Re: government regulations on making lures
[ Ol' Paw's Fishing Tackle Bulletin Board ] [ Ol' Paw's Fishing Page ]
Posted by Mark Fish (22.214.171.124) on February 25, 2003 at 10:19:54:
In Reply to: government regulations on making lures posted by Harold Bigham on January 07, 2003 at 19:14:08:
This is general information, but I am not an "expert". If you sell fishing lures, you are required to pay federal excise tax, which you file on a quarterly basis. You have to have an employee identification number, whether you have employees or not, and you also must register if you wish to make purchases tax-free. If you buy tax-free, then the amount of the tax is based on the sales price of the lures (10%, which should be added in when you determine your selling price). The IRS people I have dealt with (actually Department of the Treasury) are very friendly and helpful and you should be able to find a number to reach them in your area on the internet. Or you might be able to find information on Form 720, the quarterly return, thru the IRS website. Don't forget you will also need to be set up as a business in your state, and will have to collect state sales tax as well. Contact the IRS or your state department of revenue for much better info than I could provide. Don't forget, the excise tax is money which goes back into hunting and fishing, so it hopefully helps benefit others. May God bless you in your efforts.
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