Rev. Rul. 85-149

1985-2 C.B. 260, 1985-39 I.R.B. 5.

Internal Revenue Service

Revenue Ruling

MANUFACTURERS; SPORTING GOODS; FISHING SPEAR GUNS

Published: September 30, 1985

Section 4161.-Imposition of Tax, 26 CFR 48.4161(a)-2: Meaning of terms

(Also Section 4162.)  

Manufacturers; sporting goods; fishing spear guns. Effective October 1, 1984, sales of spear guns designed for underwater deep sea fishing are subject to tax on sport fishing equipment imposed by section 4161 of the Code. Such sales continue to be exempt from the tax on firearms imposed by section 4181. Rev. Rul. 58-82 superseded.  

The Internal Revenue Service has reconsidered Rev. Rul. 58-82, 1985-1 C.B. 421, because of amendments made to the Internal Revenue Code by the Tax Reform Act of 1984, Pub. L. No. 98-369, 1984-3 (Vol. 1) C.B. 1, 525 (the Act. Rev. Rul. 58-82 held that a spear gun designed for underwater deep sea fishing and powered by rubber bands or rubber tubes was not subject to (1) the manufacturers excise tax on certain fishing equipment imposed by section 4161 of the Code, or (2) the manufacturers excise tax on firearms imposed by section 4181 of the Code.  

Section 4161(a) of the Code, as amended by section 1015(a) of the Act, effective October 1, 1984, imposed a tax of 10 percent of the selling price on the sale of any sport fishing equipment by the manufacturer, producer, or importer.  

Section 4162(a) of the Code, as added by section 1015(b) of the Act, effective October 1, 1984, defines the term 'sport fishing equipment' and, in so doing, expands the types of fishing equipment subject to the tax imposed by section 4161(a). The term 'sport fishing equipment' is defined in section 4162(a)(4) to include fishing spears, spear guns, and spear tips.  

Accordingly, effective October 1, 1984, sales by the manufacturer, producer, or importer of the type of spear gun described above are subject to the tax imposed by section 4161.

EFFECT ON OTHER DOCUMENTS  

Rev. Rul. 58-82 is superseded, effective October 1, 1984.

Rev. Rul. 85-149, 1985-2 C.B. 260, 1985-39 I.R.B. 5.