Simple English definitions for legal terms
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Excise Tax: A special tax on certain things like tobacco, fuel, and alcohol. It can be paid by the manufacturer, seller, or buyer depending on the tax. Some examples are taxes on gasoline for roads, taxes on cigarettes, and taxes on alcohol.
Excise Tax is a type of tax that is imposed on specific items that belong to a particular class of goods. These classes of goods are often luxury or specialty items, such as tobacco, fuel, and alcohol. The tax can be imposed on the manufacturer, retailer, or consumer, depending on the specific tax. Some excise taxes can be levied directly from the customer, such as property taxes and excise tax penalties on certain retirement account activity.
These examples illustrate how excise taxes are applied to specific items that are considered luxury or specialty goods. The taxes are used to generate revenue for the government and to discourage the consumption of these items. By increasing the price of these goods, the hope is that people will be less likely to buy them, which can have health and social benefits.