Three crucial taxes for Manufacturers of Sport Fishing Equipment

It is well-known that sport fishing equipment is subject to a Federal Excise Tax, which is paid by manufacturers, importers, and retailers. However, in addition to this Federal Excise Tax, there are 2 more taxes that apply to sport fishing equipment. 

These additional taxes, also paid by manufacturers, importers, or retailers, include:

• State and Local Sales Tax

• Import Duties and Tariffs

These taxes collectively support public services, conservation programs, and regulated international trade.

Apart from excise taxes, some states have introduced additional taxes to fund fish and wildlife conservation efforts, such as a conservation sales tax. Unlike excise taxes applied specifically to sporting goods like firearms, ammunition, archery equipment, fishing tackle, and motorboat fuel, a conservation sales tax is generally applied to all taxable goods.

This broader tax serves as an alternative funding method to support state fish and wildlife agencies, which face rising costs for natural resource management. For example, in Missouri, the conservation sales tax—set at 1/8th of 1%—has provided significant and consistent funding, generating at least $100 million annually since 2012. The revenue collected through this tax is allocated expressly for conservation purposes, ensuring stable and reliable financial support.

Despite legislative efforts to repeal this tax, it remains a key component of funding natural resource conservation in Missouri and in other states considering similar measures. This tax is mainly paid by the manufacturers of sport fishing equipment.

Import duties on sport fishing equipment in the United States range from 3.7% to 9.2%, depending on the type of item. These duties are levied on various fishing products, including rods, hooks, fishing lines, landing nets, artificial baits, flies, plastic tackle boxes, reels, and reel parts.

Additionally, there is a 3% tax on the sale of electric outboard motors and fishing tackle boxes, imposed by the manufacturer, producer, or importer. These taxes help fund the Wildlife and Sport Fish Restoration programs, which are crucial for maintaining and enhancing fish and wildlife populations in the U.S.

While many goods are subject to import duties, the United States has Free Trade Agreements (FTAs) with several countries, which can exempt some items from these duties. Exemptions may apply to specific goods, such as certain electronic products or antiques over 100 years old. These measures support conservation while facilitating regulated international trade.

WRAP:

After reading this blog, you will gain a clear understanding of the three crucial taxes imposed on sport fishing equipment. You’ll learn about the federal excise tax, state and local sales taxes, and import duties, as well as the reasons these taxes are levied.