An excise tax is a tax imposed on the manufacture, sale, or use of goods—such as cigarettes, fuel, or alcohol—or on an occupation—such as a license tax or an attorney occupation tax—or on an activity such as gambling or betting.
Excise taxes may be ad valorem (calculated by percentage) or specific (calculated per unit).
In Kansas, excise taxes are levied on various goods, activities, and occupations. For instance, Kansas imposes excise taxes on the sale of cigarettes, fuel, and alcohol. These taxes are often included in the price of the product and collected by the seller. The state's Department of Revenue is responsible for the administration of these taxes. Excise taxes on cigarettes and alcohol are specific taxes, meaning they are a fixed amount per unit (per pack of cigarettes or per gallon of alcohol). Fuel taxes are also specific and are charged per gallon. Kansas does not currently impose an occupation tax on attorneys. However, gambling and betting activities are subject to excise taxes, which can be either ad valorem or specific, depending on the type of gambling or betting activity. The revenue from these taxes typically goes towards state funds and may be earmarked for specific purposes, such as infrastructure or education.