Understanding Transferable Machine Guns

 

As NFA-regulated items continue to grow in popularity, most serious firearm enthusiasts are already familiar with the legal status of suppressors, short-barreled rifles, and short-barreled shotguns. Those with experience know the process is not as difficult as many people assume. Still, there remains one area of NFA ownership that is less understood: machine guns. Despite being legal in many states, machine guns carry an air of mystery. This article explores the different categories, costs, ownership process, and commonly available models that private individuals can legally acquire.

 

Machine Gun Categories: Pre-Sample, Post-Sample, and Transferable

 

Fully automatic firearms fall into three categories: pre-sample, post-sample, and transferable.

 

Pre-sample machine guns were imported between the Gun Control Act of 1968 and the Hughes Amendment in 1986. These can be bought and sold between licensed dealers without needing a demonstration letter from law enforcement.

 

Post-sample machine guns are those manufactured after May 19, 1986. These are restricted to law enforcement, the military, manufacturers, and dealers who possess specific authorization letters. These firearms are not available to the general public.

 

The final category is transferable machine guns. These are the only fully automatic firearms that can be legally owned by civilians, assuming state law permits it. They must have been manufactured and registered before May 19, 1986, or imported and registered prior to 1968.

 

Supply and Cost

 

Due to the cutoff dates imposed by federal law, no new machine guns can be added to the transferable registry. This creates a fixed and shrinking supply, which continues to drive prices upward.

 

Entry-level transferable machine guns typically start at around $7,000. Prices for popular models like the Uzi or M16 can climb significantly higher. For example, an Uzi that sold for under $10,000 a few years ago might now fetch $14,000 or more. This steady appreciation has been the norm for decades. Prices rarely drop. At worst, they remain flat for short periods. Unlike vehicles, boats, or even high-end non-NFA firearms that lose value over time, transferable machine guns are widely considered strong investments, provided they are kept in working condition and legislation does not change.

 

The Purchase Process

 

Buying a transferable machine gun follows the same process as any other NFA item. If you have purchased a suppressor, you already know what to expect. The required paperwork includes the ATF Form 4, responsible person form, a recent photo, fingerprints, and the $200 tax stamp.

 

Ownership transfers can happen in a few ways, depending on the current status of the firearm and who holds it.

 

Dealer-Owned Firearms (Form 3 Transfers)

 

When a licensed dealer (FFL/SOT) owns the machine gun, it is typically listed "on a Form 3." If the dealer is located in your state, you can acquire the firearm directly through a Form 4 transfer. If the dealer is in another state, the firearm must first be transferred tax-free to a local in-state dealer using a Form 3. From there, a Form 4 is submitted to transfer it to you. This route requires only one $200 tax stamp. While you may avoid sales tax by purchasing out of state, there may be a transfer fee from your local dealer.

 

Privately Owned Firearms (Form 4 to Form 4 Transfers)

 

If the machine gun is currently owned by an individual or trust, and the seller lives in another state, the firearm must first be transferred to a dealer in your home state via Form 4. After that, the dealer will transfer the firearm to you through a second Form 4. Each of these transfers requires a separate $200 tax stamp, bringing the total to $400.

 

If both the buyer and seller reside in the same state, the firearm can transfer directly between parties via a single Form 4 and one $200 tax stamp. The same submission process applies: fingerprints, photos, and completed paperwork must be sent to the ATF and approved before ownership can be transferred.

 

Because the process can be intimidating, especially when large sums of money are involved, Capitol Armory frequently assists clients with these transactions. We provide consultation on the best path forward and help generate all necessary paperwork to ensure everything moves smoothly and securely.

 

Let Us Help

 

The different transfer methods and legal nuances can be overwhelming. Capitol Armory regularly helps clients locate the right transferable machine gun and guides them through the process from start to finish. If you have questions about machine gun ownership or want help with a transfer, feel free to contact us at [email protected] or call 512-879-1068.