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 Wisconsin, excise taxes are levied on various goods and activities. For instance, the state imposes an excise tax on cigarettes, alcohol, and motor fuels. The tax on cigarettes is a specific tax, meaning it is a set amount per pack, while the tax on alcohol can vary and may be ad valorem, based on the value of the product, or specific, depending on the type of alcoholic beverage. Motor fuel taxes are also specific taxes charged per gallon. Additionally, Wisconsin imposes a gambling tax on the net receipts from games of chance. Unlike some other states, Wisconsin does not have an occupation tax on attorneys. These taxes are collected by the Wisconsin Department of Revenue, and the revenue generated is used for various state-funded programs and services, including infrastructure and public health initiatives.