What is Excise?
An''' excise''' or '''excise tax''' is an [[indirect tax]] charged on certain [[goods]].<ref name=Investopedia>{{cite web |url=http://www.investopedia.com/terms/e/excisetax.asp |title=Excise Tax |publisher=Investopedia, LLC |access-date=6 March 2016}}</ref> As an indirect tax, they are charged by the producer or the merchant who then has to pay the [[government]].<ref name=Investopedia/> For the same reason they are also not considered a [[sales tax]]. Excise taxes are commonly part of the [[retail]] price of a [[product (business)|product]] such as [[gasoline]], [[Alcoholic drink|alcohol]] or [[cigarette]]s.<ref name=InvAnsw>{{cite web |url=http://www.investinganswers.com/financial-dictionary/tax-center/excise-tax-1495 |title=Excise Tax |publisher=InvestingAnswers, Inc |access-date=6 March 2016 }}{{Dead link|date=October 2022 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> Excise taxes may be charged by both [[US states|state]] and [[Federal government of the United States|federal governments]].<ref name=InvAnsw/> == Excise vs sales tax == Excise taxes are different from sales tax in two important ways.<ref name=AccTx>{{cite web |url=https://www.accuratetax.com/blog/what-is-excise-tax-and-how-does-it-differ-from-sales-tax/ |title=What is Excise Tax and How Does it Differ from Sales Tax? |publisher=AccurateTax.com |access-date=6 March 2016}}</ref> First, excise is charged only on specific goods.<ref name=AccTx/> Sales tax can apply to most things a person might buy although certain [[jurisdiction]]s may exempt food or clothing. Excise taxes are usually applied to [[wikt:luxury|luxury]] goods or products linked to [[health]] issues such as [[wikt:tan|tan]]ning salons or cigarettes.<ref name=AccTx/> Secondly, sales tax is charged as a [[percentage]] of the purchase price.<ref name=AccTx/> An excise tax is usually a fixed amount added to the price.<ref name=AccTx/> It can be hard to tell how much excise tax a person pays because it is part of the purchase price.<ref name=AccTx/> Sales tax is added to the price