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 Maine (ME), excise taxes are levied on various goods and activities. For instance, the state imposes an excise tax on tobacco products, motor fuel, and alcoholic beverages. These taxes are often specific, meaning they are charged per unit, such as per gallon of gasoline or per pack of cigarettes. Maine also imposes excise taxes on certain activities, like gambling. The state does not currently impose an occupation tax on attorneys or other professions. Instead, professionals, including attorneys, pay licensing fees to the state for the right to practice. The revenue from excise taxes is typically earmarked for specific state funds or programs, such as highway maintenance for fuel excise taxes or health programs for tobacco excise taxes. It's important to note that excise tax rates and regulations can change, so for the most current information, individuals and businesses should consult the Maine Revenue Services or an attorney specializing in tax law.