Why It Matters: The American System of Conservation funding is a highly successful model unique to the rest of the world. The Wildlife and Sportfish Restoration component of the Model provides more than $1.3 billion in funding for fish and wildlife conservation each year through excise taxes on firearms, ammunition, archery equipment, fishing tackle, and motorboat fuels. However, some foreign manufacturers are evading the excise tax requirements through direct-to-consumer sales. Senators Tommy Tuberville and Congressional Sportsmen’s Caucus (CSC) Member Mike Crapo have introduced legislation to address the growing problem and protect the most successful conservation funding strategy ever devised.
Highlights:
- A critical component of conservation funding in the United States is based on excise taxes collected at the manufacturer level on fishing and archery equipment, which funds the Wildlife and Sport Fish Restoration (WSFR) Programs.
- It is estimated that tens of millions of dollars in excise tax revenues are currently being avoided through direct-to-consumer sales of foreign fishing and archery equipment facilitated by online marketplaces.
- The Congressional Sportsmen’s Foundation (CSF) has been working with the American Sportfishing Association and Archery Trade Association and Members of the CSC to develop a solution.
Last week, Senators Tommy Tuberville and Mike Crapo introduced the Sporting Goods Excise Tax Modernization Act (S. 1649) to close a loophole that allows foreign manufacturers of fishing and archery equipment to evade conservation excise taxes by selling direct to consumers in the United States. A similar version of the bill (H.R. 1494) was recently introduced in the House by CSC Co-Chair Congressman Jimmy Panetta and CSC Member Rep. Blake Moore, demonstrating strong bipartisan and bicameral support for protecting conservation funding.
“The American System of Conservation has been vital to restoring and protecting the abundant fish and wildlife resources we have in this country today,” said CSF Senior Director of Fisheries Policy, Chris Horton. “We’re grateful that Senators Tuberville and Crapo are leading the effort on the Senate side to protect the unique and highly successful Wildlife and Sport Fish Restoration Programs while safeguarding the competitiveness of U.S. based manufacturers and importers of fishing tackle and archery equipment.”
A study published by the Government Accountability Office (GAO) in 2024 acknowledged the importance of the excise taxes on fishing and archery equipment for fish and wildlife conservation while also highlighting the challenges with collecting these taxes when products are sold direct to consumers via electronic commerce. The GAO further recommended that Congress make online marketplaces facilitators, not the individual consumer, responsible for collecting the sport fishing and archery equipment excise taxes.
The Sporting Goods Excise Tax Modernization Act will meet the GAO’s recommendation and protect a cornerstone of conservation funding in the U.S. CSF looks forward to working with our champions in both the House and Senate to ensure the bill becomes law.
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