A) If I buy only eight blanks from a rod builder sold to me as components, should I be charged the Federal Excise Tax on each blank?

B) When I buy eight blanks along with guides, grips etc, from a vendor on the left (which I have done), I don't ever recall paying the excise tax unless it was built into the price and I didn't know it.

Correct me if I'm wrong but shouldn't the rod builder be charging the end user the 10% or $10 and not the supplier of components/blanks charging me?

The tax is included in the price of the components - it was added at the first point of sale. Each buyer pays it along the way with the tax finally falling upon the end user.

So when you buy rod blanks from a builder, the tax has already been paid at that first point of sale. He has no reason nor should he, charge you the excise tax. It's already in the price.

When you use components to build a fishing rod, however, you're now creating a new product and must charge the tax on the total selling price of the rod (6% if sold to the end user and 10% if sold to a reseller. The tax tops out at $10 in either case).

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I dont post much on the forum but I have to say Toms explanation of the of the present Excise Tax is one of the clearest and most concise(sp?) I have ever seen. Mind if I copy it and use it when I am asked the same type Questions?

Sure. There is a complete article on the tax on the library page here.

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[www.irs.gov]

Fishing rods and fishing poles (IRS No. 110). The tax on fishing rods and fishing poles (and component parts) taxed at a rate of 10% will have a maximum tax of $10 per article. The tax is paid by the manufacturer, producer, or importer. Add the tax on each sale during the quarter and enter the total on the line for IRS No. 110.