Did some searches and didn't come up with the info I need. Most of the FET info goes towards whole rods that pretty much fall to the cap $10 limit, but wondering about smaller components. Basically, if you make a custom grip, what is the FET rate to use? If it sells for $10. I believe the component will fall under FET due to it being something that exists new after component assembly.

Take'er Eazy
Andy Doc

Yes, if it is made specifically for use on a fishing rod, FET is due.

Read the excise tax article on the library page. The Constructive Sales Price (60% of the selling price) is in effect if you are selling direct to the end user. Otherwise, 10% if selling to a reseller.

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What Tom said ... PLUS ... my opinion would be that 10% would be due no matter what. IMO, it would be impossible to have an "end user" to a set of grips. Here's why ... the blank that the grip is being attached to has NOT been subject to FET as a finished rod. Meaning that all raw components would be subject - including the grips.

To be sure, give the IRS a call. The fellow that was taking calls on Sportfishing Tax questions is Jack Brown @ 231-932-2057. Hope this helps.

All components are subject to the FET, unless you are selling to a manufacturer that has a 637 exemption certificate on file. Most major rod manufacturers have these as they'll be paying the tax in full on each completed rod they manufacture.

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Thanks guys...that was what I was thinking. Wonder how many selling on @#$%& actually account for FET

Take'er Eazy
Andy Doc

The other thing I just want to make sure I'm doing right...does the FET only apply to components and not the cost labor involved?

Take'er Eazy
Andy Doc

FET applies to the FINISHED price of whatever item you are selling. If it is a set of grips, as original mentioned, it would be based on the selling price of the set.