All fishing tackle is subject to federal excise tax (which is not a state sales tax).  This excise tax encompasses almost every aspect of our sport from rods to reels to lures.  Lures in particular are subject to 10%.  Some builders separate the excise tax and tack it onto the price while others build it into the cost (like I do). 

All federal excise taxes associated with the Sport Fish Restoration Act that are collected are redistributed to the 50 states based upon their land area and license sales to anglers and hunters.  These funds are then used by the states for fisheries and wildlife management as well as land acquisition that benefits the non-hunting population as well.          

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