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Federal sportfishing excise tax?

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Has anyone heard of this before? I was trying to order a Casting egg on a certain website and they tried hitting me with a 10% FSET tax? I've never seen it before just wondering if anyone has info on it.


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Think it's called the "Mitchell Tax" and should only apply to materials for sport fishing gear that are meant to have value added such as rod blanks, lure kits, etc. If material is not taxed along the way i think the finished goods are taxed as a whole at the wholesale level and collected  by the wholesaler, from the retailer. 



Was the casting egg being sold as unfinished? That would make it a supply and not a finished product.



Either way, it is all  taxed somewhere along the line, just not at the retail level if it is a finished product.



I will stand corrected ahead of time but it's something like what I described.


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Quonny B&T in RI sells them (or at least did last season). You won't see them in box stores. They are fairly easy to make as well. Just buy a wooden egg from a craft store and screw two eye hooks in it, Some guys thru-wire them, but that takes more work. You can also use old plug bodies with the hooks removed, but the eggs cast better IMHO ;)

 

-bd

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My understanding, which is pretty skimpy, is that it is a tax the manufacturer is supposed to pay on everything he produces, whether it is sold or not. The reason one lure manufacturer advertises that it is part of the price of his lures is that he is upset, and understandably so, about the common practice by many other plug builders to sell their lures at shows and on the internet without paying this tax......a tax that is supposedly meant to benefit of all of us fishermen. In any case, the price of all major company fishing tackle made in this country includes this tax already, so you are being "charged" it whether they advertise it or not. As for whether oversea companies have to pay it on what they sell in the US, I am unsure.

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I would guess the firms that actually itemize it have either been audited or are large enough that they are worried they will be. Your description is better than the one I posted. Is similar to a distillery or tobacco company that must account for and pay the tax before any product leaves the factory. I'm sure it is collected by US customs on imported products.


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It is a manufacturers tax, and is supposed to apply to similar products that are imported. When I tied flies commercially I had to pay the tax. Companies that import their flies also are required to pay the tax. If the company selling the taxable product is a second seller, meaning not the manufacturer, the tax cost should be included in the retail or wholesale price, but may not be disclosed as a tax to the consumer. Sounds like the seller is adding the tax as a separate item, which is legal, but most companies don't collect it that way.

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Wallop - Breaux Amendment

 

Yup. The proceeds are supposed to be distributed to the states, at least in part, as "matching funds".

 

It's also the stick used by NMFS to force states to segregate SW license funds from the general fund. Raid license fees for the general fund, risk losing the carrot of the matching funds.

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I have been hit with this tax a few times this winter ordering gear online. All the stuff was finished product. Extra tax...new saltwater license... I thought that when taxes went up license fees go down. Two new fees in the past couple of years is BS. Some dont mind...Some do. How about putting a trash can that someone will empty near some of the fishing sites.


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