While there are numerous factors considered when setting the price of a product, among those factors are taxes. In this case, the relevant tax is the
Firearms and Ammunition Excise Tax (FAET). Pursuant to the
Section 4181 of the Internal Revenue Code, a manufacturer, producer, or importer is required to pay a 10% tax on the sale of all pistols or revolvers, and an 11% tax on all other firearms and ammo.
However,
this tax does not apply to any short barreled firearms if the NFA transfer
tax specified in Section 5811 has been paid.
Fortunately, with the passage of the BBB, the tax under Section 5811 will soon be set to $0 (January 1, 2026). As a result, short barreled rifles (and shotguns) will not be subject to the Firearms and Ammunition Excise Tax levied on rifle manufacturers, nor will they be subject to the $200 transfer tax previously levied on purchasers.