What is an excise tax?
Get Legal Help Today
Secured with SHA-256 Encryption
UPDATED: Nov 6, 2013
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
An excise tax is imposed when certain acts are performed, for engaging in particular occupations, for obtaining certain licenses, and for the enjoyment of certain privileges granted by the government. There are a variety of excise taxes which arise in all sorts of activities – manufacturing, retailing, wagering, environmental activities, qualified investment entities, “golden parachute” arrangements, and certain group health plans – to name a few. In addition, anytime you have to pay for a license or a permit – building permits, occupational licenses, dump fees, and even parking meters – these payments can be considered as an excise tax.