(GunReports.com) — An analysis conducted by Southwick Associates and Andrew Loftus Consulting for the Association of Fish and Wildlife Agencies found that federal excise taxes collected on the sale of hunting and shooting equipment represented an approximate 1,100 percent annual return on investment (ROI) to manufacturers between 1970 to 2006 and taxes collected on sport fishing equipment generated a striking annual ROI of 2,157 percent between 1955 and 2006.
The ROIs in the new report “The Benefits to Business from Hunting and Fishing Excise Taxes” were determined by comparing the amount of excise taxes collected annually to the amount of purchases made annually by sportsmen during the respective timeframes.
By law, the excise taxes only can be used to maintain fish and wildlife populations, provide public access and support programs that directly benefit hunters, shooting sports enthusiasts and anglers.
On average, the hunting- and shooting sports-related industry paid $251 million in excise taxes, but made $3.1 billion in revenue through sportsmen purchases each year from 1970 to 2006. From 1955 to 2006, the sport fishing industry on average contributed $110 million in annual tax payments/import duties, but generated $2.3 billion in annual taxable equipment sales.
“How many tax models in our country today can show an $11 to $21 return to the company on every dollar spent,” said Congressional Sportsmen’s Caucus Co-Chair U.S. Congressman Jeff Miller, R-Fla. “This is one of the most impressive examples of how an American industry can profit and bolster the economy while restoring and improving our nation’s cherished natural resources.”
To read the full report, click here.
