FTA :

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• EXCISE TAX
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What Is Excise Tax ?

      Excise tax may also be termed as sales tax or ad valorem. In case of sales tax, the amount is usually fixed or specific. Whereas, ad valorem generally means tax charged as a percentage on the total value of any commodity. Excise tax may be simply put up as tax charged on the sale of a particular item. It falls under the category of indirect taxes. More..

Federal excise taxes are charged on various commodities. Vehicle is one such commodity. If you happen to import a particular heavy vehicle either for business purpose or for self use, there is a charge on that. Purchase as well as sale of such vehicle will always be taxed. Such vehicles can be the ones polluting the environment and hence, such a tax is levied on it.

Do not get confused between custom duties and excise tax. Even though you might take the vehicle on lease basis you still would be liable to pay tax. Section 4051 clearly explains federal excise charges on vehicles.

We might put some light on it here. Traders involved in the business of importing such vehicles would be well aware of tax rates. But for the once who are not here are some viewpoints. Let us assume a person of foreign origin person decides to start a business in the US. His business might need use of certain vehicles which might be situated in some other country. Hence, when he imports that particular vehicle he will be charged federal excise tax.

The tax levied on shall be the same be it a used vehicle or a brand new one. If you are purchasing that car for your personal purpose, then make sure you are ready to pay the high price for it. If you plan to sell one to a foreign national, then again the excise charged would be different. They are charged on the percentage of the total car price. If your car does not qualify the federal fuel rules, then you will be charged the guzzler tax.

If you have purchased a new automobile for self use, then it falls under luxury tax, whereby a 4% is charged if the price crosses the minimum amount. Lastly, make sure that you have the necessary documents required for importing such vehicles and are agreed upon by the custom authorities.

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• Excise Tax Regulation
• Federal Alcohol Excise Tax Rates
• Guide To Excise Tax
• Vehicle Federal Excise Tax
• What Is Excise Tax ?