Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 77-35

1977-1 C.B. 337

Section 4161 -- Tax on Sporting Goods

IRS Headnote

Fishing rods. A "practice rod" manufactured and sold for use indoors to teach fly casting at fishing clinics, the handle of which does not have a reel seat to hold a fishing reel, is not a fishing rod subject to tax.

Full Text

Rev. Rul. 77-35

Advice has been requested whether the tax on fishing rods imposed by section 4161(a) of the Internal Revenue Code of 1954 is applicable to sales of the article described below.

A company manufacturers and sells a "practice rod" for use indoors without hooks or lures to teach fly casting at fishing clinics. The rod is made of fiberglass, 34 inches long, and has line guides and a 6 inch wooden handle. The handle does not have a reel seat to hold a fishing reel.

Section 4161(a) of the Code imposes a tax upon the sale by the manufacturer, producer, or importer of fishing rods (including parts or accessories of such articles sold on or in connection therewith, or with the sale thereof).

Section 48.4161(a)-2(a) of the Manufacturers and Retailers Excise Tax Regulations provides that the term "fishing rods" includes all articles, however designated, that are designed or constructed for use in conjunction with a fishing reel for casting a line and hook in the sport of fishing. Further, the term does not include any article that is neither designed for use in casting, nor suitable for such use. That section also provides that a so-called fishing rod "blank" is not considered to be a fishing rod unless the blank contains an affixed handle and reel seat, or is sold in the form of a kit that contains a rod blank, a handle, and a reel seat.

In the instant case the practice rod is not designed or constructed for use in conjunction with a fishing reel for casting a line and hook in the sport of fishing. Therefore, it is not a fishing rod within the meaning of section 48.4161(a)-2(a) of the regulations, and sales by the manufacturer are not subject to the tax imposed by section 4161(a) of the Code.