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.
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.
Did You Know?
The ATA estimates that in 2004, archery represented 7 percent of the more than $7.1 billion spent nationwide for outdoor equipment.