Type 99 Machine Gun Class III NFA Weapons / Title 2 firearms are not as commonly known nor as straight forward as the Title 1 firearms. All class III / title 2 weapons fall into 1 of 6 different categories.

1) Machineguns,

2) Short Barreled Rifles (SBRs),

3) Short Barreled Shotguns (SBSs),

4) Suppressors,

5) Any Other Weapon (AOWs) and

6) Destructive Devices.

All title 2 firearms are regulated by the National Firearm Act (NFA). There are major misconceptions… which are, contrary to the assumptions by numerous individuals, as well as some law enforcement.

NFA weaponry:

A) is legal in almost every state – Most all 6 categories above are allowed in just about all states within the Continental United States. A few states do restrict machinegun ownership; others may restrict short barreled shotguns (SBSs) or suppressors, etc.

B) One doesn’t need to obtain a “Class III” weapons license to own. There is no such thing as a class III NFA weapons license. When a Title 1 FFL dealer pays what is known as a Special Occupation Tax (SOT), he/she then becomes a SOT that can then deal in NFA/Title 2 weapons. SOTs have several classes also and they are based on the type of FFL license one currently holds. The term Class III comes from when a normal Type 1 (standard dealer) FFL holder pays his/her SOT tax. He/she becomes a Type III SOT, thus the term Class III.

C) Transferring/selling ownership of an NFA weapon – All NFA weapons regardless of category (machineguns, silencers, etc.) are controlled during their transfer from one person/entity to another person/entity. These weapons transfer on what is frequently called ATF tax forms. Each ownership transfer MUST be approved by the ATF before the transfer takes place. This approval may take many months. Generally individual transfer is approved in 4-6 months utilizing an ATF Form 4, dealer to dealer utilizing an ATF Form 3 in 3-6 weeks. Once the ATF approves the transfer, they cancel a tax stamp. This is why one may hear the term “class III stamp”. Transfers from/to individuals require a onetime $200 tax stamp to be paid for EACH transfer. If a person purchases NFA weapon(s) or item from someone outside his/her domicile (home) state, the weapon must be transferred 1st to a SOT holder within the buyer’s state, similar to a Title 1 firearm transaction. It must go to a FFL/SOT dealer in the buyer’s state before going to the buyer.

D) Manufacturing NFA weapons – In 1986, the great President Ronald Reagan signed a bill that basically stopped the making of any new machineguns. The Firearm Owners Protection Act, which would loosen restrictions on gun ownership with the reopening of interstate sales of long guns on a limited basis, legalization of ammunition shipments through the U.S. Postal Service (a partial repeal of the Gun Control Act), removal of the requirement for record keeping on sales of non-armor-piercing ammunition, and federal protection of transportation of firearms through states where possession of those firearms would otherwise be illegal, also contained an amendment, The Hughes Amendment, (William J. Hughes D- N.J.) which prohibited civilians from owning any machine gun manufactured after 1986. All the other 5 categories (SBRs, SBSs, Silencers, AOWs and Destructive Devices) however can still be made, even by an individual, if he/she first applies for and receives permission to do so. They will file an ATF Form 1 (maker form) and pay a $200 make tax fee. A civilian can still legally own any machinegun that was created PRIOR to May, 1986 as long as they get approval on the ATF Form 4. The only individuals that may possess a machinegun manufactured AFTER May 1986 are law enforcement and military, so there is a limited quantity available.

E) There are special states listed below when it comes to Class III NFA weapons. Part of the Form 1 or Form 4 approval process requires that you need to get local Chief Law Enforcement Official (CLEO), Sheriff or Chief of City Police to sign off on your form. Well, several of these states passed bills that makes them a SHALL SIGN state which means the Sheriff or Chief MUST sign approval for your transfer unless there is something in your National Instant Criminal Background Check System (NICS) background check that would otherwise prevent it. Some officials have erroneously associated their approval with liability on their part. When in all actuality, the signoff in the ATFs eyes is ONLY to state that the individual has nothing negative in his or her NCIS check. Corporations (LLC, INC, etc.) and Trusts (Revocable) do NOT need CLEO signoff or fingerprints (still need ATF approval) however they may have tax implications*.

Alaska signed into law May 27, 2010

Arizona effective July 24, 2014

Arkansas effective April 1, 2015

Kansas effective July 1, 2014

Kentucky effective July 15, 2014

Maine effective November 2015

North Carolina effective August 6, 2015

North Dakota effective April 2015?

Ohio effective March 19, 2015

Oklahoma effective November 1, 2014, by overwhelmingly override of a governor veto.

Tennessee effective July 1, 2003

Utah effective May 13, 2014

West Virginia effective July 3, 2015?

These states effectively are understood to have a mandatory state police shall sign: Louisiana effective May 11th for suppressor, SBR, SBS mandatory Louisiana State Police sign off Maryland has Maryland State Police sign off

*NOTE: HOWEVER, According to ATF 41F (which won’t be enforced until July 14th, 2016), the CLEO signature requirement will be removed for customers who are registering as an individual. Instead of a signature, there will be a notification requirement – which is much easier since the CLEO will no longer have the power to prevent your NFA purchase.

All pending applications from before the July 14, 2016 enforcement date will be grandfathered under the existing rules.

If you’re registering using a trust or corporation (which is the best option for most customers) then, effective July 14, 2016, you’ll need to submit both fingerprints and passport photos for every responsible person with the application.

Once you receive an approval under the new rules, you’ll be exempted from having to submit fingerprint cards or passport photos again for 2 years from the date of the most recent approval.

F) Something we consider interesting, and is a generally unknown fact, is that since the NFA went into effect in 1934, there has only been ONE single felony committed in the whole United States since 1934 that involved a legally registered NFA firearm. It was committed as luck would have it, by a corrupt police officer who went to a drug house and shot someone there. He used his legally acquired sub machinegun to commit the crime. We hear all the time of machineguns and sawed off shotguns in the news by those anti-gun, 2nd amendment hating liberals, but these have all been by individuals possessing an illegal, non registered weapon. There are millions of records of legally owned entries on the NFA registry, but we never hear about the law abiding individuals, just the few criminals out of the few thousand potential individuals.

The (6) distinct types of Class III NFA weapons are:

1) Machineguns – Sometimes referred to as fully-automatics, etc… any firearm which fires more than 1 bullet for each individual pull of the trigger.

2) Short Barreled Rifles (SBR) – Rifles with barrels less than 16″.

3) Short Barreled Shotguns (SBS) – Shotguns with barrels less than 18”.

4) Silencers (Suppressors). Silencers/Suppressors are never portrayed accurately in the movies. If the bullet speed breaks the sound barrier, you WILL hear a pop. Suppressors are meant to alter the signature of a weapon so that it sounds like something else and/or the sound heard doesn’t mark the shooter’s position as easily as a non-suppressed weapon. .22 cal firearms can be suppressed very well though. You can make them so quiet that the action cycling produces more sound than the fired bullet does. With other calibers, sub sonic ammo can be used to lessen the signature as the bullet leaves the barrel. Best analogy I can give is a normal suppressed 5.56/223 from an AR15 will sound more like a .22 cal. rifle being fired.

5) Any Other Weapon (AOW) – these are usually things that don’t meet the other criteria above. Put a fore grip on a pistol, guess what? You JUST made an AOW weapon and if the proper paperwork and approval were not obtained prior, you have violated NFA regulations and possess a contraband weapon that carries severe fines and penalties. Other common AOW classifications are these wallet holsters you see that are meant to be/could be fired while the weapon is still in the holster. Pen guns are another example. AOWs are a little special in that the transfer tax for them is only $5.00. Ironically, the “maker” of the AOW still has to pay a $200 maker Form 1 fee just like he/she would to make a SBR, SBS or Silencer.

6) Destructive Devices (DDs) – these are self explanatory, but the ATF has classified several classes of shotguns now as destructive devices. The infamous ‘Street Sweeper’ shotgun is considered a DD by the ATF and falls into the title 2/NFA realm.

The ATF forms usually used in dealing with these weapons are …

1) ATF Form 1 – Maker Form – used by non manufactures to make NFA weapons – for civilians, only Short Barrel Rifles, Short Barreled Shotguns, Silencers and AOWs can still be made (after May 1986). The ‘one time’ tax stamp for this form is $200. Maker will received an approved form back from ATF and he/she can then make the item in question. Once made, if transfer of ownership is ever needed, this would be facilitated on a Form 4 below.

2) ATF Form 2 – Manufacturer Registration Form – used by manufacturers only.

3) ATF Form 3 – Dealer to Dealer tax-free form. Any SOT can transfer to any other SOT tax free NFA weapons he/she has in their possession/ownership. This is usually done when someone buys an item and it is transferred from a dealer in one state to a dealer in the buyer’s state to facilitate the approval/filing process.

4) ATF Form 4 – Tax paid to/from individual form – used when a NFA item is transferred TO or FROM an individual. Even if the individual transfers the said item to a SOT holder/dealer, there still is a $200 transfer tax. Once the SOT has it, they can transfer it back out to another SOT holder tax free (Form 3) or directly to another individual in their state on a tax paid (Form 4).

5) ATF Form 5 – Used to transfer NFA items to police departments for official use – tax fee transfer. Dealer use only. 6) ATF Form 5320 – Used in the Interstate Transportation of all Title 2 firearms. If you are traveling between states, you WILL need to fill this form out a few weeks in advance. NFA weapons must remain in the possession of the registered owner so short of just a few exceptions; you may not permit anyone to have possession of your weapon without you being in immediate presence.

All of us here at All American Arms can make your NFA Class III weapons purchase painless! It’s easier than buying a car. We will walk you through the process, and assist in filling out the forms properly the first time, so there is no ‘back and forth’ with the BATFE. If you have any questions on the process, or are unsure of what you need to get the process started, call us and we’ll be more than happy to assist you!

LEGAL DISCLAIMER: Please note that this content is not legal advice and does not constitute as an attorney / client relationship. If you need professional legal advice, please contact a qualified attorney that practices in this field.