Sporting Goods Excise Tax Modernization Act

This bill makes certain online marketplaces responsible for paying the federal excise tax on some sporting goods they help sell. If a marketplace lists or advertises the product and collects the buyer’s payment, and the item is shipped into the U.S. for that sale, the marketplace is treated as the importer and seller for tax purposes . This applies to items already covered by the existing sporting goods excise tax, such as taxable gear described in the tax code . The rule does not apply if the tax would already be charged to someone else in the transaction, so it avoids double taxing the same sale . The Treasury Department will issue guidance to make these rules work in practice .

Timing: These changes start for sales in calendar quarters that begin more than 60 days after the bill becomes law .

• Who is affected: Online marketplaces that host listings and process payments for sellers, and buyers of taxable sporting goods sold through those marketplaces .
• What changes: For qualifying imported sales, the marketplace—not the overseas seller—is on the hook for the excise tax .
• When it starts: Quarters beginning after 60 days from enactment .