The following numbers cover the first half of the 2020 federal fiscal year (October 1, 2019 thru March 31, 2020) and compare those numbers to the same period in fiscal year 2019. These numbers are provided by the U.S. Fish and Wildlife Service, which gets them directly from the two collection agencies (the Internal Revenue Service and the Tax and Trade Bureau).

As you review these numbers, one point to keep in mind is the COVID-19 related impacts we are experiencing. These number cover the collections thru the first two quarters of the fiscal year (thru March) and we all know that the impacts of this pandemic will last well into the third and possibly the fourth quarters of this fiscal year.

Excise tax contributions for the Sport Fish Restoration Account appeared to be on a fairly solid increasing trajectory for the first five months and then we saw a significant drop in the March collections. The March numbers ate up the gains of the first five months – and then some. Collections for the Sport Fish Restoration Account are down by 3 percent over the 2019 numbers (roughly $7.5 million). While this doesn’t look too bad on the surface, a deeper dive into the details gives us a bigger reason for concern. As you can see from the chart below, the reductions in the current numbers came from lower collections on fishing equipment and custom duties. The chart also shows that the gasoline related tax collections held steady through March. As we all know, the gas tax is by far the largest contributor to the Sport Fish Restoration Account and the reductions in travel related to the COVID-19 stay at home orders are likely to adversely impact these numbers in the collections for the coming months. The numbers we see over the next month or two may be significantly lower and cause the Sport Fish Restoration numbers to drop.

If there is a silver lining to the COVID-19 related issues, it is with the Wildlife Restoration Account. As you recall, we have seen significant drops in contributions into the Wildlife Restoration Account over the last two fiscal years (2018 and 2019). The first half of the 2020 federal fiscal year (October thru March) has shown a rebound of collections over the 2019 numbers – up by 5 percent (about $16 million) and near the numbers for 2018. Most of this increase is in Pistols & Revolvers and Ammunition. The noticeable negative is in archery equipment (bows, broadheads, and taxable attachments to the bow) that experienced a 9 percent decrease in collections (about $2 million). While this does not look like much, a 9 percent hit to the archery industry is huge. Interestingly, this hit to the archery industry does not appear to be COVID-19 related since the reductions in collections came in the first quarter of the fiscal year (October thru December). It is likely that this reduction had more to do with the excise tax leakages we have been seeing related to the large internet marketplace providers avoiding paying the taxes – more to come on that. My expectation is that we will continue to see strong collections for the Wildlife Restoration Account – if not related to COVID-19, then because of the upcoming elections.

Following is a closer look at the numbers.

The Sport Fish Restoration Account

The Trends:

Here are the comparisons of the collections for the first two quarters of FY 2019 and FY 2020.

The Funding Sources:

It is important to understand where these numbers come from, how they relate to past numbers and how the individual funding sources relate to the overall funding available. The following pie-chart provides a strong reference on the importance of funding sources that are not directly related to fishing equipment (motorboat and small engine fuel taxes; customs duties; interest) to the support of state agencies’ aquatic conservation efforts (76.1 percent of the total funding).