Thread: Excise tax

Yup. If trade or barter with someone, e.g., lures for a fishing reel. That too.

It's very simple If you "produce, manufacture or import" a lure you owe FET. The tax is only paid once. Bait shops don't pay FET unless they make or import the lure.

Well, Excise tax is paid once, put you still gotta pay sales and use tax after that, then personal income tax after that. You spent one dollar, but by the end of the year that dollar was taxes about three times.

Thanks for the information. I'm not planning on getting rich and anything I make is just play money but I want to do it legally. Too old to go to the slammer.
It don't look that hard...I already have a Fed ID and know how you do sales tax. Just need to get a Venders liecene and file a Form 720 ever 3 months on anything I sale. Don't make enought to pay Fed taxes anyways. Customers pay the sales tax and will just cost me $.10 on the $1.00 extra for the excise tax. So if I would have made $10 profit...I will make $9. And at least the $1 is helping our waterways.

They have a worksheet and use to have training at the ASA Show now I-Cast. When you use their sheet it works out to 9% not 10 I I remember right, but 10% is the advertised rate. It is on the first domestic sale. I used a expediter for importing my rods from China and I paid the excise tax on their sale to me. The Expediter also stands in the shoes of the manufacturer in liability concerns although you should still carry product liability insurance.

I'm not going to be exporting or anything..just some ebay or fasebook sales and to locals. Just going to fill out the 720 and pay the 10% to be safe. May not sell anything but want be legal either way. I'm 70 and just going to fool around and maybe make a little cash. not too worried and getting all crazy or anything.

Sales divided by 1.1= FET

you guys that may be interested in getting into selling jigs and plastics believe me it's not worth it right now . There are too many people selling illegally is that you're not paying excise or anything else and so is guys that are going by the law or suffering not because of that only because of the economy is terrible right now.