Excise

Question: What is an excise tax and why do I have to pay so much? During a portion of 2005 and 2006 I purchased a total of 18 cartons of cigarettes online for a discounted rate. These were not sold, they were for my own personal use, also for my boyfriend. I received a bill today in the mail for almost $500 for sales and excise tax. The sales tax total is $60.00, but the excise tax is $420.00. What exactly is the excise tax and how is the state of NJ able to charge me the excise tax and is there anything I can do to reduce these charges? I just wanted to get some answers before I called and paid anything.

Answer: I take it you live in NJ? Sorry to have to tell you this, but if you buy cigarettes there are taxes on the cigarettes that you buy. If the seller doesn't collect the excise tax from you (which if it sold at a discount rate the seller probably didn't), and your state finds out about it (I am seeing more questions in yahoo answers regarding this issue) then they will send you a bill for the uncollected taxes (possibly also interest and penalties). Nothing you can do to reduce the charges. NJ rate is 2.40 per pack effective 7/1/2005.

Question: What is the difference between a excise tax and a sales tax? my economics book explains it but I still dont understand. I know I'm probably just being dumb but to me they are pretty much the same thing. Only sales tax is on everything you buy and excise tax only on certain goods? I dunno. Any help?

Answer: There are two differences. The most important is that a sales tax is on lots of things. Just about everything you would buy in a store you have to pay sales tax on. An excise tax is just on a few things. Sometimes only one thing. For example, there is an excise tax on cigarettes. In most states there is also an excise tax on alcohol. These taxes are there because cigarettes and alcohol are considered "bad" and the government wants you to have to pay more, in the hopes that you will buy less. The second difference is that sales taxes are usually a percentage. In North Carolina, where I am from, its 7%. So to find the tax you add up all the items and then add 7% more. An excise tax is usually a specific amount. For example, the excise tax on cigarettes here is 55 cents per pack. It doesn't matter how much the pack costs. In addition, the excise tax is already included in the price. 55 cents is a low cigarette tax and that is why cigarettes are so cheap in North Carolina.

Question: How can i excise my rabbits in the winter? When the grounds all wet and its raining and snowing, How can I excise my rabbit? Should i bring my rabbits inside to play? I have two rabbits.

Answer: Let them run around the house they will love it! My friend lets hers in all the time and they use a cat litter tray too.

Question: Do I have to pay a excise tax when shipping a motorcycle from Florida to Puerto Rico? I've have received conflicting information on this. Some people say that I don't have to pay excise tax if it is a motorcycle, some say I do. Does anybody knows?

Answer: Yes, any motor vehicle or home goods which you have shipped to puerto rico have an excise tax. If you are shipping via crowley, you would go there and pick up the paperwork which you must take to Hacienda and pay. Then bring back the receipt and pick up your bike. The amount depends on make, model, year, and value. If the motorcycle doesnt pay because of a low value, you will stay pay some tax which is about $30 minimum. It can honestly cost between the minimum $30 and about $800 depending on the aforementioned information

Question: Does an individual have to claim interest earned from the Telephone Excise Tax refund? I received the Telephone Excise Tax credit plus interest on my 2006 taxes. I received a 1099 misc report from the IRS reminding me about the interest gained in 2007. I'm assuming that I need to show this on my 2007 taxes. A follow up question is which line on the standard 1040 do I used to report the interest income?

Answer: Interest from the IRS is reported just like any other interest - on line 8a if you are filing a 1040.

Question: How do you lose weight without taking pills are getting excise equiment? okay well i don't want to take pills or use excise exxpiment to lose weight, what are some diets and excise i could do?

Answer: I have been using www.livestrong.com, you sign up and keep track of everythingg you eat. It shows you how many calories you need to eat in a day for what you want to lose with how much physical fitness you do. You can also just go on and check to see how many calories are in foods for places like applebee's and KFC. It's great for loosing weight because it shows you how much you really are eating. Its helped me loose 4 lbs in 1 week so its pretty great if you keep it up.

Question: How do u calculate the excise duty payable for DTA sale of software by a 100% EOU? Section 3(1) of the the Central Excise act provides that aggregate of customs duties shall be paid as Central Excise Duty for clearance by 100 EOU. Do you need to pay Education CESS and Higher Education CESS on the aggregate of Customs Duties? If so what are the provisions?

Answer: hey, I suggest u see http://www.ebiznus.com for this. I hope this will be resolving your problem you can also browse more for this on answers.yahoo.com but i think you better look at what i suggested instead of wasting ur time. Best of luck.

Question: In Massachusetts do you have to pay for excise tax on a leased car? is there a tax break on luxury cars? How is the excise amount determined, I understand it is $25 per $1000, but is based on the bluebook value of the car or on how much you owe?

Answer: I asked the Assessor's office in my town of Auburn, MA about how the value is determined. It is based on the Manufacturer's Suggested Retail Price (MSRP) when the car was new. The value is reduced for depreciation ( I think over 5 years) to a minimum amount that stays at that level. The only tax breaks on cars that I know of are the credits for alternate fuel vehicles. If you use your car for business and depreciate it, you are actually penalized because there is a limit to the maximum depreciation that you can claim (you depreciate less than the business % of your cost.) I have never leased a car, but I believe that the excise tax is included in your lease payment. Ironically, I once had 3 cars, a 2000 Chevy Malibu, a 1996 Plymouth Voyager Minivan and a 1993 Mercury Sable. Even though the Sable was the oldest, it had (and will always have) the highest excise tax of the three vehicles even though it was the oldest.

Question: How do you Calculate equilibrium after excise tax on this equation? I need help with some econ HW. I know how to find the equilibrium normally, but how or what does the equation change to if a $5 excise tax is added? What would the new equilibrium be? I seem to be missing something and am not coming up with the right answer. P = 50- 2Qd P = 10 + .5Qs If a $5 excise tax were to be added. What is the new Pe and Qe??

Answer: Presumably just add 5 to each equation? (replace P with P - 5) because the price minus the $5 tax is what is dependent on supply and demand.

Question: What is excise tax and do I have to pay it on a used vehicle (from a dealer)? I am planning on purchasing a used domestic vehicle, from a dealer, and there is a excise tax on the bill of sale. Do I have to pay it? Or can I negoiate it off? I apologize - I forgot to mention that I am located in Canada. Thanks to those that responded from the US. The excise tax is probably similar in both countries.

Answer: Excise tax is a tax that the state collects, based on the value and age of vehicle, when registering/ plating your vehicle. Here in Indiana, the owner pays it annually upon renewing their vehicle's registration/ license plate, Not Paid to Dealer...

Question: How did Thomas Jefferson feel about the Whiskey excise and the Protective Tariff? I know he opposed Alexander Hamilton and was against both of these jurisdictions, but what were Jefferson's reasons behind discouraging against the Whiskey Excise and the Protective Tariff?

Answer: The Protective Tariff was meant to shelter the developing manufacturing industry, and Jefferson believed that agriculture should be the most important and favored branch of the economy with manufacturing receiving no special protection. As for the Whiskey Excise, my guess is that he was simply distrustful of most taxation by the government given America's history with the British government. Also, it weighed most heavily on the backcountry farmers that made up most of Jefferson's party's political support.

Question: Would i have to fill in a customs excise form when posting a letter to outside the EU? If you sent some paper documents through the post to Pakistan/ India, would you have to fill out a customs excise form or is it only when you send actual physical goods?

Answer: A customs declaration is normally only required if sending goods, foodstuffs, or money. Just pop along to your local post office and they will advise the best option. If not using the post office, the delivery firm (eg DHL, UPS) will also advise if a customs declaration is necessary.

Question: Does the US government have excise taxes on tobacco other than cigarettes? Like on cigars, snuff, and chewing tobacco. Are there excise taxes on that? Thanks.

Answer: Here's the 2009 excise tax instruction complete with tax table,,

Question: What happens when your items are stopped by custom and excise? If someone sends you a 600 box of cigarettes within the EU and Her Majesty's Custom and Excise stop them on route - you receive a note to tell you to pay up or have the items destroyed - what happens next? Do you have a criminal record or are you on file or is it just pot luck and items are checked randomly? Custom and excise with the Royal Mail

Answer: You cant have them they will be seized and a notice sent from customs informing you of the fact. You can pay the excess duty. You wont be prosecuted but if its a regular occurrence they may decide to take it further

Question: Do I have to pay off excise tax in a different Town/State in order to get a license in a different state? My sister has moved from a city in MA and has an outstanding excise tax bill for that city - will that hinder her getting a license in her new residence in NH?

Answer: no, probably not, because a friend of mine is in the same predicament. friend of mine own a boatload 1000+, guy moved to MA and everything turned out to be ok. Also MA and NH towns do not share these infos. MA RMV does not share infos with other states.

Question: What are the consequences for refusing a breathalyzer test to an excise officer when you are just walking? I'm a minor who is hearing various stories about excise officers and laws

Answer: Hey buddy If you are driving or hunting there may be circumstances in which police can demand submission to a bodily fluid or gas search for alcohol concentration. I am unaware of any law or legal authority that gives police any legal right to such a search of a pedestrian. It seems I have answered this question thousands of times, always after it is too late. The pedestrian was not required by law to submit to a PBT. Police will generally claim they simply requested it, and the pedestrian consented. If true, consent can make an otherwise illegal search, legal. Generally the police cannot simply stop someone walking down the street and demand that they submit to a breath test, they would need some sort of reasonable, articulable suspicion to request the test, unless they are able to establish that the PBT was given by consent.. Now, breathalyzers are considered in some states a "search" since you are taking the breath from inside the subjects body and using a device to search the breath for alcohol. If you went straight to that with further evidence, a defense lawyer would eat you alive and he would get off for violating his rights. Same for anything. If I was a cop walking down the street, randomly stopped a guy and started digging through his pockets and found a bag of cocain...he would get off scott free and I would lose my job

Question: What effects would an increase of excise taxes on cigarettes have on aggregate demand or aggregate supply? What effects would each of the following have on aggregate demand or aggregate supply? In each case state where the aggregate demand effected and in which direction or the aggregate supply is effected and in which direction. Assume all other things remain constant. a. A widespread fear of depression on the part of consumers. b. A large purchase of US wheat by Russia. c. A $1 increase in the excise tax on cigarettes. d. A reduction in interest rates at each price level.

Answer: a. A widespread fear of depression on the part of consumers. As consumers fear a depression, they will save more out of precaution. Hence, aggregate demand will decrease. b. A large purchase of US wheat by Russia. The increase in demand will incrase prices for wheat in the U.S., which will make wheat production more attractive to U.S. farmers. Hence, aggregate supply will increase. c. A $1 increase in the excise tax on cigarettes. It has been shown that higher prices for cigarettes discourage smoking. Every 10 percent increase in the price of cigarettes reduced youth smoking by about seven percent and overall cigarette consumption by about four percent. Hence, aggregate demand for cigarettes will decrease. http://tobaccofreekids.org/research/fact… d. A reduction in interest rates at each price level. As interest rates decrease, consumers will borrow more. Hence, aggregate demand for loans will increase.

Question: When goods are exported without charging excise duty, can duty draw back can be claimed? I am exporting manufactured goods without charging excise duty. Can I claim the AIR rate of duty draw back in addition to the duty benefit?

Answer: if the duty paid is on imports , then the duty you are paying is a duty which has the objective of discuraging imports, if you export after processing then you can claim irrespective of excise duty on your manufacture. You can not get Modvat or cenvat credit on inputs by just exporting.

Question: Will I be unable to renew my license if I have unpaid excise tax in another state? I have an unpaid excise bill from Hartford, CT from 1995. It was originally around $80 but now due to interest it has climbed to $800. I have been living in MA since 2000 and I have just now been informed of this debt, which I have no means of paying as I am on a fixed income. If I ignore this bill, will I be unable to renew my driver's license in Massachusetts?

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Question: How do I get my automobile excise tax refunded? There are actually 2 sub questions. a) I'm moving to another state, from Mass. to Texas to be exact and I just payed my annual excise tax. I'm going to move to Texas and I talked to a rep and they told me I can get it back. What would I need to do and what sort of documents will I need to prepare besides my Mass license. b) I just filed my taxes but I forgot about the excise tax. For future reference, is that something that you can refund on, is it even worth it? Thanks.

Answer: 1. If you're entitled to a rebate you'd apply for that with the city or town tax collector. Normally if the vehicle is registered to you on the assessment date you won't get any rebate though. Generally you have to remove the vehicle from the state prior to the assessment date. The tax collector's office can explain it to you; it's been ages since I got a MA Vehicle Excise Tax rebate. 2. The excise tax is a personal property tax and in MA it is based upon the value of the vehicle so you can deduct it as property taxes if you are itemizing. If you're not itemizing it won't be worthwhile though.