The Archery Trade Association Celebrates the Introduction of the Sporting Goods Excise Tax Modernization Act
NEW ULM, MN—The Archery Trade Association would like to thank and commend U.S. Representatives Jimmy Panetta (D-CA) and Blake Moore (R-UT) for the introduction of the Sporting Goods Excise Tax Modernization Act to the United States Congress.
This bipartisan piece of legislation will address the Federal Excise Tax (FET) slippage loophole that plagues the archery and fishing industry’s retailers and manufacturers, requiring internet marketplace facilitators to collect and remit the required FETs on imported products sold through them to U.S. customers.
FET slippage is the loss of federal excise tax dollars from internet marketplace facilitators brokering purchase deals from foreign manufacturers that sell directly to U.S. customers. This practice provides a loophole for internet marketplace facilitators and foreign manufacturers to avoid the 10-11 percent FET U.S.-based manufacturers pay.
“U.S.-based manufacturers and retailers who are required to pay this tax are put at a disadvantage when competing against foreign manufacturers,” said Jeff Poole, ATA president and CEO. “Leveling the playing field for our U.S.-based members remains a top priority for the Archery Trade Association’s lobbying efforts.”
“The conservation and recreational value provided by excise tax revenues collected on the sale of archery and sportfishing equipment is not only important but vital to state fish and wildlife agencies,” said Dan Forster, ATA vice president and chief conservation officer. Forster further states, “This legislation addresses a critical loophole in the collections model that will help ensure these important funding streams are maintained.”
Recently, the Government Accountability Office (GAO) released a report titled “Excise Taxes – Action Needed to Improve Compliance for Sport Fishing and Archery Imports.” The Sporting Goods Excise Tax Modernization Act is in direct alignment with the GAO’s report and recommendation on this issue. Since the release of this report, the ATA and the American Sportfishing Association, along with our many partners, have aggressively pursued a legislative fix.
The Archery Trade Association will continue to work with and lobby Congress until this issue is resolved, while providing updates on the Sporting Goods Excise Tax Modernization Act and its legislative progress.
For more information, contact Dan Forster, ATA’s vice president and chief conservation officer, at (507) 233-8143 or danforster@archerytrade.org.
Serving our members since 1953, the Archery Trade Association is the leading organization for manufacturers, retailers, distributors, sales representatives and others working in the archery and bowhunting industry. The ATA works to increase the recruitment and retention of new, current and once-active archers and bowhunters, while serving as a driving force in defending, educating and lobbying for the greater good of the industry and sport. The ATA preserves and promotes archery and bowhunting’s rich heritage to ensure active consumer participation, and successful manufacturing and retailing for generations to come. The ATA owns and operates the ATA Show, the archery and bowhunting industry’s largest and longest-running trade show worldwide.
