#tax excise

[dontmeantobepoliticalbut]

By Topher L. McDougal

California will be the first U.S. state to charge an excise tax on guns and ammunition, starting in July. The new tax — an 11% levy on each sale — will come on top of federal excise taxes of 10% or 11% for firearms and California’s 6% sales tax.

The National Rifle Assn. has characterized the law that allows this new tax, the Gun Violence Prevention and School Safety Act, as an affront to the Constitution. But the reaction from the gun lobby and firearms manufacturers may hint at something else: the effect that the measure, which is aimed at reducing gun violence, may have on sales.

For the record: 10:20 a.m. May 21, 2024 — An earlier version of this piece stated that U.S. gun sales grew tenfold over the past 20 years. They grew fourfold.

One way to think about the law’s ramifications is to compare state tax policies on firearms with those on alcohol and tobacco products. It’s not for nothing that these all appear in the name of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The ATF focuses on those products because, while legal, they can cause significant harm to society in the form of drunken driving, for example, or cancer-causing addictions. They also have a common history: All have been associated with criminal organizations seeking to profit from illicit markets.

Alcohol and tobacco products are thus usually subject to state excise taxes. By making a given product more expensive, this type of tax leads people to buy less of it, reducing the harm to society while generating tax revenue that the state can theoretically use to offset those harms that still accrue.

California, for instance, imposes a $2.87 excise tax on each pack of cigarettes. That tax is higher than the national average but much lower than New York’s $5.35 levy. California also imposed a vaping excise tax of 12.5% in 2021.

Of the four ATF product families, firearms have enjoyed the absence of any state excise taxes. Until now.

Anti-gun advocates and policy analysts have long called for the firearm industry to be subject to the same types of taxes as alcohol and tobacco given the harms that firearms cause. The national rate of gun homicides in 2021 was 4.5 per 100,000 people, eight times higher than Canada’s rate and 77 times that of Germany. It translates into 13,000 lives lost every year.

Additionally, nearly 25,000 Americans die from firearms suicide each year. Moreover, more people suffer nonfatal firearm injuries than die by guns, according to the Centers for Disease Control and Prevention.

Gun deaths and injuries aren’t just tragic — they’re expensive. One economist estimated the benefit-cost ratio of the U.S. firearms industry at roughly 0.65 in 2009. That means for every 65¢ it generates for the economy, the industry produces $1 of costs. And that calculation didn’t include nonfatal injuries within the U.S., or the cost of firearm harms occurring outside the country with U.S.-sold weapons.

U.S. gun sales have grown fourfold over the past 20 years to about 20 million guns annually, and they’re now deadlier and more expensive than ever. California is making sure they are taxed accordingly.

And what should that tax amount to? There’s an argument to be made that firearms should be taxed at a higher level than alcohol and tobacco, which are consumable products that disappear as soon as they’ve been used — guns stick around. They accumulate and can continue to impose costs long after they’re first sold.

When the new law takes effect in July, California will tax firearms at about the level of alcohol. But the state would have to apply an excise tax of an additional 26% to equal its effective tax on tobacco.

It’s unclear how the new tax will affect gun violence. In theory, it should be highly effective. In 2023, some colleagues and I modeled the U.S. market for firearms and determined that for every 1% increase in price, demand decreases by 2.6%. This means that the market should be very sensitive to tax increases.

Using these figures, another colleague recently estimated that the California excise tax would reduce gun sales by 30% to 44%. If applied across the country, the tax could generate an additional $1.5 billion to $1.9 billion in government revenue.

But a problem may come from surrounding states: It’s already easy to illegally transport guns bought in Nevada, where laws are more lax, to California. But there’s some evidence that suggests our state’s new policy won’t be neutralized by its neighbors.

When the federal assault weapons ban expired in 2004, making it much easier to buy AR- and AK-style rifles across much of the U.S., gun murders in Mexico skyrocketed. Two studies show the exception was the Mexican state of Baja California, right across the border from California, which had kept its state-level assault-weapons ban in place.

Gun seizures in Mexico show that all four U.S. states bordering Mexico rank in the top five state sources of U.S.-sold guns in Mexico. But California contributes 75% less than its population and proximity would suggest it should.

So, California laws seem to already be making a difference in reducing gun violence. The excise tax could accomplish still more. If it does, other states may follow California’s lead and work to reduce firearm violence by hitting gun manufacturers at the spot they value most — their bank accounts.

[mylittleredgirl]

had a little panic fueled burst of productivity that accomplished nothing because i traced the needed prerequisite activities back a bunch of steps to the town office, which closes at 3:30. my brief periods of effectiveness can’t be scheduled like that!! this task was put on my list in late 2019!! i can’t wait another 4 years!!!

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[dicaeopolis]

hustled $2k raw profit on ebay last week got hit this week with about $1200 of mostly surprise bills. the lord taketh away

[crocgirl420]

Just paid off a parking ticket I’ve been avoiding since September 2021. Please clap

[cencuser]

[shuraatax]

How to Calculate Excise Tax in UAE

The United Arab Emirates introduced the Excise tax system in October 2017. This tax is an indirect tax imposed on a variety of commodities throughout production, import, and sale. The primary objective of initiating this tax is to generate revenue for the government and to discourage customers from consuming harmful products like tobacco, cigarettes, fizzy drinks, energy drinks, etc. Nevertheless, to ensure compliance with its regulations, businesses must know how to calculate excise tax in UAE in order to determine their liability accurately. The tax consultants at Shuraa Tax will be helpful and supportive in understanding, calculating, and filing excise tax returns in the UAE.

[lyfeeonline]

Kuwait: A Tax Oasis in a Sea of VAT, But for How Long?

Kuwait stands out in the Gulf Cooperation Council (GCC) for its lack of income taxes for individuals and companies wholly owned by Kuwaiti or other GCC nationals. This tax-free haven attracts businesses and boasts a high standard of living for its citizens. But with fluctuating oil prices, Kuwait is looking for new revenue streams. Enter the potential of excise taxes. For years, Kuwait has been…

[masarca]

EXCISE TAX SERVICES IN DUBAI, UAE

The United Arab Emirates (UAE) has implemented an excise tax on certain goods, including tobacco products, energy drinks, and carbonated drinks. The tax is applied at a rate of 100% on the taxable value of these goods. Which includes the cost of the goods, and customs duties. And other charges incurred in bringing the goods to the UAE. The excise tax in UAE is intended to reduce the consumption of these goods. Which are believed to have negative impacts on public health and the environment. The tax is administered by the Federal Tax Authority of the UAE. MASAR is an FTA approved Tax Agency in UAE and Provides the Best Excise tax Services in UAE

EXCISE TAX REGISTRATION SERVICES:

If you are a business that manufactures, imports or distributes taxable goods in the United Arab Emirates (UAE). You are required to register for excise tax with the Federal Tax Authority (FTA). Excise tax registration in UAE is a necessary step for businesses that are involved in the supply chain of taxable goods. Including manufacturers, importers, storage facility operators, and wholesalers. To register for excise tax. You will need to complete an online registration form on the FTA’s website. And submit it along with supporting documents. Such as your trade license and a copy of your passport. After your registration is approved, you will be issued an excise tax registration number. Which you will need to use when filing your excise tax returns and making tax payments. If you need assistance with the excise tax registration process, you can contact the FTA for guidance. You may also want to consider seeking the help of a tax professional or a legal advisor. To ensure that you meet all of the requirements and compliance obligations.

[goviinbookkeepingblog]

Excise Tax Audit Essentials: Dubai Business Owners’ Must-Knows

Navigating through the intricate waters of excise tax audits in Dubai can be a daunting task for any business owner. The mere mention of an impending audit can often evoke anxiety and uncertainty. However, fret not, as we are here to guide you through a comprehensive roadmap for excise tax audit preparation tailored specifically for Dubai businesses.

Understanding the Audit Process

visit for more info . https://www.justgetblogging.com/tax-audit-essentials-dubai-business-owners/

[lexlawuk]

HMRC Excise Duty Assessment on Importation of Tobacco from EU to UK

IThe case of Eveleigh v HMRC [2023] UKFTT 356 (TC) has reaffirmed the resilience of excise duty assessments, emphasising their validity even in the face of criminal sanctions and forfeiture. The FTT upheld a significant excise duty assessment despite concurrent criminal charges and seizures. The appellant was found liable for smuggling 1,160 kg of undeclared tobacco into the UK, resulting in an…

[bmsauditing1]

Excise Tax and Tax Registration: Your Essential Guide

Taxation is a cornerstone of any modern society, funding essential public services and infrastructure projects. Among the diverse array of taxes imposed by governments, excise tax holds a unique position, targeting specific goods and services deemed socially or environmentally harmful. Paired with tax registration requirements, navigating these fiscal obligations can be daunting for businesses and individuals alike.

Understanding Excise Tax

Excise tax, also known as duty, is a levy imposed on the production, sale, or consumption of certain goods and services. Unlike general sales tax, which applies broadly to most transactions, excise tax is selective, targeting specific commodities such as tobacco, alcohol, fuel, and luxury items. The rationale behind excise tax lies in discouraging the consumption of harmful goods while generating revenue for government coffers.

The Role of Tax Registration

Tax registration is the process through which businesses and individuals formally register with tax authorities to fulfill their tax obligations. It entails providing essential information about one's identity, business activities, and estimated tax liability. Failure to register for taxation can result in penalties, fines, or legal repercussions, underscoring the importance of compliance.

Navigating Excise Tax Compliance

Compliance with excise tax regulations requires a comprehensive understanding of statutory requirements. Businesses involved in the production, sale, or importation of excisable goods must obtain the requisite permits and licenses from relevant authorities. Additionally, meticulous record-keeping and timely tax filings are crucial to avoid penalties and maintain regulatory compliance.

Benefits of Tax Registration

While tax registration may seem bureaucratic, it offers numerous benefits to taxpayers. Firstly, it confers legal recognition and legitimacy upon businesses, enhancing trust and credibility in the eyes of stakeholders. Moreover, registered taxpayers gain access to various tax incentives, deductions, and exemptions, optimizing their tax liabilities and improving financial resilience.

Conclusion

Excise tax and tax registration are indispensable components of the fiscal framework, shaping economic behavior and revenue generation. By understanding these concepts and fulfilling their obligations, businesses and individuals contribute to the sustainable development of society while safeguarding their interests. As tax laws evolve and regulatory landscapes shift, staying informed and proactive is essential to navigate the intricacies of taxation effectively.

[if-you-fan-a-fire]

"OSHAWA JEWELLER PAYS $1,591 IN FINES," Toronto Star. June 12, 1943. Page 3. ---- Charge Under War Revenue Act First in Ontario ---- Oshawa, June 12 - Emanuel Burns, Oshawa jeweller, paid fines totalling $1.591 plus court costs today. He pleaded guilty to "failing to make proper returns covering the excise tax on retail jewelry sales."

The charge was the first laid in Ontario under the special war revenue act. According to Crown Counsel A. F. Annis the charge was laid by J. C. Cowan, Toronto, auditor of the excise division, department of national revenue.

Burns said he neglected to keep tax records because he had lost his experienced help just when the law came into effect.

[thetaxguyin]

Top Essential Terms In Taxation

Taxation is an integral part of our financial lives, influencing everything from business decisions to personal finances. However, navigating the complex world of taxes can be daunting without a solid understanding of key terminology. In this comprehensive guide, we’ll demystify taxation by exploring the top essential terms you need to know. 1. Tax: A compulsory financial charge imposed by the…

[brewscoop]

🍺📈 Calling all craft beer lovers and industry insiders! Dive into the latest on how the federal excise tax on alcohol is brewing concerns across the Canadian hospitality industry. From its impact on producers to the ripple effects on consumers and small businesses, discover why it's more than just pennies on your pint. A must-read for anyone passionate about supporting local and understanding the forces at play in our beloved craft beer and wine community. #CraftBeer #EconomicPressures #SupportLocal

[ifindtaxpro]

🍻 Tap into tax efficiency with our guide for microbreweries and craft beer businesses! Navigate excise taxes, brewing credits, and more to pour success into your brews. Cheers to fiscal savvy! 🍺💰 #Microbreweries #CraftBeer #TaxPlanning