10.16.09 | Adjusted FET Rate for Arrow Shafts

WASHINGTON — The FET rate for arrow shafts will remain at $.45 per shaft as of January 1, 2010. This rate will be valid through the end of 2010 and will appear on the form 720.

This information was released October 15, 2009 in Revenue Procedure 2009-50:

Tax on Arrow Shafts. For calendar year 2009, the tax imposed under § 4161(b)(2)(A) on the first sale by the manufacturer, producer, or importer of any shaft of a type used in the manufacture of certain arrows is $0.45 per shaft.

The ATA's president/CEO Jay McAninch has informed the IRS that the industry needs notification of these rate changes much earlier if companies are going to make informed decisions about shaft pricing. McAninch has begun working with a tax consultant on the prospect of making this information available earlier.

Background

This adjustment was included in the legislative language that accompanied the change in the FET law that took effect on April 1, 2005. The language reads like this:

(B) ADJUSTMENT FOR INFLATION.
(i) IN GENERAL.-In the case of any calendar year beginning after 2005, the 39-cent amount specified in subparagraph (A) shall be increased by an amount equal to the product of (I) such amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting ‘2004' for ‘1992' in subparagraph (B) thereof.
(ii) ROUNDING. If any increase determined under clause (i) is not a multiple of 1 cent, such increase shall be rounded to the nearest multiple of 1 cent.

If you have questions or comments, please contact Jay McAninch at (703) 266-4134 or by e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .