PrintFirearms Industry, USFWS and State Wildlife Agencies Support Proposed Legislation
July 16, 2008 Washington, DC - The Congressional Sportsmen's Foundation (CSF) hosted a Capitol Hill briefing, sponsored by the National Shooting Sports Foundation (NSSF), where members of Congress, leaders of conservation organizations and industry representatives were informed about the inequity that exists in the excise tax payment schedule for firearms and ammunition manufacturers.
Representatives Ron Kind (D-WI), Paul Ryan (R-WI), Dan Boren (D-OK) and Steve Pearce (R-NM), leadership of the Congressional Sportsmen's Caucus (CSC), have introduced legislation, H.R. 6310, seeking to rectify a longstanding inequity in the collection of the Firearms and Ammunition Excise Tax (FAET). The FAET flows from the IRS through the U.S. Fish & Wildlife Service to the state wildlife agencies and is the major source of conservation funding for the Pittman-Robertson Wildlife Restoration Trust Fund.
HR 6310 will allow the firearms and ammunition industry to pay the FAET on a quarterly basis; the same payment schedule as the archery and fishing industries that support conservation programs through excise taxes. Currently firearms and ammunition manufacturers must pay the FAET bi-weekly. This payment schedule forces many manufacturers to borrow money to ensure on-time payment, and industry members spend thousands of man-hours administering the necessary paperwork to successfully complete the bi-weekly payments - monies that are due long before manufacturers are paid by their customers. Changing the schedules could free as much as $22 million annually for manufacturers to invest and contribute to industry growth, which in turn, would expand the FAET base. Read more about the FAET...
At the briefing, the CSC co-chairs, Reps. Kind and Ryan, as outdoorsmen, stressed the importance of explaining the role that sportsmen and the firearms industry play in wildlife conservation to their Congressional colleagues so that there was a clear understanding of how the FAET schedule affected state wildlife conservation programs.
NSSF President and CEO, Steve Sanetti said, "The firearms industry is not trying to get a tax break or avoid taxes; we just want parity with the other industries that support conservation." Sanetti explained that the bi-weekly schedule places an administrative burden on the industry, costing manufactures millions that could be better spent reinvesting in their businesses.
U.S. Fish and Wildlife Director Dale Hall detailed a brief history of the conservation ethic and the funding mechanisms that began in the 1930s. He pointed out that the industry voluntarily stepped forward to pay for wildlife conservation efforts through the establishment of the Pittman-Robertson Fund.
About the proposed legislation, Director Hall said, "We cannot overestimate the importance of the funds paid by the firearms and ammunitions industry. I believe we need fairness across the board and support these efforts to make it fair."
Read More about the Pittman-Robertson Fund
Gary Taylor, Legislative Director of the Association of Fish and Wildlife Agencies stated that ‘on the ground' state wildlife conservation programs have received $5.6 billion in FAET funding since 1937. Each year, state wildlife agencies use $75 million to manage the 30 million acres of public lands purchased or leased with Pittman-Robertson funding, spend $50 million on research and $25 million to fund Hunter Education programs which have, so far, served 24 million students. According to Taylor, state fish and wildlife directors support the legislation.
"It is critical that we continue to nurture and enhance the relationship between hunters and anglers, industry, and the state and federal fish and wildlife agencies in order to ensure the vitality and sustainability of the our rich conservation heritage through the coming decades," said Taylor. Read Gary Taylor's Remarks
Jay McAninch, President and CEO of the Archery Trade Association spoke about the 2004 change in the excise tax collection schedule for the archery manufacturers. He noted that since 2004, the change resulted in an annual increase in revenue from the archery industry to the Pittman-Robertson Wildlife Restoration Trust Fund of nearly $15 million; an increase of nearly 75 percent.
CSF President Jeff Crane spoke about how the American system of wildlife conservation funding was the envy of the world. He said "The highly successful American system of funding wildlife conservation can benefit from the remedy this legislation would afford. It would be a big win for the firearms industry that would ultimately provide a bigger win for wildlife conservation and the sportsmen's community." Crane added, "The sportsmen's community is working with the leadership of the Congressional Sportsmen's Caucus in the Senate to introduce a similar bill to fix the FAET inequity."
Read more about the American System of Conservation Funding and the North American Wildlife Policy Conference.
