The National Firearms Act runs on tax law, and the first tax is not on any firearm — it is on the OCCUPATION. Every person who engages in the business of importing, manufacturing, or dealing in (including pawnbrokers) firearms in the United States must pay a special (occupational) tax. This sits on top of the federal firearms license Chapter 2 covers; it is a second, separate liability, and holding a license does not discharge it. The tax is paid on or before the date of commencing the taxable business, and thereafter every year on or before July 1.

It does not prorate, and that catches people. The tax is computed for the entire tax year — July 1 through June 30 — regardless of how much of that year the taxpayer is actually in business, so a person commencing business after July 1 owes the whole year’s tax. The rates set three classes: Class 1 for an importer of firearms and Class 2 for a manufacturer, each $1,000 per year or fraction thereof, and Class 3 for a dealer at $500. A reduced rate is available to a SMALL importer or manufacturer — one whose gross receipts for the most recent taxable year ending before the taxable period are less than $500,000 — which brings the $1,000 down to $500. Gross receipts means ALL of the taxpayer’s gross receipts, not merely those of the business subject to the tax.

Liability attaches per place of business, which is the entire office, plant, or area of the business in any one location under the same proprietorship. A person pays the tax for each location where a taxable business is carried on — with the useful exception that a taxpayer covered at a principal place of business may use other locations SOLELY for storing firearms without incurring liability there. Where more than one taxable business is carried on at the same location in a taxable year, the tax on each must be paid; a qualified manufacturer or importer need not also qualify as a dealer to deal on the qualified premises, but a qualified manufacturer who imports must also qualify as an importer, and a qualified dealer may not manufacture or import at all.

Payment runs through a return rather than an invoice. The prescribed return is ATF Form 5630.7, Special Tax Registration and Return, filed with payment; properly completing, signing, and timely filing it is what constitutes compliance. On a properly completed and executed return accompanied by the full amount due, the taxpayer is issued a SPECIAL TAX STAMP as evidence of payment. That stamp is a receipt, not a permission slip — it evidences that the occupational tax is paid, and nothing more.