Bill Summary
The "Sporting Goods Excise Tax Modernization Act" is a bill that aims to amend the Internal Revenue Code of 1986. It proposes to treat certain marketplace providers, who facilitate the sale of sporting goods, as importers for the purpose of the excise tax on these goods. This means that the marketplace provider will be responsible for paying the excise tax instead of the manufacturer, if the goods are sold on their platform. A "specified marketplace sale" refers to a sale where a marketplace provider offers their services and collects payments on behalf of the seller for a product that is being imported to the United States for sale. This bill defines a marketplace provider as a person who hosts or advertises products for sale and collects payments from purchasers to distribute to the seller. The bill also states that related persons will be treated as one person for the purpose of applying these regulations. It also specifies that the excise tax will not be imposed on the purchaser, only on the marketplace provider. The Secretary will issue regulations to carry out the purposes of this bill, including specifying the taxpayer who will be treated as the marketplace provider. This amendment will only apply to sales after 60 days from the enactment of the bill. Lastly, it clarifies that this amendment should not be interpreted as creating any inference about the proper treatment of importers for other purposes.
Possible Impacts
1. The "Sporting Goods Excise Tax Modernization Act" could potentially increase the cost of sporting goods for consumers, as marketplace providers would be responsible for paying the excise tax, which could be passed on to the buyer.
2. This legislation could also have an impact on small businesses and online marketplace platforms, as they would now be classified as importers and subject to the excise tax. This could lead to additional costs and administrative burdens for these businesses.
3. The regulations and guidance issued by the Secretary could potentially create confusion and uncertainty for marketplace providers, as they may struggle to understand and comply with the new requirements. This could also lead to potential legal issues and disputes.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1649 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 1649
To amend the Internal Revenue Code of 1986 to treat certain marketplace
providers as importers for purposes of the excise tax on sporting
goods.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 7, 2025
Mr. Tuberville (for himself and Mr. Crapo) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to treat certain marketplace
providers as importers for purposes of the excise tax on sporting
goods.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Sporting Goods Excise Tax
Modernization Act''.
SEC. 2. CERTAIN MARKETPLACE PROVIDERS TREATED AS IMPORTERS FOR PURPOSES
OF THE EXCISE TAX ON SPORTING GOODS.
(a) In General.--Section 4162 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(c) Certain Marketplace Providers Treated as Importers.--
``(1) In general.--In the case of any specified marketplace
sale of a taxable sporting good article, the marketplace
provider with respect to such sale shall be treated for
purposes of section 4161 as the importer and seller of such
article.
``(2) Specified marketplace sale.--For purposes of this
subsection, the term `specified marketplace sale' means, with
respect to any article, any sale if--
``(A) a marketplace provider provides the services
described in subparagraphs (A) and (B) of paragraph (3)
with respect to such sale,
``(B) such article is transported to the United
States from outside the United States in connection
with (including in anticipation of) a sale of such
article, and
``(C) the manufacturer of such article is not the
marketplace provider referred to in subparagraph (A).
``(3) Marketplace provider.--For purposes of this
subsection, the term `marketplace provider' means any person in
the trade or business of--
``(A) hosting or facilitating listings, or
advertisements, of products for sale, and
``(B) collecting gross receipts from the purchaser
and transmitting any portion of such receipts to the
seller.
``(4) Treatment of related persons.--For purposes of this
subsection, related persons (within the meaning of subsection
(b)(3)) shall be treated as one person for purposes of applying
paragraphs (2) and (3).
``(5) Taxable sporting good article.--For purposes of this
subsection, the term `taxable sporting good article' means any
article of a type subject to tax under section 4161.
``(6) Exception if tax would otherwise be imposed on person
other than purchaser.--Paragraph (1) shall not apply with
respect to any sale if tax under section 4161 would (without
regard to paragraph (1)) be imposed on a person other than the
purchaser with respect to such sale.
``(7) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this subsection,
including regulations or other guidance specifying, in the case
of the application of paragraph (4), the taxpayer treated as
the marketplace provider for purposes of paragraph (1).''.
(b) Effective Date.--The amendment made by this section shall apply
to sales during calendar quarters beginning after the date that is 60
days after the date of the enactment of this Act.
(c) No Inference.--Section 4162(c) of the Internal Revenue Code of
1986 shall not be applied or interpreted as creating any inference with
respect to whether any person not treated as an importer under such
section is nonetheless properly treated an importer for purposes of
section 4161.
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