Senators Introduce Bill to Close Tax Loophole on Imported Fishing Equipment
Keith Lusher 05.14.25
Legislation aimed at leveling the playing field for American sporting goods manufacturers and boosting conservation funding was introduced today in the U.S. Senate. The Sporting Goods Excise Tax Modernization Act, spearheaded by Senators Mike Crapo (R-Idaho) and Tommy Tuberville (R-Alabama), seeks to address a growing concern in the fishing and outdoor recreation industry.
The bill targets a tax loophole that has allowed foreign sellers to bypass excise taxes on sporting equipment when selling directly to U.S. consumers through online marketplaces. This loophole has resulted in lost revenue for wildlife conservation programs and placed domestic manufacturers at a competitive disadvantage.
“Federal excise taxes on certain recreational outdoor sporting equipment provide funding for conservation programs,” said Senator 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.”
Senator Tuberville emphasized the importance of supporting American businesses: “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.”
The legislation was introduced earlier this year in the House by Representatives Jimmy Panetta and Blake Moore, creating bipartisan momentum for the initiative.
Conservation Funding at Stake
The Dingell-Johnson Sport Fish Restoration Act and the Pittman-Robertson Wildlife Restoration Act have long provided essential funding for conservation efforts across the United States. These programs, funded through a 10% excise tax on most fishing tackle and similar taxes on archery equipment, contributed more than $1.3 billion in FY2025 to support conservation efforts nationwide.
The Sport Fish Restoration Fund (SFR) specifically supports habitat restoration, public access projects, and fisheries research through grants to state fish and wildlife agencies. Since its inception in 1950, the SFR has:
- Created and improved over 9,000 public boating and fishing access sites
- Supported 320 fish hatcheries that stock approximately 1 billion fish annually
- Funded aquatic education programs introducing more than 850,000 people to fishing
The American Sportfishing Association has strongly endorsed the legislation. “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 the organization.
Hughes added that “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.”
Addressing a Growing Problem
A recent Government Accountability Office (GAO) report highlighted this issue, noting that many consumers are unaware they may be responsible for these taxes when purchasing from foreign sellers, and those who are aware often struggle to navigate IRS guidelines for calculating and paying them. The report recommended that Congress take action to ensure U.S. online marketplaces, rather than individual 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 fishing and archery equipment, treating them as the importer of record
- Ensure funding for state-led wildlife conservation efforts isn’t lost due to tax loopholes
- Maintain fairness for domestic retailers who already pay these taxes
- Simplify the tax process for consumers and eliminate confusion
Jim Fredericks, Director of the Idaho Department of Fish and Game, thanked the senators “for their leadership in helping to make the Sport Fish Restoration and Wildlife Restoration funds whole. State fisheries programs count on these funds to maintain the good quality fishing opportunities that keep our anglers coming back for more.”
Dan Forster, Vice President & Chief Conservation Officer of the Archery Trade Association, also praised the legislation, noting that “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.”
As online shopping continues to grow in popularity, addressing this loophole becomes increasingly important for both domestic manufacturers and conservation efforts. The bill’s supporters are optimistic about its prospects, with strong backing from industry and conservation groups alike.
The full text of the legislation is available here.
