excise taxes


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Related to excise taxes: Excise duty

excise taxes,

governmental levies on specific goods produced and consumed inside a country. They differ from tariffstariff,
tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic industries
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, which usually apply only to foreign-made goods, and from sales taxessales tax,
levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government.
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, which typically apply to all commodities other than those specifically exempted. In their modern form, excise taxes were first developed by Holland in the 17th cent. and established by law in England in 1643. Introduced into the Dutch colonies in America, the system spread to other colonies. Such taxes were first used by the federal government in 1791 and aroused great opposition. They were repealed (1802) in Thomas Jefferson's administration. During the War of 1812 comprehensive excise taxes were levied again but were repealed in 1817. The taxes imposed during the Civil War included an excise tax on all manufactured goods. Most of those were gradually repealed, and by 1883 only liquor and tobacco were taxed. The Spanish-American War saw a temporary expansion of excise taxes. In both World Wars such taxes were greatly increased; in World War II they were levied on furs, jewelry, and leather as well as on liquor, tobacco, and amusements. Excise taxes, which account for less than 10% of all federal receipts, are far less important than the income tax. Nearly all the states and many municipalities levy excise taxes. The Internal Revenue ServiceInternal Revenue Service
(IRS), division of the U.S. Treasury Dept. that is responsible for the assessment and collection of most federal taxes, except those relating to alcohol, tobacco, firearms, and explosives.
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 collects federal excise taxes in the United States.
References in periodicals archive ?
Since fiscal year 2000, federal and state governments have increased cigarette excise taxes 110 times.
The excise taxes to which this rule applies are generally those in Code chapters 31 through 36 and 38, including those on retail, manufacturing, facilities and services, wagering activities, and certain insurance policies.
If a purchaser pays the excise tax on a fuel and can substantiate that another taxpayer has already paid the excise taxes due, the purchaser may be eligible to submit a claim for refund of fuel excise taxes paid.
Leominster collected about $26,000 more in excise taxes last fiscal year compared with fiscal 2008, but is projecting a loss of about $200,000 this fiscal year.
Some types of excise taxes have separate forms, such as the heavy highway vehicle use tax (Form 290), gas guzzler tax (Form 6197), and excise tax on greenmail (Form 8725).
State cigarette excise taxes have long been used to raise revenue, curb smoking and fund tobacco prevention and smoking cessation programs.
By the conservative estimates of independent and government economists and experts on smoking, every 25-cent increase in excise taxes, indexed to keep pace with inflation, would discourage about 1 million persons from smoking and save between 200,000 and 300,000 of them from premature death.
The increased excise taxes it imposes clearly make reversions less attractive, and the higher PBGC premiums will certainly increase employer costs.
The corporation was unable to file timely claims for refunding all federal excise taxes paid as the statute of limitations had expired before the income tax audit was completed.
Qualified subchapter S subsidiaries (QSubs) and certain other single-owner disregarded entities would be responsible for paying employment and excise taxes under new IRS guidance.
Observation: Taxpayers currently paying excise taxes on insurance purchased from foreign insurers to protect exported goods should consider whether they qualify for exemption from such taxes under the export clause.
Since Cook County and the City of Chicago apply additional excise taxes of their own, the new tax will bring the per pack tax on cigarettes in Chicago to 70 cents per pack.