WASHINGTON – The Humane Society of the United States (HSUS), the nation's largest animal protection organization, is urging Congress to eliminate tax loopholes that let wealthy trophy hunters write off the costs associated with killing big game animals.
A two-year undercover investigation by The HSUS has revealed that several museums have been accepting donations of trophies from animals hunted for their heads and their hides.
"These museums offer wealthy trophy hunters a tax break, bilk the federal Treasury of untold millions of dollars, and encourage more killing of our precious wildlife, including rare species," said Wayne Pacelle, HSUS president and CEO. "Congress must act quickly to eliminate the loophole that results in the bankrolling of big game hunting expeditions."
Appraisers have encouraged customers to take advantage of the loophole by promising that an individual can "hunt for free." While the hunter pays up front costs, the hunt outfitters assist with processing and shipping the mount. The appraiser also assists in the movement of the hunter's quarry to the museum. Most if not all of the up front costs can be recouped when the hunter takes a tax write off equivalent to the inflated appraised value of the trophy. According to the HSUS investigation, both the hunting outfitter and museum curators identify Chicago Appraisers Association as providing inflated appraisals of the trophies.
The HSUS estimates that over 350,000 big game trophies entered the United States between 1998 and 2003. An unknown number of those trophies were donated to museums. One facility implicated is the Wyobraska Wildlife Museum in Gering, Neb.
HSUS investigators estimate that millions of dollars in tax revenue have been lost because of improper deductions that date back years. Understaffed enforcement efforts have resulted in deductions that are vastly inflated.
Wyobraska states that by holding onto the donations for two years before selling the mounts they are abiding by the IRS Code. That interpretation of the two-year rule is not accurate. IRS publications state that the two-year rule is a reporting requirement. Should the museum sell the donated item before two years have expired they must notify the donor forcing the donor to possibly amend his earlier return, thereby changing his deduction.
Auction houses report that trophies typically sell for around 10 to 20 percent of their appraised value. Theoretically, hunters could buy back their trophy at auction at a fraction of the appraised value they used for tax purposes.
Big game hunters are also eligible for awards offered by Safari Club International (SCI), which promotes worldwide competitive trophy hunting. The competitive nature of trophy hunting is revealed in the group's record books, which document the size, location and date of the kill. Chicago Appraisers Association, the company that HSUS investigators found to be providing inflated appraisals to big game trophy hunters, has placed advertisements in SCI publications such as Safari Times.
Under the Endangered Species Act and the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES), permits are required to import trophies from threatened or endangered animals. The U.S. Fish and Wildlife Service is the agency responsible for enforcing these laws and for reviewing the permits. Last month, Interior Secretary Gale Norton appointed Matthew Hogan, a former SCI lobbyist, to interim director of the USFWS.
The federal tax code has long included provisions that let taxpayers deduct the value of items contributed to charitable organizations. But what was initially intended to encourage charitable giving has resulted in numerous abuses by big game trophy hunters that bilk the federal Treasury by inflating the value of donated trophy mounts and increasing the amount of the tax write off.
The Humane Society of the United States is the nation's largest animal protection organization with nearly nine million members and constituents. The HSUS is a mainstream voice for animals, with active programs in companion animals and equine protection, wildlife and habitat protection, animals in research and farm animals and sustainable agriculture. The HSUS protects all animals through education, investigation, litigation, legislation, advocacy, and field work. The non-profit organization is based in Washington and has field representatives across the country. On the web at hsus.org.
