Sporting Goods Excise Tax Modernization Act Looks to Close Tax Loophole

DOWNERS GROVE, ILLINOIS (May 12, 2025) – Section 4162 of the Internal Revenue Code defines sport fishing equipment and outlines the treatment of certain resales. It includes items like fishing rods, reels, lines, spears, artificial lures, hooks, tackle boxes and electric outboard boat motors. The Sporting Goods Excise Tax Modernization Act has been introduced to close a tax loophole in Section 4162.

The Pittman-Robertson Wildlife Restoration Act and the Dingell-Johnson Sport Fish Restoration Act have provided states and territories with funding for wildlife restoration, conservation, hunter education programs and boating access programs.  These programs, funded through excise taxes on sport fishing and archery equipment, have contributed more than $1.3 billion in FY2025 to support conservation efforts across the country.

A loophole in current tax policy allows some online purchases of imported sporting goods to bypass these excise taxes when purchased directly from foreign sellers, subsequently skipping the required contribution to conservation funds. Many consumers are unaware that they may be responsible for these taxes, and even those who are aware often struggle to navigate IRS guidelines on calculating and paying them. A recent report recommends that Congress address this issue by ensuring that US online marketplaces are responsible for collecting and remitting these excise taxes.

For more information on the Sporting Goods Excise Tax Modernization Act click here. If you would like to contact your elected officials about this legislation, please click here and scroll to the bottom of the page to find your Representative and Senators.