An excise tax is a tax imposed on the manufacture, sale, or use of goods—such as cigarettes, fuel, or alcohol—or on an occupation—such as a license tax or an attorney occupation tax—or on an activity such as gambling or betting.
Excise taxes may be ad valorem (calculated by percentage) or specific (calculated per unit).
In Texas, excise taxes are applied to various goods and activities. For instance, the state imposes a tax on cigarettes, alcohol, and motor fuels. The Texas Alcoholic Beverage Commission regulates taxes on alcohol, which vary depending on the type of beverage and its alcohol content. The Texas Comptroller of Public Accounts oversees the collection of tobacco taxes, which are specific taxes per pack of cigarettes or per ounce of other tobacco products. Motor fuel taxes in Texas are also specific taxes, charged per gallon of gasoline or diesel fuel. Additionally, Texas imposes a mixed beverage gross receipts tax on the sale of mixed beverages by businesses. Unlike some states, Texas does not have a state-level occupational tax on attorneys. However, local jurisdictions may have their own regulations and taxes on gambling or betting activities. Excise taxes in Texas can be either ad valorem, based on the value of the item or service, or specific, based on a fixed amount per unit.
