April 7, 2020
The Honorable Steven Mnuchin Secretary
U.S. Department of Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C., 20220
Dear Secretary Mnuchin:
I appreciate your leadership and efforts in providing relief for millions of people and small businesses across the country impacted by COVID-19 through the CARES Act. However, due to the severe economic harm felt by the recreational fishing industry, I am writing to request further support for our businesses, by delaying payments of the fishing equipment excise tax for 90 days, which would provide much needed relief for the industry.
As you know, the Internal Revenue Code imposes an excise tax on the sale of sport fishing equipment, bows, archery equipment and arrow shafts. This tax is imposed on the manufacturers (a term which includes producers and importers) of these products. The excise tax rate for most sport fishing products is 10 percent. For an industry with relatively low margins, this tax is significant. However, the industry pays the excise tax willingly, knowing that the tax is put to good use to fund fisheries conservation and public access projects by the state fish and wildlife agencies through the Sport Fish Restoration and Boating Trust Fund.
While fishing is currently allowed in most parts of the country during the COVID-19 pandemic, the industry has ground to a halt. Manufacturing and retail operations are being shut down, payments on orders are being delayed and new orders are not coming in. This is severely hurting the recreational fisherman industry, which contributes about $125 billion in annual economic activity and supports over 800,000 jobs.
Delaying the payment due date for the federal excise tax would provide significant relief for companies that are struggling to keep their payroll going and pay for basic business operations, something Congress intended to provide through the CARES Act. The next fishing equipment excise tax payment due date is later this month. We therefore appreciate your prompt attention to this request and ask that you make and announce the determination by the end of this week, or as soon as possible.
Thank you again for your leadership on this very important issue, and for your prompt consideration of this request.
Sincerely,
Kevin Hern
Member of Congress