What Is An Excise Tax. Excise taxes are also charged on items such as tanning beds, ammunition, gambling, and truck highway use. Excise taxes fall into one of two categories:

Excise tax on the other hand is a flat tax applied before the purchase price for specific items, some of them by states and some by the federal government.

Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and make up a relatively small and volatile portion of state and local tax collections. An excise, or excise tax, is any duty on manufactured goods that is levied at the moment of manufacture rather than at sale. According to the tax policy center, federal excise tax revenue is primarily collected from sales of gasoline, airline tickets, cigarettes and alcohol. In the u.s., goods like alcohol and services like indoor tanning are assessed an excise tax, which applies to each unit or occurrence regardless of its cost. Excise tax is an indirect tax included in the price of certain goods which is paid at the time of purchase of those goods. And they're what you actually pay as a penalty for early withdrawals from individual retirement accounts before you reach 59½. Excise tax is the duty on manufactured goods that are levied at the moment of manufacture. Governments have been charging excise taxes since the 1600s, and the system has become much more elaborate and comprehensive than it was when the dutch first developed it. An excise tax is a legislated tax on specific goods or services at purchase such as fuel, tobacco, and alcohol. An excise tax is a tax charged for items that are frequently seen either as socially harmful or as a luxury good or service. Excise taxes are internal taxes that are levied on the sale of specific goods and services, such as alcohol, fuel and tobacco.