Becoming a class III ?

9mm · April 19, 2011, 04:49 PM

I just watched this video on Knob creek, http://www.youtube.com/watch?v=_u1Qr...eature=related

This guy said he got his class III so he could buy new machine guns. He said its like $500 a year and what knot.

So can you own machine guns with a class III and not have to be a "gun shop"/seller ?

Rifleman1776 · April 19, 2011, 04:50 PM

Designed to discourage.

9mm · April 19, 2011, 07:56 PM

anyone else?

dogtown tom · April 19, 2011, 08:41 PM

Quote:

9mm I just watched this video on Knob creek, http://www.youtube.com/watch?v=_u1Qr...eature=related

This guy said he got his class III so he could buy new machine guns. He said its like $500 a year and what knot.

So can you own machine guns with a class III and not have to be a "gun shop"/seller ?

Licensed dealers and manufacturers (FFL's) can pay the Special Occupational Tax (SOT) each year which allows them to deal in NFA toys. The only way for a dealer to acquire a "new" machine gun is to obtain one as a "dealer sample"........meaning a demonstration letter from a law enforcement agency is required prior to transfer.

When the FFL goes out of business or fails to renew his license he must transfer those machine guns that were "dealer samples" to another licensee or to a PD.

Note:
-there is technically no such animal as a "Class III" license.
-Only Dealers & Manufacturers can obtain the SOT permit for NFA firearms.
-The $500 per year special occupational tax is for engaging in the business of dealing in NFA firearms. If you use your SOT to only acquire NFA toys for your own personal use...........it comes very close to tax evasion.

9mm · April 20, 2011, 11:32 AM

Quote:

If you use your SOT to only acquire NFA toys for your own personal use...........it comes very close to tax evasion.

Ah I see.

medalguy · April 20, 2011, 11:57 AM

Plus you didn't mention the cost and hassle of the State Dept registration and annual license requirements.

dogtown tom · April 21, 2011, 01:21 PM

Quote:

medalguy Plus you didn't mention the cost and hassle of the State Dept registration and annual license requirements.

If you are referring to ITAR, that only applies to manufacturers and has nothing to do with the SOT.

There is no annual license requirement....FFL's are issued or renewed for three year periods. The SOT tax is paid yearly.

April 19, 2011, 04:49 PM	#1
9mm Senior Member Join Date: January 9, 2011 Location: Land of the Free Posts: 2,834	Becoming a class III ? I just watched this video on Knob creek, http://www.youtube.com/watch?v=_u1Qr...eature=related This guy said he got his class III so he could buy new machine guns. He said its like $500 a year and what knot. So can you own machine guns with a class III and not have to be a "gun shop"/seller ?

April 19, 2011, 04:50 PM	#2
Rifleman1776 Senior Member Join Date: April 25, 2010 Location: Arkansas Posts: 3,309	Designed to discourage.

April 19, 2011, 07:56 PM	#3
9mm Senior Member Join Date: January 9, 2011 Location: Land of the Free Posts: 2,834	anyone else?

April 20, 2011, 11:57 AM	#6
medalguy Senior Member Join Date: August 31, 2009 Location: New Mexico Posts: 1,033	Plus you didn't mention the cost and hassle of the State Dept registration and annual license requirements.