Publication 510 - Excise Taxes - 2004 (Page 21 of 48) in pdf

ments. The claim must set forth in detail the

ond article manufactured or produced by

finding fish. This includes any parts or accesso-

facts upon which the claim is based.

the manufacturer.

ries sold on or in connection with the sale of

those articles. The tax on any sonar device,

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An identification of the second article.

Uses, sales, and exports. A credit or refund

however, cannot exceed $30. A sonar device

(without interest) of the manufacturers taxes

suitable for finding fish does not include any

For claims by the exporter or shipper, the

may be allowable if a tax-paid article is, by any

device that is a graph recorder, a digital type, a

claim must contain the proof of export and a

person:

meter readout, a combination graph recorder, or

statement signed by the person that paid the tax

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a combination meter readout.

Exported,

waiving the right to claim a credit or refund. The

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statement must include the amount of tax paid,

Used or sold for use as supplies for ves-

Certain equipment resale. The tax on the

the date of payment, and the office to which it

sels (except for coal and vaccines),

sale of sport fishing equipment is imposed a

was paid.

•

second time under the following circumstances.

Sold to a state or local government for its

If the manufacturer sells a taxable article to any

Claim for price readjustment. To claim a

exclusive use (except for coal, gas guz-

person, the manufacturer is liable for the tax. If

credit or refund for a price readjustment, the

zlers, and vaccines),

the purchaser or any other person then sells it to

person who paid the tax must include with the

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Sold to a nonprofit educational organiza-

a person who is related (discussed next) to the

claim, a statement that contains the following.

tion for its exclusive use (except for coal,

manufacturer, that related person is liable for a

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A description of the circumstances that

gas guzzlers, and vaccines), or

second tax on any subsequent sale of the arti-

gave rise to the price readjustment.

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cle. The second tax, however, is not imposed if

Used for further manufacture of another

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the constructive sale price rules under section

An identification of the article whose price

article subject to the manufacturers taxes

4216(b) of the Internal Revenue Code apply to

was readjusted.

(except for coal).

the sale by the manufacturer.

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The price at which the article was sold.

If the second tax is imposed, a credit for tax

•

Export. If a tax-paid article is exported, the

The amount of tax paid on the article and

previously paid by the manufacturer is available

exporter or shipper may claim a credit or refund

the date on which it was paid.

provided the related person can document the

if the manufacturer waives its right to claim the

tax paid. The documentation requirement is

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The name and address of the purchaser.

credit or refund. In the case of a tax-paid article

generally satisfied only through submission of

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used to make another taxable article, the subse-

The amount repaid to the purchaser or

copies of actual records of the person that previ-

quent manufacturer may claim the credit or re-

credited to the purchaser’s account.

ously paid the tax.

fund.

Related person. For the tax on sport fishing

Sport Fishing Equipment

equipment, a person is a related person of the

Price readjustments. In addition, a credit or

manufacturer if that person and the manufac-

refund (without interest) may be allowable for a

turer have a relationship described in section

A tax of 10% of the sale price is imposed on

tax-paid article for which the price is readjusted

465(b)(3)(C) of the Internal Revenue Code.

many articles of sport fishing equipment sold by

by reason of return or repossession of the article

the manufacturer. This includes any parts or

or a bona fide discount, rebate, or allowance for

Bows

accessories sold on or in connection with the

taxes based on price.

sale of those articles.

Conditions to allowance. To claim a credit or

A tax of 11% of the sale price is imposed on the

Pay this tax with Form 720. No tax deposits

refund in the case of export, supplies for ves-

sale by the manufacturer of any bow having a

are required.

sels, or sales to a state or local government or

draw weight of 10 pounds or more. The tax also

Sport fishing equipment includes all the fol-

nonprofit educational organization, the person

is imposed on the sale of any part or accessory

lowing items.

who paid the tax must certify on the claim that

suitable for inclusion in or attachment to a tax-

one of the following applies and that the claimant

1) Fishing rods and poles (and component

able bow and any quiver suitable for use with

has the required supporting information.

parts), fishing reels, fly fishing lines, and

arrows, described next. For a list of taxable and

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other fishing lines not over 130 pounds

nontaxable articles, see Revenue Ruling 98-5.

The claimant sold the article at a tax-ex-

test, fishing spears, spear guns, and spear

You can find Revenue Ruling 98-5 on page 20 of

cluded price.

tips.

Internal Revenue Bulletin 1998-2 at

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The person has repaid, or agreed to re-

2) Items of terminal tackle, including leaders,

pay, the tax to the ultimate vendor of the

Pay this tax with Form 720. No tax deposit is

artificial lures, artificial baits, artificial flies,

article.

required.

fishing hooks, bobbers, sinkers, snaps,

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The person has obtained the written con-

drayles, and swivels (but not including nat-

Arrow Components

sent of the ultimate vendor to make the

ural bait or any item of terminal tackle de-

claim.

signed for use and ordinarily used on

A tax of 12.4% of the sale price is imposed on

fishing lines not described in (1)).

The ultimate vendor generally is the seller mak-

the sale by the manufacturer of any shaft, point,

ing the sale that gives rise to the overpayment of

3) The following items of fishing supplies and

nock, or vane of a type used in the manufacture

tax.

accessories: fish stringers, creels, tackle

of any arrow that after its assembly meets either

boxes, bags, baskets, and other contain-

of the following conditions.

Claim for further manufacture. To claim a

ers designed to hold fish, portable bait

credit or refund for further manufacture, the

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It measures 18 inches or more in overall

containers, fishing vests, landing nets, gaff

claimant must include a statement that contains

length.

hooks, fishing hook disgorgers, and dress-

the following.

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ing for fishing lines and artificial flies.

It measures less than 18 inches in overall

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The name and address of the manufac-

length but is suitable for use with a taxable

4) Fishing tip-ups and tilts.

turer and the date of payment.

bow, discussed earlier.

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5) Fishing rod belts, fishing rodholders, fish-

An identification of the article for which the

ing harnesses, fish fighting chairs, fishing

Pay this tax with Form 720. No tax deposit is

credit or refund is claimed.

outriggers, and fishing downriggers.

required.

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The amount of tax paid on the article and

See Revenue Ruling 88 – 52 in Cumulative Bul-

the date on which it was paid.

Coal

letin 1988 – 1 for a more complete description of

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Information indicating that the article was

the items of taxable equipment.

used as material in the manufacture or

A tax is imposed on the first sale of coal mined in

production of, or as a component part of, a

Electric outboard boat motors and sonar

the United States. The producer of the coal is

liable for the tax. The producer is the person

second article manufactured or produced

devices. A tax of 3% of the sale price is im-

by the manufacturer, or was sold on or in

posed on the sale by the manufacturer of electric

who has vested ownership of the coal under

connection with, or with the sale of a sec-

outboard motors and sonar devices suitable for

state law immediately after the coal is severed

Page 21

Publication 510 - Excise Taxes - 2004 Page 21

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