Luxury Tax

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Luxury Tax

A tax on a good or service that is not considered essential. Luxury taxes may be levied, for example, on sail boats or gold watches. Luxury taxes primarily impact wealthy persons, but are otherwise structured like a sales tax or a VAT. That is, a luxury tax is a percentage of the value (or the added value) of the good or service being sold.
References in periodicals archive ?
The excise officials added that the owners of these bungalows were reluctant to pay pending luxury taxes by using their complete political influence and neglecting the recovery notices issued by the E and T Department.
He shows that luxury taxes that are uniformly imposed as a linear function of a club's payroll and that are not redistributed to other clubs do not affect club profitability because the decline in salaries equals the increase in taxes.
During the life of luxury taxes on passenger vehicles, the sales price threshold was indexed to reflect inflation, in increments of $2,000, and the tax rate was decreased as part of the phaseout of the tax legislated in the Small Business Job Protection Act of 1996.
Of course, governments have tried without much success to restrict luxury spending through the use of sumptuary laws and luxury taxes (many of which were more aimed at reinforcing class distinctions than at reducing social waste) at least since the days of the Roman republic.
These include strong "luxury taxes" paid to Brussels on the deficit amount.
Cost containment alludes to salary caps and/or luxury taxes. Salary caps earmark a fixed percentage of industry revenues for player salaries.
Even tariffs aren't necessarily retaliation; tariffs on automobiles, for instance, are redefined as luxury taxes.
President Bush's veto of HR 11, the Revenue Act of 1992, indicates that tax advisers should consider the continued applicability of the luxury taxes imposed by the Revenue Reconciliation Act of 1990.
According to the Service, luxury taxes should be reported on Form 720, "Quarterly Federal Excise Tax Return." This form is currently being revised to include the reporting of the taxes and is expected to be available soon.
SIALKOT -- The Excise and Taxation has issued the final recovery and warning notices to the owners of 90 banglows for not paying outstanding luxury taxes.
The New York Daily News reported that Nets owner Mikhail Prokhorov could have to pay $107.5 million in luxury taxes over the next four years should the Nets acquire Howard, but that it won't curtail the organization from aggressively pursuing the All-Star center.
The "Product Market" focuses on methods of increasing attendance; the "Labor Market" deals with the effects of free agency, salary arbitration, and other structural changes in baseball on players' salaries; "Salary Arbitration" addresses the ability to predict arbitration outcomes based on a number of different factors; "Luxury Taxes and Revenue Sharing" analyzes the potential impact of the implementation of such in baseball and other sports leagues; and "Special Topics" covers subjects from segregation and technical efficiency in major league baseball to labor relations in Japanese baseball.