NFA Gun Trust Lawyer Blog

A recent email from Dana Pickles at the US Dept. Of Justice Bureau of ATF NFA Branch stated the following changes for North Carolina

Effective January 11 2013 the ATF is handling North Carolina transfers as follows:

Machine Gun transfers from a dealer to a dealer on a Form 3 no longer require a North Carolina Sheriff permission letter to possess the Machine Gun (MG)

From a Dealer to a Gun Trust using a Form 4. If the Form 4 states that the MG is being acquired for scientific research and/or experimentation or in accordance with 14-409? then still need North Carolina Sheriff permission letter to possess Machine Gun.

But If the reason on the Form 4 states in accordance with 14-409 then the North Carolina Machine Gun Letter or permission from the Sheriff is not required.

All other NFA transfers on a Form 4 - no longer require the reason to state "In accordance with 14-288.8" to approve the transfer.

We have received numerous calls and emails regarding the December 2010 change in the laws in NC based on the poorly worded changes to NC:

NCGS Section 288.8 (b)(5) allows MG ownership for:

Persons who lawfully possess or own a weapon as defined in subsection (c) of this section in compliance with 26 U.S.C. Chapter 53, §§ 5801‑5871. Nothing in this subdivision shall limit the discretion of the sheriff in executing the paperwork required by the United States Bureau of Alcohol, Tobacco and Firearms for such person to obtain the weapon.

NCGS Section 14-409(b) provides in pertinent part:

a person who lawfully possesses or owns a weapon as defined by Subsection (a) of this section in compliance with 26 U.S.C. Chapter 53, §§ 5801‑5871. Nothing in this subdivision shall limit the discretion of the sheriff in executing the paperwork required by the United States Bureau of Alcohol, Tobacco and Firearms for such person to obtain the weapon.

The problem is that these provisions don't seem to allow acquisition, only continued ownership or possession. However, the statutes go on to say that sheriff can refuse to sign off to on the forms required to obtain ownership.

I have spoken to several NC lawyers about this, they all agree that the safest thing to do until further clarification develops is the have the sheriff sign off with the Machine Gun Permit which is different than the CLEO signature required for individual ownership of Title II firearms.

In addition, it appears that if the machine gun was lawfully purchased in another state, there would not be the need to obtain the sheriff's signature on a machine gun permit to purchase a machine gun as it was already owned.

This only applies to Machine Guns and not other Title II firearms. With the upcoming proposed changes to federal laws regarding assault weapons, it is still a good idea to transfer all existing firearms into a Gun Trust in states like NC that permit such transfers.

We were recently contacted by someone who wanted to move their NFA firearms to NC from another state. After filling out the Form 20, they received a rejection notice stating that the form needed to state the following in block 5 to be in compliance with NC state requirements.

So if you are planning on traveling to NC or moving there, it appears that you will need this language before the ATF will approve the permission to move or travel.

We were recently contacted by someone who wanted to move their NFA firearms to NC from another state. After filling out the Form 20, they received a rejection notice stating that the form needed to state the following in block 5 to be in compliance with NC state requirements.

So if you are planning on traveling to NC or moving there, it appears that you will need this language before the ATF will approve the permission to move or travel.

Recently we have seen the ATF deny ATF form 20's unless you include "In accordance with North Carolina General Statute 14-288.8" in Block 5 - The Reason for Transportation of the Firearms - (Example Permanent change of Address)

While this should not apply to silencers, it will not hurt to include the additional language on all transfers of NFA firearms to the state of North Carolina

If you are moving or traveling to North Carolina you might include something like the following language in Block 5:
Moving to North Carolina in accordance with North Carolina General Statute 14-288.8

Traveling to North Carolina in accordance with North Carolina General Statute 14-288.8

Some of our clients in North Carolina regularly ask about pistol permits and trusts. In response to this, we asked a North Carolina Gun Trust Lawyer ® to explain how the North Carolina Pistol Permit (Click for a Sample Permit) works and what is prohibited. Here is his response:

North Carolina G.S. Section 14-402 requires that any person obtaining a pistol by purchase or other transfer must first get a permit from the sheriff in his county of residence. The sheriff conducts a criminal background check to make sure the receipt of the pistol would not violate state or federal law. Trustees of NFA trusts are not exempt from this requirement, so for any handguns transferred to or purchased by a gun trust a permit must first be obtained. Section 14-403 states that a permit shall be issued to "any person, firm or corporation," which is broad enough to cover trustees. Thus, if the trustee passes the background check, there shouldn't be a problem in getting the permit.

§ 14‑402. Sale of certain weapons without permit forbidden. (a) It is unlawful for any person, firm, or corporation in this State to sell, give away, or transfer, or to purchase or receive, at any place within this State from any other place within or without the State any pistol unless: (i) a license or permit is first obtained under this Article by the purchaser or receiver from the sheriff of the county in which the purchaser or receiver resides; or (ii) a valid North Carolina concealed handgun permit is held under Article 54B of this Chapter by the purchaser or receiver who must be a resident of the State at the time of the purchase.

Once of the benefits of working with a Gun Trust Lawyer® is that should you move from one state to another, you can make any changes to your Gun Trust that are necessary to keep you in compliance with both state and federal laws. Similar situations occur if an authorized user is located in another state or relocates after the trust is created or funded.

The NFATCA had an article about a revision to NC Law that will put to rest the controversy over the use of Trusts and also apparently drop the Machine Gun Permit for residents of the state of North Carolina North Carolina HB650 was signed into law on June 23rd, 2011 and will become effective on December 1st 2011

H650 [Ratified] Page 5

SECTION 8. G.S. 14-288.8(b) reads as rewritten:

"(b) This section does not apply to:to any of the following:

(1) Persons exempted from the provisions of G.S. 14-269 with respect to any activities lawfully engaged in while carrying out their duties.

(2) Importers, manufacturers, dealers, and collectors of firearms, ammunition, or destructive devices validly licensed under the laws of the United States or the State of North Carolina, while lawfully engaged in activities authorized under their licenses.

(3) Persons under contract with the United States, the State of North Carolina, or any agency of either government, with respect to any activities lawfully engaged in under their contracts.

(4) Inventors, designers, ordnance consultants and researchers, chemists, physicists, and other persons lawfully engaged in pursuits designed to enlarge knowledge or to facilitate the creation, development, or manufacture of weapons of mass death and destruction intended for use in a manner consistent with the laws of the United States and the State of North Carolina.

(5) Persons who lawfully possess or own a weapon as defined in subsection (c) of this section in compliance with 26 U.S.C. Chapter 53, §§ 5801-5871.

Nothing in this subdivision shall limit the discretion of the sheriff in executing the paperwork required by the United States Bureau of Alcohol, Tobacco and Firearms for such person to obtain the weapon."

SECTION 9. G.S. 14-409(b) reads as rewritten:

"(b) It shall be unlawful for any person, firm or corporation to manufacture, sell, give away, dispose of, use or possess machine guns, submachine guns, or other like weapons as defined by subsection (a) of this section: Provided, however, that this subsection shall not apply to the following:

Banks, merchants, and recognized business establishments for use in their respective places of business, who shall first apply to and receive from the sheriff of the county in which said business is located, a permit to possess the said weapons for the purpose of defending the said business;

officers and soldiers of the United States Army, when in discharge of their official duties, officers and soldiers of the militia when called into actual service, officers of the State, or of any county, city or town, charged with the execution of the laws of the State, when acting in the discharge of their official duties;

the manufacture, use or possession of such weapons for scientific or experimental purposes when such manufacture, use or possession is lawful under federal laws and the weapon is registered with a federal agency, and when a permit to manufacture, use or possess the weapon is issued by the sheriff of the county in which the weapon is located;

a person who lawfully possesses or owns a weapon as defined by subsection (a) of this section in compliance with 26 U.S.C. Chapter 53, §§ 5801‑5871. Nothing in this subdivision shall limit the discretion of the sheriff in executing the paperwork required by the United States Bureau of Alcohol, Tobacco and Firearms for such person to obtain the weapon.

Provided, further, that any bona fide resident of this State who now owns a machine gun used in former wars, as a relic or souvenir, may retain and keep same as his or her property without violating the provisions of this section upon his reporting said ownership to the sheriff of the county in which said person lives."

If you are looking to Get a Machine Gun in North Carolina, you will have to wait until December 1, 2011 unless your Sheriff will issue you a permit.  For those who feel that current NC statutes do not permit the use of Trusts, you can starting using them on December 1, 2011.  Our North Carolina Gun Trust Lawyer® has seen no provision in the old law which does not permit a Trust to own or purchase NFA firearms and has been providing them for several years without any rejections by the ATF.  If you would like help creating a Gun Trust in North Carolina, Contact Us and we can give you more information on the process.

There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In North Carolina you can own the following items that are regulated the the National Firearms Act

Machine Guns*
Silencers
Any Other Weapon (AOW)
Destructive Devices (DD)
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)

In North Carolina you cannot own the following NFA restricted items.

None

In North Carolina Machine Gun ownership, possession, or transfer is only legal for

1. Banks, merchants, and recognized business establishments for use in their respective places of business, who shall first apply to and receive from the sheriff of the county in which said business is located, a permit to possess the said weapons for the purpose of defending the said business;
2. officers and soldiers of the United States Army, when in discharge of their official duties, officers and soldiers of the militia when called into actual service, officers of the State, or of any county, city or town, charged with the execution of the laws of the State, when acting in the discharge of their official duties;
3. the manufacture, use or possession of such weapons for scientific or experimental purposes when such manufacture, use or possession is lawful under federal laws and the weapon is registered with a federal agency, and when a permit to manufacture, use or possess the weapon is issued by the sheriff of the county in which the weapon is located.

Provided, further, that any bona fide resident of this State who now owns a machine gun used in former wars, as a relic or souvenir, may retain and keep same as his or her property without violating the provisions of this section upon his reporting said ownership to the sheriff of the county in which said person lives.

Follow this link to find out more about North Carolina and NFA restrictions on Class 3 Firearms