Crapo, Tuberville Introduce Legislation to Level Playing Field for Sporting Equipment Businesses

Washington, D.C.--U.S. Senators Mike Crapo (R-Idaho) and Tommy Tuberville (R-Alabama) introduced the Sporting Goods Excise Tax Modernization Act to close a tax loophole that has resulted in lost revenue for state-led wildlife conservation efforts.  Foreign sellers should be held to the same tax regulations as domestic manufacturers, and this bill will ensure that happens.

“Federal excise taxes on certain recreational outdoor sporting equipment provide funding for conservation programs,” said Crapo.  “This bill closes loopholes on imported fishing and archery equipment that deprive fish and wildlife conservation programs of additional critical funds.  This move will help level the playing field for Idaho and American companies and strengthen existing conservation programs.”

“Alabama is proud to be home to hundreds of small businesses who make sporting equipment that outdoorsmen and conservationists rely on.  The last thing these business owners need is to be punished for producing goods right here in the U.S.A.” said Tuberville.  “Under President Trump, we are laser-focused on doing everything we can to encourage domestic production.  I’m proud to introduce this legislation with Senator Crapo which closes a loophole allowing foreign sellers to exploit our domestic retailers and rob money from our state conservation programs.”

Numerous conservation and sporting groups, including the Archery Trade Association, Association of Fish and Wildlife Agencies, American Sportfishing Association and The Conservation Fund have endorsed the legislation. 

"We thank Senators Tuberville and Crapo for their leadership in helping to make the Sport Fish Restoration and Wildlife Restoration funds whole," said Jim Fredericks, Director of the Idaho Department of Fish and Game.  "State fisheries programs count on these funds to maintain the good quality fishing opportunities that keep our anglers coming back for more."

"The archery industry applauds Senators Crapo and Tuberville for their exceptionally strong leadership and introduction of this high priority legislation,” said Dan Forster, Vice President & Chief Conservation Officer, Archery Trade Association.  “Holding foreign companies accountable for paying the federal excise tax is not only about protecting American businesses but it will help ensure that our conservation funding and outdoor heritage are protected for future generations."

“The Sporting Goods Excise Tax Modernization Act will ensure the future viability of the Sport Fish Restoration Fund by closing a loophole and securing millions of dollars in lost excise tax revenue to improve recreational fishing,” said Glenn Hughes, President and CEO of American Sportfishing Association.  “Since 1950, excise taxes on fishing equipment have provided $12 billion for conservation efforts and improved access for anglers across the country--a unique user-pay, public-benefit system that has become a cornerstone of the American conservation model.  We applaud Senators Tuberville and Crapo for introducing this legislation and for their commitment to the sportfishing industry, which contributes $230 billion to the U.S. economy each year.”

Complete text of the bill can be found here.  U.S. Representatives Blake Moore (R-UT-01) and Jimmy Panetta (D-CA-19) introduced companion legislation in the U.S. House of Representatives earlier this year.

BACKGROUND:

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

However, 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, leading to a shortfall of tens of millions of dollars from going 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 Government Accountability Office (GAO) report recommended that Congress address this issue by ensuring that U.S. online marketplaces, rather than consumers, are responsible for collecting and remitting these excise taxes.

The Sporting Goods Excise Tax Modernization Act would:

• Require U.S. online marketplaces to collect and remit federal excise taxes on imported archery and fishing equipment, treating them as the importer of record.
• Ensure that funding for state-led wildlife conservation efforts is not lost due to tax loopholes.
• Maintain fairness for domestic retailers who already pay these taxes on sporting goods they sell.
• Simplify the tax process for consumers, eliminate confusion and ensure that conservation programs receive the full funding they deserve.

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