Tuberville legislation would help level playing field for Alabama sporting equipment businesses

WASHINGTON – A bill to target a tax loophole that hurts state-led wildlife conservation efforts has been introduced by U.S. Sen. Tommy Tuberville.

Tuberville and Sen. Mike Crapo said the Sporting Goods Excise Tax Modernization Act  would hold foreign sellers to the same tax regulations as domestic manufacturers.

“Alabama is proud to be home to hundreds of small businesses who make sporting equipment that outdoorsmen and conservationists rely on,” said Tuberville (R-Auburn). “The last thing these business owners need is to be punished for producing goods right here in the U.S.A.

“I’m proud to introduce this legislation with Senator Crapo which closes a loophole allowing foreign sellers to exploit our domestic retailers and rob money from our state conservation programs.”

Conservation and sporting groups, including the Alabama Department of Conservation, Archery Trade Association, Association of Fish and Wildlife Agencies, American Sportfishing Association, and The Conservation Fund have endorsed the legislation.

“We applaud Senator Tuberville’s support of the Sporting Goods Excise Tax Modernization Act,” said Chris Blankenship, commissioner of the Alabama Department of Conservation and Natural Resources. “These funds are critical to supporting outdoor activities in the U.S. and we rely on them heavily in Alabama.

“This legislation will help secure state conservation funding and ensure all Americans have access to quality outdoor recreation throughout the country.”

For decades, the Pittman-Robertson Wildlife Restoration Act and the Dingell-Johnson Sport Fish Restoration Act have provided states and territories with essential funding for wildlife restoration, conservation, hunter education programs, and boating access programs.

These programs, funded through excise taxes on sportfishing and archery equipment, have contributed more than $1.3 billion in FY2025 to support conservation efforts across the country.

However, a loophole in current tax policy allows some online purchases of imported sporting goods to bypass these excise taxes when purchased directly from foreign sellers, leading to a shortfall of tens of millions of dollars from going to conservation funds.

Many consumers are unaware that they may be responsible for these taxes, and even those who are aware often struggle to navigate IRS guidelines on calculating and paying them.

“Federal excise taxes on certain recreational outdoor sporting equipment provide funding for conservation programs,” said Crapo (R-Idaho). “This bill closes loopholes on imported fishing and archery equipment that deprive fish and wildlife conservation programs of additional critical funds.

“This move will help level the playing field for Idaho and American companies and strengthen existing conservation programs.”

A recent Government Accountability Office report recommended that Congress address the issue by ensuring that U.S. online marketplaces, rather than consumers, are responsible for collecting and remitting these excise taxes.

The Sporting Goods Excise Tax Modernization Act would:

• Require U.S. online marketplaces to collect and remit federal excise taxes on imported archery and fishing equipment, treating them as the importer of record.
• Ensure that funding for state-led wildlife conservation efforts is not lost due to tax loopholes.
• Maintain fairness for domestic retailers who already pay these taxes on sporting goods they sell.
• Simplify the tax process for consumers, eliminate confusion, and ensure that conservation programs receive the full funding they deserve.

“We thank Senators Tuberville and Crapo for their leadership in helping to make the Sport Fish Restoration and Wildlife Restoration funds whole,” said Jim Fredericks, chair of the Association of Fish and Wildlife Agencies’ Fisheries and Water Resources Policy Committee and Director of the Idaho Department of Fish and Game. “State fisheries programs count on these funds to maintain the good quality fishing opportunities that keep our anglers coming back for more.”

A complete text of the bill can be found here. U.S. Reps. Blake Moore (R-Utah) and Jimmy Panetta (D-Calif.) introduced companion legislation in the House of Representatives earlier this year.

“The Sporting Goods Excise Tax Modernization Act will ensure the future viability of the Sport Fish Restoration Fund by closing a loophole and securing millions of dollars in lost excise tax revenue to improve recreational fishing,” said Glenn Hughes, president and CEO of American Sportfishing Association. “Since 1950, excise taxes on fishing equipment have provided $12 billion for conservation efforts and improved access for anglers across the country – a unique user-pay, public-benefit system that has become a cornerstone of the American conservation model.

“We applaud Senators Tuberville and Crapo for introducing this legislation and for their commitment to the sportfishing industry, which contributes $230 billion to the U.S. economy each year.”