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 Oklahoma, excise taxes are levied on various goods, activities, and occupations. For instance, the state imposes a significant excise tax on tobacco products, alcoholic beverages, and motor fuels. These taxes are often specific, meaning they are charged per unit, such as per pack of cigarettes or per gallon of gasoline. Additionally, Oklahoma charges excise taxes on certain activities like gambling. The state also imposes a mixed beverage tax, which is a percentage-based (ad valorem) tax on the sale of mixed beverages. While there is no specific 'attorney occupation tax' in Oklahoma, attorneys, like all other businesses, are subject to applicable business taxes and fees. The revenue from excise taxes is typically earmarked for specific state funds or programs, and the rates and regulations are subject to change through legislative action.