Legal Brief: Shortened NFA Wait Times?
Legal Brief is a series where the ins and outs, and the dos and don’ts of the firearms world are covered. From popular topics to more niche subject matters, the Legal Brief tries to help our readers be the best gun owners. Venture Out is an Ohio-based outdoor social channel, so most of our articles, videos, and posts, lean toward that fact. Legal Brief is no exception. The things discussed here are geared towards Ohioans. Please, if residing in a different state, follow all the laws and regulations regarding that state. Furthermore, Venture Out is not legal counsel. So please, if you have further questions, seek the appropriate legal authorities on the subject.
Background
Sales of NFA items, namely suppressors and short-barreled rifles, have radically risen since the world succumbed to COVID-19. The American Suppressor Association corroborated figures posted by the ATF concerning the rise of suppressor sales from April 2020 to May 2021. These figures are listed as such:
- The total number of suppressors registered in the NFRTR is 2,664,775 as of May 2021
- This represents a 30% increase (622,056) since April 2020.
- A 35% increase in SOT dealers in 2020 (10,537, up from 7,806 in 2019)
In the past ten years, the average annual growth was 17%.
- A 10% increase in SOT manufacturers in 2020 (6,310, up from 5,716 in 2019)
- In the past ten years, the average annual growth was 14%.
Furthermore, the American Rifleman reported (from a BAFTE Panel at SHOT Show 2022) that the number of applications for a tax stamp (Form 4) in 2022 rose to 709,508. For reference, there were only 342,860 such applications submitted in 2019. And every year since these numbers continue to rise. Suppressors are here to stay.
Unfortunately, the Form 4 process is a bit arduous. Fingerprints, passport photos, paperwork, and a $200 fee are all required for proper submission. And until recently this was all done by hand unless the SOT possessed a Silencer Shop kiosk. For many, the turnaround on suppressors could take months or even years (years mainly concern NFA trusts that have several people on it). This was supposed to be reprieved at the end of 2021 with the introduction of electronic filing through EFORMS.NFA.GOV. The government—well the ATF—promised 90-day turnaround times. A vast improvement. Unfortunately, as more people submitted applications, the wait time soared.
Present Day
If you’ve paid attention to social media, or Reddit posts over the past month or so, you may have noticed people expressing excitement over fast approval times. It started with individuals receiving approvals in a couple of months, then a few weeks, then a week, and in some instances, 24 hours. What is happening?
An article from Silencer Shop reported from a recent ATF Town Hall where the ATF said approval times are coming down, drastically. ATF Deputy Assistant Director James Vann explained, “Now we see this in Reddit, people are saying ‘I got mine in a matter of hours or I got it the next day, is this normal?’ Yes, this is the new normal.” Furthermore, the article states, that “ATF leaders revealed plans for ongoing improvements aimed at consistently reducing wait times for both individual and trust applications.” While this rhetoric is mainly towards individuals, trusts will also see improved wait times, “We started in cleaning out the process and moving through this backlog with the individuals because we knew that that would be a much quicker gain for us. Now we are focusing on trusts. We are implementing certain things on the trust handling so we can streamline that as well. You’ll see that being streamlined over the next few weeks, although we’re making very great strides right now.” adding “If you’re a trust applicant and you’re waiting on this, you shouldn’t be waiting much longer.”
Things are Bigger in Texas
All of this is great news for NFA fans. However, many would argue that the NFA is a blatant violation of the 2nd Amendment. The fact that suppressors require formal registration is ludicrous—look at how easily attainable suppressors are in other countries. Moreover, if the NFA was repealed, or suppressors removed from it, they’d automatically be regulated by the Gun Control Act. It’s curious then, that the NFA, kind of out of nowhere, started to approve applications at unprecedented rates. Speculation suggests that it has to do with a recent Texas law allowing its citizens to buy Texas-made suppressors without submitting a Form 4. Originating from Texas House Bill 957 (Texas Suppressor Freedom ACT, 2021), it aims to exempt from federal regulation all suppressors that are made and remain in Texas. Additionally, the bill exempted silencers that are manufactured in Texas, and which remain in Texas, from Federal firearms laws and regulations, including the interstate commerce requirements under the NFA. The ATF, in response to HB 957’s passing, threatened manufacturers and residents that all NFA and GCA rulings and processes must be adhered to for the lawful ownership of a suppressor or face penalties of fines and/or imprisonment. Since its initial passing, HB 957 has been harassed by the ATF and has been overturned, appealed, shot down on a technicality, and now is being heard once again.Texas Gun Rights Foundation writes, “The heart of the case revolves around Texas House Bill 957, passed with the intent to exempt suppressors manufactured and retained within Texas from federal regulation. The ATF’s stringent response to this bill led to the lawsuit, as Texas sought to assert its rights under the Second Amendment and state sovereignty. The appeal to the Fifth Circuit represents a significant shift in the legal battle. Known for its favorable rulings on Second Amendment cases, the Fifth Circuit’s involvement could potentially reshape the landscape of federal suppressor regulations. This appellate court’s decision will be pivotal in determining whether Texas-made suppressors can be exempted from the NFA’s reach.”
What Does All This Mean?
So, wait times for Form 4s are down and Texas is battling the federal government over its sovereignty to create and enforce laws for its citizens, what’s the catch? Like everything in politics, it comes down to one of two things—power and money. An Outdoor Life Article from November of 2023 discussed the recent introduction of a bipartisan bill (H.R. 6352) to reduce the Form 4 waiting period to 90 days. This sounds good on its merit, but a deeper look reveals something interesting. The $200 fee that is associated with the Form 4 application (which has been fixed since the introduction of the National Firearms Act in 1934, and at least not adjustable for inflation) sits in a sort of escrow account until a Form 4 is approved. That means millions of dollars are sitting, waiting to be accessed. Currently, a portion of these fees are used to fund wildlife management, habitat, and shooting range infrastructure across the county (Pittman-Robertson). Furthermore, Tax Stamp revenue is increasing by 40% annually as their popularity has increased.
Revenue from the tax is expected to exceed $200 million in 2023. Tax-stamp revenue is currently deposited in the U.S. Treasury without any specific direction. According to Outdoor Life, the Tax Stamp Revenue Transfer for Wildlife and Recreation Act would reallocate that tax-stamp funding to the Pittman Robertson Wildlife Restoration Trust Fund. Specifically, 15 percent of the total revenue would go to the ATF’s NFA division to expedite the processing of suppressor applications. The remaining 85 percent would be deposited in the P-R Fund to support wildlife conservation, law enforcement, and hunter recruitment. Fifteen percent of the P-R contribution would be earmarked for the development, maintenance, and operation of recreational shooting ranges. That’s if the bill makes it out of committee and heads to the House floor.
Final Thoughts
Money is the problem. A big part of Both the Texas Suppressor Freedom ACT and The Tax Stamp Revenue Transfer for Wildlife and Recreation Act is to reduce or remove wait times. One would eliminate a $200 fee while the other would allocate those funds back into the very resources people who own suppressors are likely to use. But now the ATF is drastically reducing wait times, of their own accord.
While it is a nice sentiment to think the ATF is reducing wait times to offer a better service to law-abiding citizens, it is a way to combat the state of Texas and H.B. 6352 at once. Lower wait times will entice more people. To this point, the Tax Stamp fee has always been more of an annoyance rather than a point of contention. The detractor has always been lengthy wait times. Now the Federal Government can roll in additional revenue in the guise of helping its citizens while enticing more people to buy suppressors.
