Excise tax - definition of excise tax by The Free Dictionary.
As a result, each state may decide whether to allow sports wagering. This administration of the tax is less common. As per the intent of the excise tax, the additional cost of the wine is passed onto the consumer, making the retail cost of the bottle. Excise Tax Electronic Data Interchange (EDI) Guides (Pub. Sometimes referred to as a sin tax, the excise tax has been used to discourage what the government considers unhealthy behavior or to route the revenue collected from it toward fighting the negative consequences of that behavior. Excise tax is a flat-rate tax that applies to specific goods, services, and activities. The price with the excise tax included is the advertised price. What is an 'Excise Tax an excise tax is an indirect tax on the sale of a particular good or service such as fuel, tobacco and alcohol. . Indoor Tanning Service Providers Must File a Federal Excise Tax Return. In the.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.
However, excise taxes also go toward paying for expenses related to the good being taxed, as in how new road construction is funded by the gasoline tax. An excise tax also refers to penalty taxation for ineligible transactions in retirement accounts. Indoor tanning and medical devices. While this seemingly does not affect the maker of the wine, who's still gains 10 in revenue, an increase in price does reduce quantity demanded, which would indeed affect his balance sheet. 31, 2013, have been retroactively extended through Dec. Deposits of the Oil Spill Liability Tax. Glossary, e Excise tax, excise tax, what is excise tax? Depending on the item, the excise tax might be assessed as a percentage of the final cost, such as the.5 charged on air fare, or as a flat dollar amount per unit, like the.4 cents charged per gallon of gasoline. For example, the IRS levies a 10 percent excise tax on indoor tanning services. 19, 2014, extended the following fuel tax credits: Biodiesel (including renewable diesel) credit, biodiesel (including renewable diesel) mixture credit. Beginning July 1, 2010, indoor tanning services will be subject to a 10 percent excise tax under the Affordable Care Act. Internal Revenue Service (IRS) levies the tax on the producer or merchant, who passes it onto the consumer by including it in the product's price. Rate the Small Business and Self-Employed Website. Similarly, a 10 percent excise tax applies to distributions from an IRA, a qualified plan or a 403(b) account that occur before the participant reaches age.5 years of age, and a 50 percent excise tax, referred to as an excess-accumulation penalty, also applies to required minimum.
Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the.
Excise tax synonyms, excise tax pronunciation, excise tax trans lation, English dictionary definition of excise tax.