NFA F.A.Q
This information is general in nature since ownership requirements can vary widely from state to state. It does not constitute definitive or legal advice. We do not guarantee the accuracy of the information contained in the F.A.Q. Before dealing with any of these weapons consult local dealers and law enforcement authorities about the specific requirements of ownership in your state.
Aren’t fully automatic firearms (machine guns) illegal for people to own?
Under federal law select fire and fully automatic firearms have never been illegal for citizens to own. They are however heavily regulated and taxed under the National Firearms Act of 1934. All machine guns and other NFA firearms not in government hands must be registered in a federal database. That being said some states further regulate these firearms and may make them illegal in that state.
What are NFA firearms?
In addition to machine guns the National Firearms Act regulates the ownership of short barreled rifles (SBR) and short barreled shotguns (SBS) ,silencers, destructive devices (DD’s) and a class called AOW’s (any other weapon). Again states may further regulate or prohibit any or all of these items.
What kind of money are we talking about?
In today’s market a transferrable machine gun will range between $4,000.00 and $25,000.00 per gun with some rare specimens going as high as $350,000.00.
I have seen guns for better prices than those quoted above. What’s up?
Those guns are probably post-86 dealer samples. (Refer to “What is a transferrable gun?” below.)
What is a transferrable gun?
Machine guns basically fit into three categories, transferrable, pre-86 dealer samples and post-86 dealer samples. The key to all of this is the date May 19th, 1986. Prior to that date new machine guns were manufactured and sold the law enforcement, government and qualified civilians.
On May 19th, 1986 the federal government mandated that no new machine gun manufactured on or after that date could be sold to civilians thus creating a fixed group of guns that can be “transferred” to and from individuals. This was the Hughes Amendment to the bizarrely named “Firearms Owners Protection Act of 1986”which amended the Gun Control Act of 1968.
A pre-86 dealer sample is a machine gun imported after the Gun Control Act of 1968 but before the magic date of May 19th, 1986. In the 1968 Gun Control Act the importation of “foreign” live machine guns for the civilian market was prohibited. However the law permitted the importation of such guns as “dealer samples”. These guns may still be transferred on what is known as a Form 3 between dealers. These guns are not eligible for transfer to civilians; however a dealer may retain these guns in his collection after discontinuing his business.
A post-86 dealer sample is a machine gun manufactured on or after the magic date of May 19th, 1986 and again can only be transferred dealer to dealer on a Form 3 with the additional requirement that the dealer must have a letter from a government agency or law enforcement stating a need for a demonstration of such a gun. Also if a dealer suspends his business he must dispose of all post-86 samples in his inventory. They may not be retained in his collection.
The result of all of this is that there are no new machine guns available to the civilian market which has driven up prices of transferrable guns. New machine guns manufactured on or after May 19th, 1986 can only be sold to government and law enforcement entities.
Is there a yearly tax on machine guns?
No. There is a tax due each time a machine gun is transferred to a civilian. This is called a Form 4 transfer and the tax for a machine gun is $200.00. (Certain other NFA weapons have a $5.00 tax due for transfers. Registered DEWATS transfer tax free.) The regulation implies that the tax is to be paid by the person selling the weapon but in practice the purchaser actually pays the tax. There are no further tax payments due on the weapon unless you transfer it to someone else.
Dealers and manufacturers are regarded a Special Occupational Taxpayers (SOT’s) and do not pay transfer taxes on dealer to dealer (Form 3) transfers. They pay the special occupational tax as part of their licensing fees.
What is the term DEWAT mean and what are they?
The term “DEWAT” stands for Deactivated War Trophy. This was a program put in place around the 1950’s to allow troops to bring home war trophy guns. It is a registered NFA firearm with an intact receiver which has been rendered unserviceable in a way approved by ATF. This is usually the welding closed of the breech end of the gun and the barrel. Because of the intact receiver it is still considered a machine gun and must be registered. A DEWAT transfers tax free on a Form 5 as an unserviceable gun.
It is possible to reactivate a DEWAT by filing a Form 1 as an individual or through a Class II manufacturer on a Form 2. The success of doing this will depend on the type of welds that were applied to deactivate the weapon and its condition. The process is best carried out by an expert. This is not considered “manufacturing” in the strictest sense because you are only changing the status of an existing registered weapon.
The possibility of reactivation keeps DEWAT prices fairly high, though in certain cases the overall cost of the gun and reactivation can be somewhat less than the cost of an active gun.
Do I need a license or permit to own a machine gun?
There is no federal license needed to own a machine gun. However your particular state may require a license or permit. Always check with local dealers and police departments about this.
Can I convert a semi-auto gun to full auto?
Not unless you want a very long prison sentence! Remember May 19th, 1986? No new machine guns may be made for the civilian market on or after that date.
Another question along the same lines is the drilling jigs that you may see advertised or at gun shows. They may not be used to convert a firearm and the jigs themselves are not illegal but the possession of a jig and the firearm it is made for may be interpreted by federal authorities as intent to manufacture a machine gun. The same applies for certain parts and conversion kits. This can be prosecuted under the legal theory of “constructive possession”.
(The only exception is the use of a registered auto sear of the appropriate caliber in a semi auto host gun to convert it to full auto. The registered sear is considered a “machine gun”.)
How do I get one?
The following is a summary of the process an individual would use to purchase an NFA weapon. There are other purchase options such as trust and corporate purchases for which the process varies. There are also other options for who could qualify to complete the CLEO certification in the event your local Police Chief declines.
How long will it be before I can get my gun?
The time will vary depending on the work load at BATFE. Usually 3 to 6 months is average.
I have heard I give up my 4th Amendment rights by having a machine gun?
You don’t give up your 4th Amendment rights however if you are found to be in possession of an NFA weapon you may be required to show proof of registration. To quote directly from the ATF's Form: "This approved application is the registrant's proof of registration and it shall be made available to any ATF officer upon request." It is always wise to carry a copy of your approved Form 4 with your weapons.