Firearm Owners’ Protection Act of 1986 further amended the NFA by banning new machine guns for civilians, but allowed existing registered ones to be legally transferred with a tax stamp.
NFA Today
Today, tax stamp applications are processed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Wait times can vary from a few months to over a year, though recent eForms systems have aimed to reduce the backlog.
The NFA tax stamp has become a sort of collector’s badge among firearm enthusiasts, signaling both legal compliance and ownership of niche, highly-regulated firearms.
Conclusion
The NFA tax stamp represents a unique chapter in American firearms law—a blend of taxation, regulation, and historical legacy born from a response to 1930s crime waves. While controversial, it has endured for over 90 years and continues to shape the legal framework for certain classes of firearms in the United States.