Class 3 Firearms Dealer.

Discussion in 'NFA Firearms & Related Items' started by Tony22-250, May 20, 2009.

  1. Tony22-250

    Tony22-250 New Member

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    Location:
    Snellville, GA
    In the future i would like to get my Class 3 Dealers License! What exactly is a Class 3 and what can you do with it? Well here it is.

    Only one question? Who do i start talking to to acquire this permit?

    "Class 3" refers to a firearms dealer who has paid a special tax, called the "Special Occupational Tax" (SOT) to deal in machineguns and other National Firearms Act (NFA) weapons.

    Machineguns, Sound suppressors, Short-Barrel Rifles and Shotguns, and Any Other Weapons (AOW) are all regulated and taxed under the National Firearms Act of 1934 (NFA) as amended by Title 2 of the Gun Control Act (GCA) of 1968.

    Semi-auto and all other firearms except large-bore or explosive Destructive Devices are regulated under Title 1 of the Gun Control Act (GCA).

    What most people mistakenly call Class 3 is properly referred to as NFA or Title 2 firearms.

    A Class 3 SOT dealer is a dealer of NFA firearms
    A Class 2 SOT manufacturer is a manufacturer of NFA firearms
    A Class 1 SOT importer is an importer of NFA firearms

    Type 1 FFL is a Title 1 dealer or gunsmith
    Type 2 FFL is a Title 1 dealer doing business as a pawnbroker
    Type 3 FFL is a licensed collector of Curio & Relic (C&R) firearms
    Type 6 FFL is a licensed maker of ammunition and reloading components other than Armor Piercing ammunition
    Type 7 FFL is a Title 1 manufacturer of firearms, ammunition and ammunition components other than NFA, Destructive Devices and Armor Piercing ammunition
    Type 8 FFL is an importer of Title 1 firearms and ammunition
    Type 9 FFL is a dealer in Title 1 firearms including NFA destructive devices, but no other NFA
    Type 10 FFL is a manufacturer of Title 1 firearms, ammunition and ammunition components, including NFA Destructive Devices but no other NFA, and not including Armor Piercing ammunition
    Type 11 FFL is an importer of Title 1 firearms, ammunition and NFA Destructive Devices, but no other NFA

    To get a Class 3 SOT status, you need a dealer or manufacturer FFL which includes Type 1, 2, 7, 8, 9, 10 or 11 - and pay a yearly $500 tax due every July 1st.

    To get a Class 2 SOT status, you need a manufacturer FFL, which includes Type 7, 10 - and pay a yearly $1000 or $500 (reduced rate for small manufacturers) tax due every July 1st.

    To get a Class 1 SOT status, you need an importer FFL, which includes Type 8, 11- and pay a yearly $1000 or $500 (reduced rate for small importers) tax due every July 1st.
    Last edited: May 20, 2009
  2. UncleFudd

    UncleFudd Member

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    Mar 23, 2008
    Messages:
    564
    Location:
    Phoenix, Az
    Call my manager at caswells, Bridger Kimbal and he will help you with this. I have had one since 1978 and I don't think they have changed much nor the stuff that you must do to become a dealer.
    I am not at the range so I don't have all the info to help you but it is not as difficult as they make it sound, it just takes some time.
    Call him at toll free 1-888-727-4668 www.caswells.com.
    He will be out of town for the long weekend beginning Fri and will return Tue if you do not reach him tomorrow.
    Hope this will help you to get start.


    UF
  3. Tony22-250

    Tony22-250 New Member

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    Location:
    Snellville, GA
    Thanks Fudd i will do that and i got your PM im going to do so probably next weekend cause i have stuff to do this weekend.
  4. TOOHSOTKIL

    TOOHSOTKIL New Member

    Joined:
    Jan 28, 2009
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    315
    Location:
    Curracus
    Call a-t-f, Georgia branch. You will need fingerprint card/passport photo.

    $90.00 FFL license (three years)
    $500.00 due 'each' year on the above date (SOT-1-2-3) you pick.
    If you move up in sales $$ it will change to $1,000.00 per year.

    Store front(?) may depend on State. State laws rule, if your State does not allow SOT dealers, your out..period!
    Outstanding tax records.

    This is a dealers license, not for your collecting or purchases.
    Very-very deep pockets.
    These items don`t fly off your shelves, each one can require/take up to 90 days+ to transfer out sold.

    Starting around 3k for a MAC10 and moving rapidly to 10k and up-per piece.

    Yep you pay for them, just having 10 pieces...30-150k$

    You can move somewhat down with post May dealer samples, but these are not money makers, simply fodder. You will need non NFA items to sell, new/used gun stock too. Some AR15`s Remington/Savage/Browning ect. to stay afloat.........ammo, parts, the list is long.

    Is it really what you want to do??
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