Beyond being responsible for about 10% of the price of your cartridges, the Federal Ammunition Excise Tax, or FAET, is a tax that is imposed on the sale of firearms and ammunition in the United States. It is charged by manufacturers to whomever buys it first – customers, retailers, or distributors.  It is included in every single round of ammo purchased – except for Law Enforcement, and a few (very few) other exempt parties.

The FAET was first established in 1919 as a way to generate revenue for the federal government and to fund wildlife conservation efforts. The tax is levied on the sale of all firearms, shells, and cartridges, and the rate is currently set at 10% of the manufacturer’s price for handguns and 11% for all other firearms and ammunition.

The way the FAET works is fairly straightforward. When a manufacturer sells a firearm or ammunition to a distributor or retailer, they are required to pay the tax to the federal government. The distributor or retailer then passes that cost on to the consumer by including it in the price of the firearm or ammunition.

Purpose

So, what is the FAET used for? As I mentioned earlier, the tax is primarily used to fund wildlife conservation efforts. Specifically, the funds generated by the FAET are directed to the Wildlife Restoration Program and the Sport Fish Restoration Program.

The Wildlife Restoration Program, which is also known as the Pittman-Robertson Act, was first established in 1937. The program is designed to provide funding for the conservation and restoration of wildlife habitats, as well as for the acquisition and development of public hunting lands.

The Sport Fish Restoration Program, which is also known as the Dingell-Johnson Act, was first established in 1950. The program provides funding for the conservation and restoration of fish habitats, as well as for the acquisition and development of public fishing areas.

Together, the Wildlife Restoration Program and the Sport Fish Restoration Program have been incredibly successful in promoting conservation and preservation efforts in the United States. Since their inception, these programs have provided billions of dollars in funding for wildlife and fish conservation efforts, as well as for the development of public lands and recreational areas.

Bottom Line

The Federal Ammunition Excise Tax is a tax that is imposed on the sale of firearms and ammunition in the United States. The tax is used to fund wildlife conservation efforts, specifically the Wildlife Restoration Program and the Sport Fish Restoration Program. While the tax may increase the cost of firearms and ammunition for consumers, some argue that it plays an important role in promoting conservation and preservation efforts in the United States.