Excise tax on tying commercially
In the parking lot above my fishing spot on the Lower Henry's Fork, I noticed this sign.
The project is funded by the federal tax on wholesale fishing gear including commercial tiers sales.
I have paid the tax in the past. Good to see some application of the proceeds.
I myself have never heard of this excise tax on fishing gear. Still it's nice to know tax dollars are being put to good use.
Trout don't speak Latin.
It is on wholesale sales which includes flies tied for commercial purposes.
That tax covers all of the sport fishing products, weather it's wholesale or retail. Most people that deal with the tax, refer that as the 720 tax. It's the form 720 that you use on a quarterly basis. Rod builders, lure makers, tackle box makers, etc. will use this form and file quarterly statements and pay the respective amounts. Good to see the sign. Randy
To my knowledge, it is a "producer" tax and not a retail tax. Otherwise, items would be taxed twice: the tier would pay the tax, and the guy who ultimately buys the product would pay it again.
Not to get this confusing but the end user actually does pay. If you think about it, you pay the bill and tack on extra charges to defray your cost. But yes, the tax is only paid once. Randy
And this surprises you? Of course the manufacturer, in this case the tyer, is taxed on the wholesale income he/she derives from the sale of his/her product to the retailer. The retailer then pays income tax on the income the store derives. Hey, and don't forget the state sales tax, the county tax and in some locales the city tax. They are paid directly by the consumer at the point of sale.
Originally Posted by Byron haugh
Last edited by Allan; 06-20-2013 at 08:11 PM.