Firearms are specifically Exempt
Last year I wrote to the legislature with regard to Representative Matt Shea’s Bill known as
HB 1990 and suggested a way to put a large sum of money into our economy through the repeal of Federal excise tax on firearms. The reply to my writing suggested the commerce clause would not permit Washington State to do this.
I have been scratching my head on this commerce clause for a while, what follows is a brief summary. The long version is attached as a PDF.
Title 18 Part 1 Chapter 1 Section 10 defines commerce as follows;
The term “interstate commerce”, as used in this title, includes commerce between one State, Territory, Possession, or the District of Columbia and another State, Territory, Possession, or the District of Columbia. The term “foreign commerce”, as used in this title, includes commerce with a foreign country.
Title 18 Part 1 Chapter 44 Section 921 defines commerce as follows;
(1) The term “person” and the term “whoever” include any individual, corporation, company, association, firm, partnership, society, or joint stock company.
(2) The term “interstate or foreign commerce” includes commerce between any place in a State and any place outside of that State, or within any possession of the United States (not including the Canal Zone) or the District of Columbia, but such term does not include commerce between places within the same State but through any place outside of that State. The term “State” includes the District of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States (not including the Canal Zone
).
Section 921 is specifically related to firearms and is very different from section 10.
I believe the federal excise tax is not authorized based on different definitions of the commerce clause.
Q. Why is there such a difference between these definitions of commerce?
A. Regulation of commerce is not a nationwide concept and cannot be applied to the States.
Q. What does any place in a State mean?
A. The “places” mentioned in S 921 are the places noted in section 7. Federal lands that are not within the jurisdiction of the State, however, they are within the boundaries of the State.
Q. Why is commerce between any place within a State (S921) different than commerce between one state (S 10)?
A. For the purpose of Ch 44 Congress has defined “State” as “the District of Columbia, the Commonwealth of Puerto Rico , and the possessions of the United States; all territorial.
Here is how it reads after clarification, as it pertains to Ch 44.
The term “interstate or foreign commerce” includes commerce between any area of land under federal jurisdiction that is within a State and any area of land under Federal jurisdiction that is outside the State, or within any possession of the United States (not including the Canal Zone) or the District of Columbia.
Reference to place in Ch44 S 921 is a place within a State or outside a State, that is under the exclusive legislative jurisdiction of Congress as per Article 1 Section 8 Clause 17 of the U. S. Constitution.
The interstate and foreign commerce referred to in Ch 44 S 921 is limited and only applies between such places. The Federal Government has no police powers regarding commerce of firearms as applied to Ch 44.
In short the Federal Government is not authorized to collect tax on firearms under the commerce clause unless the transfer is in places defined in section 7 of title 18.
~Whitney