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excise tax |
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Excise tax Federal or state tax placed on the sale or manufacture of a commodity, typically a luxury item e.g., alcohol.
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Businesses and tax-exempt organizations may use a formula to estimate their Federal telephone excise tax refunds. Initially imposed to raise revenue for the Spanish-American War, the telephone excise tax was revised in 1965 to permit the feds "to tax long-distance calls based on elapsed time, distance, or both," observed the Chicago Tribune. Recently the District of Columbia Circuit Court of Appeals joined the and Eleventh Circuits in holding that the federal communications excise tax does not apply to telephone charges calculated solely on a time basis. |
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