: Firearms, ammunition, sport fishing equipment, and bows and arrows. Calculation Methods
Excise taxes are applied at federal, state, and local levels to a wide variety of items:
Excise Tax 101: Definition, Examples, State vs. Federal - IGEN excise tax
: They are used to raise revenue for specific public projects (e.g., highway funds from fuel tax) or to discourage behaviors deemed socially harmful (often called "sin taxes"). Common Taxed Items
: Unlike general sales tax, excise tax applies only to specific categories like fuel, tobacco, or luxury goods. : Firearms, ammunition, sport fishing equipment, and bows
: These taxes are typically paid by manufacturers or retailers to the government, who then pass the cost to consumers by including it in the product's price.
: Indoor tanning, wagering (gambling), and certain health care-related fees. Common Taxed Items : Unlike general sales tax,
: Gasoline, diesel, kerosene, airline tickets, and heavy trucks.