Author: Archery Trade Association
The ATA’s tax specialist, Tim Hanford of ADC Strategies, has provided an unofficial set of computations that estimates the arrow shaft tax rate for 2023. The tax reform act created five years ago changed the indexing factor from CPI to Chained CPI, which prevented Bloomberg from publishing the estimate in their projected tax rates for 2023.
Tim worked directly with Bloomberg to compute the unofficial 2023 arrow shaft excise tax. The arrow excise tax for 2023 is estimated to be 59 cents per shaft. The IRS will release its official figure later this year, usually in November. The ATA provides this exclusive member-benefit so companies can adjust arrow prices for the next calendar year.
The 4 cent increase from the 2022 rate is inflationary. When arrows broke away from the 11% FET rate in 2004 as requested by industry members, the CPI adjustment was added in to keep the arrow tax consistent with other archery product taxes.
An Exciting FET Milestone
Recently, FET contributions from archery equipment sales, which go directly to funding conservation projects and initiatives, reached more than $1.1 billion all-time and totaled $65 million in fiscal year 2021.
Your FET contributions support state wildlife agencies that use the funds to benefit wildlife conservation, acquire land and ensure Americans have outdoor recreational opportunities, which in turn, generates more business for you!
Access Free FET Resources
ATA members can download important FET information and documents, including quarterly FET reports and the ATA’s comprehensive FET guide, from the ATA’s Resource Library. You can also find FET data on the Sportfishing and Firearms industries on the Resource Library if you want to compare trends from other industries. These resources – and many others – are free.
For FET assistance, including electronic filing, please contact Nathan Fitzgerald of FORVIS (formerly BKD CPAs & Advisors), a full-service certified public accounting firm ready to meet your business needs. FORVIS is a MyATA service provider. Fitzgerald can be reached at firstname.lastname@example.org.