I
nternet gathering place for custom rod builders
  • Custom Rod Builders - This message board is provided for your use by the sponsors listed on the left side of the page. Feel free to post any question, answers or topics related in any way to custom building. When purchasing products please remember those who sponsor this board.

  • Manufacturers and Vendors - Only board sponsors are permitted and encouraged to promote and advertise products on the board. You may become a sponsor for a nominal fee. It is the sponsor fees that pay for this message board.

  • Rules - Rod building is a decent and rewarding craft. Those who participate in it are assumed to be civilized individuals who are kind and considerate in their dealings with others. Please respond to others in the same fashion in which you would like to be responded to. Registration IS NOW required in order to post. You must include your actual First and Last name and a correct email address when registering or posting. Posts which are inflammatory, insulting, or that fail to include a proper name and email address will be removed and the persons responsible will be barred from further participation.

    Registration is now required in order to post. You must include your actual First and Last name and a correct email address when registering or posting.
SPONSORS

2019 EXPO
EXPO ON FACEBOOK
CCS Database
Int. Custom Rod Symbol
Common Cents Info
All American Guides
American Tackle
Angler’s Roost
Anglers Rsrc - Fuji
Anglers Workshop
BatsonRainshadowALPS
BRC Rods
Bingham Enterprises
CRB
Cork4Us
HNL Rod Blanks–CTS
CTS New Zealand
Custom Fly Grips LLC
Decal Connection
Flex Coat Co.
Get Bit Outdoors
Hitena USA
HYDRA
Janns Netcraft
Mickels Custom Rods
Mudhole Custom Tackle
MHX Rod Blanks
North Fork Composites
Pacific Bay
ProProducts
Reelseatblanks.com
Renzetti Inc.
Rod Components USA
Rougarou Rods
Rodgeeks
RodMaker Magazine
RodMaker Magazine Blog
Schneiders Rod Shop
SeaGuide Corp.
Tackleworks
The Rod Room
Trondak U-40
Utmost Enterprises
VisualWRAP/VisualWEAVE
ZipCast

Excise tax on blanks
Posted by: Mark D Schulte (---.mobile.att.net)
Date: April 13, 2019 12:28AM

I've been buying blanks for a while now and I dont believe I have been charged excise tax on blanks. I am trying to order a few from NFC and they are hitting me the tax. Just curious if this is new since i haven't bought a blank in the last 2 months.

Options: ReplyQuote
Re: Excise tax on blanks
Posted by: herb canter (---.atmc.net)
Date: April 13, 2019 01:17AM

The below link may help, it's not a new thing apparently .


[www.rodbuilding.org]

Options: ReplyQuote
Re: Excise tax on blanks
Posted by: Spencer Phipps (---.hsd1.or.comcast.net)
Date: April 13, 2019 04:15AM

Pretty much, if your buying retail, even on a sale you are paying the excise tax up front. If your buying wholesale you are not, and you must get the tax from the customer at the sale, and send it to the government.

Options: ReplyQuote
Re: Excise tax on blanks
Posted by: Ernest Horvath (---.lightspeed.rlghnc.sbcglobal.net)
Date: April 13, 2019 07:31AM

The best way to get the answer you want is to check with your distributors. Even if you have a wholesale account, many of the distributors include the
excise tax in the wholesale price. I know Mud Hole, and Get bit, include the tax in all purchases. And it is not just blanks. It is all rod building components.
I know Batson shows the excise tax on the invoice. You are better off letting the distributors and manufacturers pay the tax. That is one less headache for
you to deal with.
Once you build the rod, and make a profit, you are then responsible to pay the excise tax quarterly. If you build as a hobby, and no profit is made,
then no excise or state sales tax must be paid.
I personally feel that the distributors and manufacturers should show the excise tax on your invoice. You will be surprised how many Billions this tax generates
each year for the states wildlife resources.

Options: ReplyQuote
Re: Excise tax on blanks
Posted by: Tom Kirkman (Moderator)
Date: April 13, 2019 08:31AM

Spencer Phipps Wrote:
-------------------------------------------------------
> Pretty much, if your buying retail, even on a sale
> you are paying the excise tax up front. If your
> buying wholesale you are not, and you must get the
> tax from the customer at the sale, and send it to
> the government.


Even buying wholesale you are paying the tax. You pay the tax regardless, unless you have an IRS #637 Exemption Certificate.

Some companies bury the tax into the price, others show it plainly on their sales invoices.

If you resell a component or components, there is no additional tax liability. If you use those components to build and sell a rod, then the tax is due on the entire rod - you may not deduct taxes previously paid on components. Please read the article - it goes into great detail on these issues.

.............

Options: ReplyQuote
Re: Excise tax on blanks
Posted by: Mark D Schulte (---.hsd1.in.comcast.net)
Date: April 13, 2019 08:39AM

Thanks all, I have no issues with it I have just never seen it on my receipt until yesterday and thought it odd. Probably always have paid it but like some said it was buried in the prices. I do have an issue of being charged 10.00 per blank when 1 blank is 67.00 and 77.00. I feel I'm being overcharged and that is questionable business practices. I'm overcharged a little over 5.00 and I'm only 1 person. How many others are paying it.



Edited 2 time(s). Last edit at 04/13/2019 08:51AM by Mark D Schulte.

Options: ReplyQuote
Re: Excise tax on blanks
Posted by: Tom Kirkman (Moderator)
Date: April 13, 2019 10:43AM

Yes, you were overcharged if that is the case. The tax is figured at the first point of sale, which would be between the manufacturer and the distributor and which would be less than you paid for the blank. For instance, let's say the manufacturer charged the distributor $40 for the blank. The tax would be $4. This is why many don't show the tax as a separate listing on the invoice - doing so would allow you to figure the amount of mark-up from the distributor to you.

With NFC you are buying direct from a manufacturer so the exchange between them and you is the first point of sale. For those two blanks you owed them $14.40 total in excise tax. Manufacturers do not get to set what they charge in excise tax - that figure is set by the Internal Revenue Service.

Regardless, if you were charged $10 in excise tax on a blank that you paid less than $100 for, you were overcharged.

...........

Options: ReplyQuote
Re: Excise tax on blanks
Posted by: Mark D Schulte (---.mobile.att.net)
Date: April 13, 2019 06:45PM

Funny you must know who I purchased from. Maybe they are charging me the tax on the blank before the sale price which would justify that. Thanks as always everyone

Options: ReplyQuote
Re: Excise tax on blanks
Posted by: Tom Kirkman (Moderator)
Date: April 13, 2019 06:48PM

You stated who you bought them from in your first post. Because it is the first point of sale, the tax is charged on the price that you paid, not the MSRP or whatever.

...............

Options: ReplyQuote


Sorry, only registered users may post in this forum.
Webmaster