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unusual facts about excise tax



Excise Tax Reduction Act of 1954

The United States Excise Tax Reduction Act of 1954 actually temporarily extended the 1951 excise tax increases (through March 31, 1955), but also reduced excise tax rates on, among other things, telephones, admissions, and jewelry.

Fuel tax

Excise taxes on gasoline and diesel are collected both federal and provincial governments, as well as by some select municipalities (Montreal, Vancouver, and Victoria); with combined excise taxes varying from 16.2 ¢/L (73.6 ¢/imperial gal; 61.2 ¢/US gal) in the Yukon to 30.5 ¢/L ($1.386/imperial gal; $1.153/US gal) in Vancouver.

Indian Salt Service

In 1856, the government appointed the young William Chichele Plowden, Secretary of the Board of Revenue of the North West Provinces, to report on the establishment of a uniform system of revenue realisation from salt within the British Provinces, and he recommended the extension of the excise system, the reduction of duty, and the introduction of a system of licensing as the measures to achieve this goal.

IRA Required Minimum Distributions

The IRS penalty is an excise tax equal to 50% of the amount they should have withdrawn.

North Carolina Parks and Recreation Trust Fund

The primary funding source for the trust fund is the N.C. excise tax on real estate transfers.

Registrar of Imported Vehicles

The RIV program also requires anyone importing a vehicle into Canada to pay a RIV fee of $195+GST CAD (and QST if being imported into Quebec) in addition to a $100 CAD excise tax paid to Canada Customs and Revenue Agency if the vehicle has air conditioning.


see also

Federal telephone excise tax

On May 10, 2005 The American Bankers Insurance Group won an important victory in the fight against the telephone excise tax, when the United States Court of Appeals for the Eleventh Circuit reversed the decision of the United States District Court for the Southern District of Florida, which had held that the services that ABIG purchased from AT&T were taxable.

Taxing and Spending Clause

In the case, oil produced within a defined geographic region above the Arctic Circle was exempted from a federal excise tax on oil production.