Machine guns, mega weapons for sale in Houston

<hgroup> [h=1]Machine guns, mega weapons for sale in Houston[/h] [h=2]Federal rules allow, control sales[/h] Published On: Jan 29 2013 12:35:09 PM CST

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HOUSTON - It's no secret the debate swirling about an assault weapons ban is turning into a business boom for gun dealers. KPRC Local 2 has found the same is true for the sale of machine guns and military-style weapons. They're huge and powerful and they can be bought legally in Houston.
"If you can buy a handgun, you can buy a machine gun," said Cris Parsons, general manager of Houston Armory.

The small gun store in Stafford is packed full of machine guns, short-barrel rifles, even 50-caliber weapons. Customers are paying big bucks for it all.
"The guy spending $800 at Academy is not the guy who comes in here," said Parsons. "The average gun in my shop runs $3,000 and up."
Parsons has plenty of weapons that cost much more. Parsons showed KPRC Local 2 machine guns with price tags of $40,000. Another custom machine gun set -- that includes a night-vision scope -- costs $30,000. A 50-caliber military-style weapon costs $75,000.
"It's not the need for the gun, it's the desire for the gun," said Parsons. "People want things that other people don't have and can't have. The exclusivity behind NFA weapons are what drives people."
NFA is the National Firearms Act. It's the federal rule that makes buying these kinds of weapons legal. For every sale, there is loads of detailed paperwork, federal background checks and a $200 tax that goes to the Bureau of Alcohol, Tobacco, Firearms and Explosives. Then, there's a six- to eight-month waiting period to take the weapon home. The ATF also tracks nearly every move the weapon makes from there.

"The registration is person specific, serial-number specific and includes locations," Parsons said. "When you transport, you notify ATF. If you cross state lines, there are forms you fill out. If I want to send a weapon to get painted, I have to file paperwork to send it to the paint guy."
Despite all the rules, customers are lining up. Along with the big machine guns, they're buying silencers and fully-automatic handguns -- all weapons that can only be sold at a Class 3 specialized gun dealer, like Houston Armory. Business is so good that Parsons said he's looking to add a large, full-time shooting range to the store.

Parsons said researchers have not found any evidence from the ATF that shows any of Class 3 weapons sold nationwide have been used in a crime. Parsons said the key to safe gun ownership is controlling who gets a weapon, not what the weapon can do.

Registration, purchases, taxes and transfers

It is a common misconception[SUP][12][/SUP] that an individual must have a "Class 3 License" in order to own NFA firearms. An FFL is required as a prerequisite to become a Special Occupation Taxpayer (SOT): Class 1 importer, Class 2 manufacturer-dealer or Class 3 dealer in NFA firearms, not an individual owner. Legal possession of an NFA firearm by an individual requires transfer of registration within the NFA registry. An individual owner does not need to be an NFA dealer to buy Title II firearms. The sale and purchase of NFA firearms is, however, taxed and regulated, as follows:
All NFA items must be registered with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Private owners wishing to purchase an NFA item must obtain approval from the ATF, obtain a signature from the Chief Law Enforcement Officer (CLEO) who is the county sheriff or city or town chief of police (not necessarily permission), pass an extensive background check to include submitting a photograph and fingerprints, fully register the firearm, receive ATF written permission before moving the firearm across state lines, and pay a tax.[SUP][citation needed][/SUP] The request to transfer ownership of an NFA item is made on an ATF Form 4.[SUP][13][/SUP] Many times law enforcement officers will not sign the NFA documents. There have been several unfavorable lawsuits where plaintiffs have been denied NFA approval for a transfer. These lawsuit include: Lomont v. O'Neill[SUP][14][/SUP], Westfall v. Miller[SUP][15][/SUP], and Steele v. National Firearms Branch.[SUP][16][/SUP] In response, Tennessee and Alaska have passed state laws which require the CLEO to execute the NFA documents.[SUP][citation needed][/SUP] On October 28, 2010, in response to a writ of mandamus, County Chancellor Robbie Beal in Williamson County, Tennessee found[SUP][citation needed][/SUP] that the sheriff or CLEO is not required to execute NFA documents according to the Tennesssee statute, Tenn. Code Ann. 39-17-1361.
NFA items may also be transferred to corporations (or other legal entities such as a trust). When the paperwork to request transfer of an NFA item is initiated by an officer of a corporation, a signature from local law enforcement is not required, and fingerprint cards and photographs do not need to be submitted with the transfer request. Therefore, an individual who lives in a location where the chief law enforcement officer will not sign a transfer form can still own an NFA item if he or she owns a corporation. This method has downsides, since it is the corporation (and not the principal) that owns the firearm. Thus, if the corporation ever dissolves, it must transfer its NFA firearms to the owners. This event would be considered a new transfer and would be subject to a new transfer tax.[SUP][citation needed][/SUP]

US National Firearms Act Stamp, affixed to transfer forms to indicate tax paid.


The tax for privately manufacturing any NFA firearm (other than machineguns, which are generally illegal to manufacture) is $200.[SUP][citation needed][/SUP] Transferring requires a $200 tax for all NFA firearms except AOW's, for which the transfer tax is $5 (although the manufacturing tax remains $200).
Dealers who pay a special yearly occupational tax are exempt from these taxes for transfers to or from other special occupational taxpayers (SOT's).[SUP][citation needed][/SUP] Only a Class 2 manufacturer can “make and register” a machine gun—and that gun becomes a Post May-19th, 1986 Gun—salable only to police, State, local, Federal-Government, and the military. Low volume Class 2 manufacturers (those with sales under $500,000.00) pay the $500.00 per year SOT tax, while high sales volume Class 2’s pay the full $1,000.00 SOT “ticket” price.[SUP][citation needed][/SUP]
Transferable machine guns made or registered before May 19, 1986 are worth far more than their original, pre-1986 value.[SUP][citation needed][/SUP] And items like registered “auto-sears,” “lightning-links,” trigger-packs, trunnions, and other “combination of parts” registered as machineguns before the aforementioned date are often worth nearly as much as a full registered machine gun. For instance, as of September 2008, a transferable M16 rifle costs approximately $11,000 to $18,000, while a transferable "lightning-link" for the AR-15 can sell for $8,000 to $10,000.[SUP][citation needed][/SUP] New manufacture M-16s sell to law enforcement and the military for around $600 to $1000.[SUP][citation needed][/SUP]
The registration or transfer process (to an individual or corporation) takes approximately 3–6 months to complete as of October 2011.[SUP][citation needed][/SUP] Additionally, the firearm can never be handled or transported by any other private individual unless the firearm's registered owner is present.[SUP][citation needed][/SUP] Corporations which own NFA firearms can loan them to any employee of the corporation with a letter of permission on the corporate letterhead. NFA items owned by trusts may be legally possessed by any trustee (i.e., if a husband and wife are both trustees, either of them may use and transport the firearm without the other present).[SUP][citation needed][/SUP]
Upon the request of any ATF agent or investigator, or the Attorney General, the registered owner must provide proof of registration of the firearm.[SUP][17][/SUP]
In a number of situations, an NFA item may be transferred without a transfer tax. These include sales to government agencies, temporary transfers of an NFA firearm to a gunsmith for repairs, and transfer of an NFA firearm to a lawful heir after the death of its owner.[SUP][citation needed][/SUP] A permanent transfer, even if tax-free, must be approved by the ATF. The proper form should be submitted to ATF before the transfer occurs. For example, lawful heirs must submit a Form 5 and wait for approval before taking possession of any NFA item willed to them. Temporary transfers, such as those to a gunsmith or to the original manufacturer for repair, are not subject to ATF approval since they are not legally considered transfers. The ATF does, however, recommend filing tax-free transfer paperwork on all such temporary transfers, to confer an extra layer of legal protection on both the owner and the gunsmith.[SUP][citation needed][/SUP]

a good day to be in the gun business