NOTE - THIS IS A QUOTE FROM THE OFFICIAL INDIANA CODE SITE; THIS ONLY APPLIES TO INDIANA.http://www.in.gov/legislative/ic/code/title35/ar47/ch5.html
If you look here, read down to:
35-47-5-8; this states that it's illegal to possess a machine gun in Indiana; class C felony
35-47-5-9; this states that it's illegal to operate a machine gun in Indiana; class B felony
35-47-5-10; exemptions for the two above law; notice it includes all the stuff you'd expect to find (governmental agencies and their officers, military, etc). But look closely at sub-item #7 - that allows for private ownership IF you have the appropriate Federal paperwork (i.e. - the tax stamp and form of transfer).
That is how, in IN, you can own certain NFA weapons. In IN, you can own SBRs, MGs, suppressors, and AOWs (any-other-weapons). Notice that you CANNOT own a sawed off shot gun in IN; there is no exemption for that (except for LE and gov official use).
So, Wayne, if there is a law that you can find that specifically prohibits the ownership of NFA stuff, then you'll have to find a law exemption in the statute.
There is some information I believe to be credible from the BATFE site (I'll try to find it again and post later) that discusses the topic of ownership if you're in a position to reside in one state, but keep the item in a different state. In other words, you can own an NFA item as an IL resident; you likely just can't possess it in IL. You could keep it at my home in IN, and even use it in IN, even as an IL resident! You are required to be the ONLY person that has access to the item; you would have to keep it in a locked container that was only accessible by you. The storage of the item is OK in my home, but the direct access must be only to you. A locked container satisfies that criteria. The real problem is somehow convincing your local LE agency to sign off the federal paperwork; you'd have to convince them that even though you own the item, it would not be kept in the state. Kind of silly, though, because who wants to own something they can't access easily? This methodology is important to those like me, that own NFA items, and would want to keep them in my ownership, if I got transfered to a different state for some short time. I don't want to have to sell stuff just because I got moved for a year or two to a different state. I can even lock them in a safety deposit box in a bank (singularly controlled access!) while I'm away.
Then, there is the topic of NFA ownership by corporations and trusts. That's a whole bag of tricks that gets deeply involved by lawyers and paperwork. It can be done, but it's much more involved. There are some advantages, but also some disadvantages. They must be kept used for "security" purposes, and be registered to a licensed company. It gets really deep. Not saying it can't or isn't done; I'm just not one who has the time/money to slug through that mess. Private ownership is legal in IN, so it's easy for me.
Further, the transer of my NFA stuff to my heirs is tax exempt; they don't have to pay the $200 per item! Oddly, beleive it or not, that $200 tax hasn't changed since 1934! It's been set at that amount forever! I often wonder if the Congress will see fit to make a huge increase in the transfer tax? That would greatly slow down the transfer of such items from person to person. You'd see a lot more items passed from generation to generation that way (tax free).
Found the link for ownership from another state:
see item "M22"http://www.atf.gov/firearms/faq/faq2.htm#m1
Also, for some reason that escapes me, notice that they refer to "silencers" in this site, but my actual From 4 paperwork (both of my tax paid forms) have the word "suppressor" on them, rather than "silencer". Apparently, they are now accepting either as a proper definition. At one time, they discouraged the use of the word "silencer", but perhaps conventional terminology got the better of them. Somewhere in another post, I had mentioned that "suppressor" is the proper term, but I am apparently wrong; the BATFE is now accepting either description, as evidenced by their own use of the word "silencer". A rose by any other name ...