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9/19/2017 7:27:10 PM
Posted: 10/3/2002 4:27:57 PM EDT
[Last Edit: 10/3/2002 4:28:52 PM EDT by 9_Inch_Twist]
What am I missing here?

I have decided to build a RRA AR-15 from the stripped lower up. I have spent a lot of time on thier web site. Here's my question.

RRA lists thier complete standard A2 post ban for $825.

They also list a complete standard A2 upper for $425.

The complete lower lists for $250.

This totals $675.

Does RRA charge $150. just for pinning the upper and lower together?
Link Posted: 10/3/2002 4:33:10 PM EDT
I got confused by that one recently as well.

A complete firearm costs more than the sum of it's parts because a complete firearm is subject to the federal excise tax of 200 dollars. Technically, when you buy the complete upper and complete lower, then assemble the two into a firearm, you are manufacturing a complete firearm and owe the feds the excise tax. It's probably a moot point unless you try to sell the rifle though.

From the most strictly legal standpoint it is probably safer to buy the complete rifle and bite the extra 150 dollar bullet. (you also get a mag, the box, maybe a sling and an owner's manual, which you won't get with the parts. So really it's cheaper buying it as a whole once you factor in the taxes and accessories.
Link Posted: 10/3/2002 4:45:58 PM EDT

Originally Posted By icemanat95:
"--- because a complete firearm is subject to the federal excise tax of 200 dollars."



I beleive the applicable excise tax is 11%.

Add a few middle man mark-up, then you get $850 rifle.
Link Posted: 10/3/2002 4:46:22 PM EDT
If you look closely and re-read the RRA site the
standard A2 comes with a NM trigger installed, so the actual difference is $50.00. Still excessive for mating a lower and upper, but that's why rolling your own is less expensive and more satisfactory.

If you want better prices, contact Pete in NH over in the Industry forum for deals that can't be beat.
Link Posted: 10/3/2002 5:37:05 PM EDT

Originally Posted By SBR7_11:

Originally Posted By icemanat95:
"--- because a complete firearm is subject to the federal excise tax of 200 dollars."



I belive the applicable excise tax is 11%.

Add a few middle man mark-up, then you get $850 rifle.



AAAH I had forgotten about the Pitman-Robertson Tax AKA Clinton slush fund!


Originally Posted By Aces-and-Eights:

If you want better prices, contact Pete in NH over in the Industry forum for deals that can't be beat.



Thanks, I did just that. Should have my "U.S. Property" stripped lower in a week or so.
Link Posted: 10/3/2002 11:48:57 PM EDT
Factory warranty may account for part of the difference too, i.e. Armalite complete rifles vs. Eagle Arms by Armalite lower receivers. Dunno about RRA. You might want to check what kind of warranty they offer and see if that's what the difference in price is.
Link Posted: 10/4/2002 10:57:31 AM EDT
Just a note. When you assemble the upper and lower receivers you are not creating a new firearm. That firearm was created when the lower was finished and assigned a serial number. The excise tax was paid on the lower.

Link Posted: 10/4/2002 3:33:17 PM EDT

Originally Posted By 9_Inch_Twist:
RRA lists thier complete standard A2 post ban for $825.

They also list a complete standard A2 upper for $425.

The complete lower lists for $250.

This totals $675.




Ok then the lower is $250 + $100 for the NM trigger + $38.50 tax equals $388.50 + $425 for the upper Totals $840.50 Add the cost of a sling, mag, owners manual & shipping would put it quite a bit over the assembled price. So where's the savings in "rolling your own"? I'll do it just the same for enjoyment but I thought I'd save a few bucks too.
Link Posted: 10/4/2002 4:25:04 PM EDT

Originally Posted By argh:
Just a note. When you assemble the upper and lower receivers you are not creating a new firearm. That firearm was created when the lower was finished and assigned a serial number. The excise tax was paid on the lower.



No - excise tax is NOT paid on a lower, only on complete, working firearms.

Assembling from a lower which has never been built into a complete firearm is considered 'manufacturing' by the ATF, because they received no excise tax on the firearm.

Assembling from a lower which was previously sold as part of a complete rifle is not considered manufacturing.

It's all about the money.
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