“To amend the Internal Revenue Code of 1986 to treat certain marketplace providers as importers for purposes of the excise tax on sporting goods.”
No CRS summary available for this bill.
This section establishes the short title of the Act as the “Sporting Goods Excise Tax Modernization Act.”
This section treats certain marketplace providers as the importer and seller of taxable sporting goods for purposes of the excise tax under section 4161 of the Internal Revenue Code of 1986 when the sale is a specified marketplace sale, meaning the provider hosts or facilitates the listing or advertisement of the product and collects the purchaser’s payment and transmits part of it to the seller, the article is transported to the United States from outside the United States in connection with the sale, and the manufacturer is not the marketplace provider. As background, section 4161 imposes excise taxes on certain sporting goods articles. The provision also (1) treats related persons as one person for applying these rules, (2) excludes sales where tax would otherwise be imposed on a person other than the purchaser, and (3) directs the Secretary of the Treasury to issue regulations or other guidance, including rules identifying the taxpayer treated as the marketplace provider when related persons are involved. The amendment applies to sales during calendar quarters beginning more than 60 days after enactment, and it states that the new subsection does not create any inference about importer status for persons not treated as importers under this provision.