§4162 Definitions; treatment of certain resales

Summary

Defines "sport fishing equipment" by naming nine groups of gear. These include rods and their parts; reels; fly lines and other fishing lines under 130-pound test; spears, spear guns, and spear tips; terminal tackle (like leaders, artificial lures and baits, flies, hooks, bobbers, sinkers, snaps, drayles, and swivels); fishing supplies and accessories (such as stringers, creels, tackle boxes, fish containers, portable bait boxes, vests, nets, gaffs, hook removers, and line/fly dressing); tip-ups and tilts; rod belts, holders, harnesses, fighting chairs, outriggers, and downriggers; and electric outboard boat motors. If a manufacturer, producer, or importer sells an item that is taxed under section 4161(a), and the special constructive sale-price rules in section 4216(b) do not apply, and that item later is sold to a person who is related to the maker, tax can be imposed on that later sale. If tax is charged for that reason, the related buyer may prove how much tax was paid on the earlier sale. "Related person" means the term in section 465(b)(3)(C). Similar rules cover cases where intermediaries or other devices are used to try to reduce the tax, unless regulations say otherwise.