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 New York State, excise taxes are levied on various goods, services, and activities. For instance, cigarettes are subject to both a state excise tax and a New York City excise tax if applicable. Alcohol also carries state excise taxes that vary depending on the type of alcoholic beverage. Motor fuel excise taxes are imposed on gasoline and diesel fuel, which help fund transportation infrastructure. When it comes to activities, New York imposes excise taxes on gambling winnings. These taxes can be either ad valorem, meaning they are based on the value of the product or service (such as a percentage of the sale price), or specific, meaning they are a fixed amount charged per unit (such as cents per gallon of fuel or per pack of cigarettes). The specific rates and regulations are detailed in New York's tax law and are subject to change, so it is important for businesses and individuals engaged in these activities to stay informed about the current tax rates and requirements.