Bill Details

HR.1494 - 119th Congress

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This bill would change how a federal excise tax on certain sporting goods is collected when the goods are sold through online marketplaces. In some overseas-to-U.S. sales, the marketplace operator—not just the foreign seller—would be treated as the importer and seller for tax purposes. The goal is to make tax collection clearer and easier when products are listed and paid for through a marketplace, especially when the seller is outside the United States.

  • It applies to sales of sporting goods that are already subject to the federal excise tax on sporting goods.
  • A marketplace provider is generally a business that lists or advertises products for sale and also collects the buyer’s payment and sends part of it to the seller.
  • The marketplace provider would be treated as the importer and seller if the item is shipped into the United States from outside the country in connection with the sale, and the manufacturer is not the marketplace provider.
  • The change would start for calendar quarters beginning after 60 days from the date the bill becomes law, and the Treasury Department would be allowed to issue rules to carry it out.

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Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1494 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 1494

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 HOUSE OF REPRESENTATIVES

                           February 21, 2025

 Mr. Panetta (for himself, Mr. Moore of Utah, Mr. Carter of Louisiana, 
 Mr. Thompson of California, Mr. Pfluger, Mr. Murphy, Mr. Wittman, Mr. 
Carey, Mr. Ezell, Mrs. Dingell, Mr. Gooden, Mr. Williams of Texas, Mr. 
  Buchanan, and Mr. Veasey) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 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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