I was talking to a distributor about buying whole sale and he said that the excise tax was added to the price, do i still have to pay the excise tax (to the IRS)

YES. Manufacturers have paid excise tax, but ONLY at the raw component level. The tax is still due on the finished product ... or more specifically, on the increased value of the assembled parts. Read this article for more information - [www.rodbuilding.org].

BTW, every rod built is subject to this tax ... even one. No builder is exempt from paying it.

Buck,

Do you have a business license and sell rods? If you do, you have to fill out an IRS form 720 and file quarterly. The 720 is the Sportfishing Excise Tax that big brother wants to GOUGE us for.

My undrstanding is that the Sportfishing Excise tax is 10.00 per rod sold. It may have changed this year as I did not renew my business license and do not file anymore. But as far as I know, if you don't sell any rods, you don't pay any Sportfishing Excise tax.

I'm sure someone will chime in with updated info.

Paul

Yes, you cannot deduct previously paid excise taxes from those pieces used on building a custom rod. When you sell a rod to a customer, you are selling a completely new item - a fishing rod. Not only that, but you would have no way to know how much to deduct - you don't know what the initial selling price between the manufacturer and dealer was so you can't know how much tax was paid.

Read the article in the library on the tax and you'll have a much better understanding of how this all works.

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Thanks guys that is what i thought was just checking