ATF eRegulations

§ 479.39 Engaging in more than one business at the same location.

1. a.(a) If a person engages in more than one taxable business under 26 U.S.C. 5801 at the same location during a taxable year, the person must pay the special (occupational) tax imposed on each such taxable business.

   1. 1.(1) A taxable business is one of three distinct types of NFA business activity conducted by a person at a business premises: importing, manufacturing, or dealing in firearms regulated by this part.

   2. 2.(2) During a taxable year, a person must pay only once for each type of business activity conducted at the business premises (notwithstanding the number of licenses under the GCA that the person needs to conduct that taxable business activity).

      1. Example 1 for paragraph (a)(2)(Example 1) A person obtains a Type 07 (to manufacture firearms other than destructive devices, etc) license and a Type 10 (to manufacture destructive devices, etc) license under the GCA and engages in both types of manufacturing activities for NFA firearms at the same business premises. Both licenses fall under the same NFA business activity because both are manufacturing licenses, and manufacturing is one of the three NFA taxable business activities. Therefore, the licensee must pay only one Class 2 SOT (manufacturing NFA firearms). The person does not need to make two SOT payments for manufacturing activity merely because the person holds two licenses for different manufacturing sub-types (i.e., Type 10 and Type 07).

      2. Example 2 for paragraph (a)(2)(Example 2) The person in example 1 also engages in the business of dealing in NFA firearms at the same premises, but does not obtain a separate dealer license because the GCA licensing scheme allows licensed manufacturers to also deal in the same types of firearms they manufacture at the same premises without obtaining a separate dealer’s license. The Class 2 SOT also allows a manufacturer to deal in NFA firearms without paying a separate SOT for dealing (the Class 1 SOT (importing NFA firearms) does the same for importing and dealing). Therefore, the manufacturer would have two licenses, Type 07 and 10, and pay one Class 2 SOT, covering manufacturing both NFA firearms and destructive devices, and dealing in NFA firearms, at the same business premises.

      3. Example 3 for paragraph (a)(2)(Example 3) The person in example 2 decides to also obtain a Type 08 (to import firearms other than destructive devices, etc) license under the GCA. The person would have three licenses (Types 07, 08, and 10), engage in three taxable NFA business activities (manufacturing, importing, and dealing), but would pay only two SOTs (Class 1 for importing, and Class 2 for manufacturing); dealing would be included under both the manufacturing and importing SOTs. If the person also obtained a Type 11 license (to import destructive devices, etc), the result would be the same because both importing licenses would be covered by the Class 1 SOT, as would dealing in the imported items.

      4. Example 4 for paragraph (a)(2)(Example 4) person obtains a Type 10 (to manufacture destructive devices, etc) license under the GCA. Destructive devices are NFA firearms. This person thus pays a Class 2 SOT for manufacturing. The person also deals in destructive devices, but does not obtain a GCA Type 09 (to deal in destructive devices) license because this is the same type of firearms the person manufactures. The manufacturing licenses allow a licensee to also deal in the same type of firearms without a separate dealer’s license, as do the importing licenses. The Class 2 SOT also allows a manufacturer to deal in NFA firearms without paying a separate SOT for dealing (the Class 1 SOT (importing NFA firearms) does the same for importing and dealing). However, later the person also decides to deal in NFA firearms other than destructive devices, but does not manufacture them. As a result, the person must obtain a Type 01 (to deal in firearms) license. The person now has two licenses, Type 07 for manufacturing and Type 01 for dealing, and must pay two SOTs (Class 2 for manufacturing and Class 3 for dealing).

      5. Example 5 for paragraph (a)(2)(Example 5) A person obtains a Type 10 license to manufacture NFA destructive devices. The person must therefore also pay a Class 2 SOT for manufacturing. The person also deals in the same destructive devices they manufacture, so does not obtain a dealer’s license because the Type 10 license permits dealing in the destructive devices the person manufactures. Similarly, they do not pay a SOT for dealing because the Class 2 SOT permits dealing if the person does not have a separate dealer’s license. However, later, the person decides to deal in NFA firearms and destructive devices at the same premises. The person would have three licenses, Type 10 (to manufacture destructive devices), Type 01 (to deal in firearms), and Type 09 (to deal in destructive devices), but the person would pay only two SOTs (Class 2 for manufacturing, and Class 3 for dealing) because both dealing licenses fall under the same NFA taxable business (dealing). The person does not need to make two SOT payments for dealing activity merely because the person holds two licenses for different dealing sub-types (i.e., Type 01 and Type 09).

2. b.(b) This section does not require a manufacturer or importer to also qualify as a dealer if such manufacturer or importer also engages in business on their qualified premises as a dealer (unless they obtain a separate dealer’s license). However, a qualified manufacturer who engages in business as an importer must also qualify as an importer. Similarly, a qualified importer who engages in business as a manufacturer must also qualify as a manufacturer. Further, a qualified dealer is not entitled, merely by virtue of being a qualified dealer, to engage in business as a manufacturer or importer.