Changes

Consequently, excises in the United States currently tax only certain luxury items and licensed activities, such as liquor, tobacco, luxury automobiles, aviation permits, and certain government-connected activities.

Consequently, excises in the United States currently tax only certain luxury items and licensed activities, such as liquor, tobacco, luxury automobiles, aviation permits, and certain government-connected activities.

The assessment of an excise is usually (but not always) triggered by the transfer or sale of a certain commodity.  It’s important to understand, however, that an excise is defined by '''what''' it taxes -- privilege and luxury -- not by how or when it is triggered.  In 1911, the Supreme Court clarified this in Flint v. Stone Tracy Co.: "Excises are taxes laid upon the manufacture, sale, or consumption of commodities within the country, upon licenses to pursue certain occupations, and upon corporate privileges... the requirement to pay such taxes involves the exercise of  ’'''privileges''''."  

The assessment of an excise is usually (but not always) triggered by the transfer or sale of a certain commodity.  It’s important to understand, however, that an excise is defined by '''what''' it taxes -- privilege and luxury -- not by how or when it is triggered.  In 1911, the Supreme Court clarified this in Flint v. Stone Tracy Co.: "Excises are taxes laid upon the manufacture, sale, or consumption of commodities within the country, upon licenses to pursue certain occupations, and upon corporate privileges... the requirement to pay such taxes involves the exercise of  ’'''privileges''' ' ."