I received several emails regarding my September edition editorial (Editor’s Log: Buy Local) related to the collection of federal excise taxes on sport fishing and archery equipment, monies which in turn are dedicated to fish and wildlife conservation (what we often refer to as Wallop-Breaux, Dingell-Johnson or Sport Fish Restoration).
In terms of sportfishing equipment (rods and rod components, reels, lines, lures, hooks, flies, et al) we’re talking about a 10% tax on the total sales price for the most part, although according to the U.S. Fish & Wildlife Service (USFWS) which administers the funding, tackle and fly boxes are taxed at 3%, with a 3% tax imposed on electric outboard boat motors, in addition to a tax on motorboat fuel and small engine fuel.
Several anglers wondered how those monies get returned to states and how it all gets apportioned out. So let’s take a quick look at the Final Apportionment of Dingell-Johnson Sport Fish Restoration Funds for fiscal year 2024, and particularly the monies made available locally on a state-by-state basis.
Pennsylvania: $8,748,693
New York: $7,663,675
New Jersey: $3,580,560
Delaware: $3,580,560
Maryland: $3,580,560
Connecticut: $3,580,560
Rhode Island: $3,580,560
Massachusetts: $3,580,560
The USFWS says the amount of money available to each state is based on a formula using the physical size of the state and the number of licensed hunters/anglers residing there. That said, when you look at how much Pennsylvania and New York bring in federally when compared to the other six states in this regional snapshot, size clearly does matter. Comparatively speaking, Alaska and Texas are the two largest states in the U.S., with each receiving more than $17.9 million in Sport Fish Restoration Funding for 2024.
A lot of folks believe that if New Jersey had a $20 saltwater fishing license, it would in turn generate more federal Sport Fish Restoration Funding; however, I would argue that the table above doesn’t substantiate that argument given the fact that Delaware, Maryland, Connecticut, Rhode Island and Massachusetts all have saltwater fishing fees yet receive the same level of funding as New Jersey.
USFWS says state agencies can use funds for a variety of purposes, “as long as they accomplish program goals and are eligible under the Acts,” which are essentially projects dedicated to species and habitat conservation, as well as outdoor recreation and education. Sport Fish Restoration Fund grants typically fund up to 75% of a project’s cost, meaning that states must provide a matching share of up to 25%. In other words, New Jersey can’t just apply that $3.58 million apportionment anywhere they wish; it has to be for conservation and it must be budgeted with a matching 25% fiscal commitment from the state.
According to USFWS, those matching state funds typically come via hunting and fishing license revenues, although states can get a little creative. Once upon a time the State of New Jersey used prison labor as the ‘upfront’ investment towards getting matching federal funds for reef building. Prison inmates at the time were actually building reef balls, and since those items were considered “public sector assets” their work qualified for that 25% matching amount. Somehow, somewhere, along the way, I guess someone decided that using the incarcerated for building reef materials was bad, so that funding source dried up.
I’ve been told that donated materials in the form of old barges and tugs could also be used as a match for applying Sport Fish Restoration Funding to reef development, but to the best of my knowledge the state of New Jersey has never taken advantage of this. But I would add that no private sector donations were ever used in this capacity – nor could they be – to secure matching funds. So that’s a no to the reader who suggested a bake sale.
