Mon, 21 Mar 2005
All of the archers out there will be happy to hear that the Arrow Tax has
been repealed. Alas, the Bow Tax still applies.
Bows
The 11% tax on bows will apply to bows having a peak draw weight of 30 pounds
or more. This replaces the current law which applies to bows having a peak draw
weight of 10 pounds or more. Broadheads suitable for use with certain arrows
will be taxed as a part and accessory at the 11% bow tax rate. The effective
date for both provisions is for articles sold after November 21, 2004.
Repeal of Arrow Tax
The tax on arrows that was in effect for arrows sold after November 21, 2004,
and before December 23, 2004, has been repealed. The rules used prior to
November 22, 2004, for arrow components still apply for the 4th quarter of
2004. Any tax that was imposed by the manufacturer, producer, or importer on
arrows after November 21, 2004, and before December 23, 2004, may have to be
refunded to the purchaser. See Changes Effective for the Second Quarter of 2005
for details on the tax on arrow shafts effective after March 31, 2005.
How
much are we paying the members of Congress to make these laws? (Hint: It's less than
$155,101)
Update: Unfortunately, those arrows aren't really tax free. Beginning
March 31, there will be a tax on the arrow
shaft.
business » taxes | Permanent Link
