Is it legal for a State to collect sales tax on the taxed (Federal & State) excise or sin tax on gasoline, alc

Question

ohol and cigarettes?

Answer 1

In Ohio, they say:

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The Federal government and the State of Ohio impose excise taxes which, depending on their nature, may or may not be included in the total amount (price) subject to Ohio sales or use tax.


EXCISE TAXES INCLUDED IN "PRICE"


Assuming that the item sold is subject to Ohio sales or use tax, the amount attributed to an excise tax imposed on the manufacturer, distributor, wholesaler, or retailer (someone other than the final consumer) by the Federal government or the State of Ohio is part of the "price" used for calculating sales or use tax. This applies even if the tax is separately stated on the invoice.


For example, the State of Ohio imposes an excise tax on cigarettes. This tax is required to be paid by the wholesaler before the cigarettes can be sold to retailers. This tax is then passed on to the retailers and the retailers pass it on to the final consumer. Each pack of cigarettes upon which the tax has been paid by the wholesaler is marked with a tax stamp. Because this tax is imposed on the wholesaler and not directly on the consumer, it becomes part of the "price" for calculating sales or use tax.


Another example is the federal luxury tax imposed on the retailer of luxury passenger vehicles. This tax is required to be paid by retailers when the first retail sale or lease of a luxury passenger vehicle occurs. The retailer can elect to pass all or part of the cost of the tax on to the consumer. Since this tax is imposed on the retailer and not the consumer, any amount of the Federal luxury tax that is passed on to the customer becomes part of the "price" for calculating sales or use tax. This is true even if the tax is separately stated on the invoice.


Other taxes that must be included in "price" include, but are not limited to, Ohio's personal property tax on leased equipment, federal and state excise taxes on alcoholic beverages, and federal excise taxes on tires. This holds true even if the tax is separately stated on the bill of sale or invoice.




EXCISE TAXES NOT INCLUDED IN "PRICE"


When an excise tax is imposed on the final consumer (i.e. the retailer must collect it from the consumer), it is not to be included in the "price" for calculating sales or use tax.
For example, the Federal government imposes a 12% federal retail excise tax on the consumer of heavy trucks. Retailers of heavy trucks are required to collect this tax from the consumer when the trucks are sold.

Since this is a tax levied directly on the consumer, it is not to be included in "price" when calculating sales or use tax. However, in order to be excluded from the tax base, this federal retail excise tax must be separately stated on the invoice.
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Quick Summary: In Ohio if the excise tax is charged directly to the consumer it is not taxed for sales tax purposes, but if the excise tax is paid further up the line then it is. (They use cigarettes and alcohol as examples of taxable).

Each state could be different though. If you call yours they should know something like this.

Answer 2

It is about power and control over us. If they tax us so we end up spending 50-60% or more of our income in taxes the vast majority of us will not have any money to do anything other than to support ourselves and our families. If we want to do something like go to college or buy a home, we will need some sort of hand out from the government to do it. School loans, home mortgage exemption, etc. They will use OUR money to bribe (blackmail) us into doing what they want. For example, they wanted us to buy more energy efficient appliances to they bribe us to do it by giving us some of OUR money back to do it in the way of incentives. And they can turn around and bribe the states to do what they want too. For example, back in 73 the feds wanted to lower the speed limits to 55 but they did not and do not have the power to do that directly. So they told the states that if they did not do it, the feds would cut off flow of OUR tax dollars to that state for highway construction and maintenance. And every state lowered the speed limit... We have enough taxes. What we need is taxes tied to certain functions of government. For example, highway gas taxes should only be used to maintain the roads. Period. Airplane ticket taxes should only be used to maintain the air traffic control and airport system. Period....

Answer 3

Sure! Many do just that! Excise taxes are built into the cost of most goods, not just gasoline, booze, and butts.

Answer 4

Absolutely.