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Bill to offset ATF suppressor tax advances amid hearing that split testimony between safety and fiscal concerns
Summary
Rep. Lucas Schubert introduced HB 854 to provide a refundable $50 state credit to offset the $200 ATF federal tax on firearm suppressors; supporters framed it as a hearing-safety incentive and youth-hunter encouragement, while the Montana Society of CPAs opposed adding a new state tax credit.
Representative Lucas Schubert opened the hearing on House Bill 854, proposing a refundable $50 Montana income tax credit — one per taxpayer per year — to offset the $200 federal transfer tax required to acquire a firearm suppressor under the National Firearms Act.
Schubert said the pilot credit would expire after tax year 2027, include automatic contingencies if the federal tax changes, and is aimed at reducing noise-induced hearing damage among hunters and recreational shooters. Proponents included sportsmen, a senator appearing in support, the American Suppressor Association and the NRA. Witnesses described suppressors as hearing-protection devices that reduce peak decibels and help youth and novice shooters learn more comfortably; industry witnesses and a tax accountant said a $50 state credit could push more buyers to purchase suppressors that already require background checks and a federal stamp process.
Opponents included the Montana Society of CPAs, which testified against adding tax credits because of code complexity; DOR staff attended as informational witnesses and explained implementation and recordkeeping issues. Committee members raised implementation and privacy questions about whether the state would keep purchaser-level records linked to suppressor ownership and asked about the fiscal note: the sponsor and witnesses cited an expected revenue impact in the low hundreds of thousands — approximately $182,000 per year / about $362,000 in the upcoming biennium, per sponsor references to the fiscal note.
Additional technical points: witnesses noted that suppressors are federally regulated (background checks, fingerprints, tax stamp), that prices vary (common prices range roughly $300–$1,200 depending on caliber and technology), and that suppressors are widely used on rifles, semiautomatic pistols and some shotguns but are not effective on most revolvers because of the cylinder-barrel gap.
Why it matters: the proposal uses state tax policy to offset a federal excise-like stamp; it raises policy questions about state subsidization of items regulated federally and about privacy and recordkeeping if the state were to link tax credits to federally registered suppressors.
What’s next: the committee discussed portability of records and the fiscal-note assumptions; members recommended further deliberation and possible amendments on administration or privacy safeguards.
Quotes "This bill offers a $50 tax credit…to offset the cost of the ATF's $200 tax for a Form 1 or Form 4 purchase of a firearm suppressor," Representative Lucas Schubert said, introducing the measure. "Suppressors have been one of the most heavily regulated and taxed items in this country since 1934," said Owen Miller with the American Suppressor Association.
Ending Committee members requested additional details on implementation, potential recordkeeping and privacy protections and awaited the fiscal office’s formal estimates before considering any vote.
