It is important that fish and wildlife agencies (from the director to the biologist in the field) understand where their funding originates. Likewise, it is important that the manufacturers of taxable products (and retailers) that are part of this funding story understand where their tax dollars are going. To this end, Mitch will be taking every opportunity to ensure that the excise tax payments made by industry that ultimately make their way into the budgets of state fish and wildlife agencies are “front of mind” to the state agencies and related organizations.
In 2016, industry contributed $800,036,804 in excise taxes into the Wildlife Restoration Fund and $627,740,540 in excise taxes and import duties into the Sportfish and Boating Trust Fund. These funds pay a significant portion of: 1) the salaries of just about everyone in the state agency; 2) the cost of biological research performed on behalf of the agencies; 3) the acquisition of key fish and wildlife habitats; 4) the maintenance of hunter and angler access points; 5) the list can go on forever. The next time you wander into a gun shop, an archery shop, or a bait shop and they are busy – be thankful. If they are not busy, we all should worry.
From an industry perspective, it is just as important for them to understand what this tax is all about. Mitch will be taking advantage of every opportunity to get in front of the taxpaying industry to better explain where their tax dollars are going. With just a few exceptions, the tax is 11% for firearms, ammunition, and archery equipment; 10% for pistols and fishing tackle; and a lesser percentage for tackle boxes and trolling motors. The profit margins for most of these companies is well under 3%. It has been said by CEOs of archery and fishing tackle companies that the state fish and wildlife agencies make more off of their product than the CEO. The tax check they write is only topped in amount by their salary payments and the cost of supplies. It is critical that they fully understand and appreciate where these tax dollars go and how they are being used to grow hunting and fishing.
Stay tuned for periodic updates from Mitch. As a “take home” – take a look at the following pie charts that display where the nearly $1.43 billion in 2016 excise tax dollars came from.
