Excise Age Title For Free

When you purchase a vehicle in Maine, the state collects a 5.5 percent state sales tax in addition to other fees listed within the sales contract, as found in the Sales Tax Handbook.

In general, an excise tax is a tax is imposed on the sale of specific goods or services, or on certain uses. Federal excise tax is usually imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco and other goods and services.

BASIC CONCEPT: Excise Tax is a tax on the production, sale or consumption of a commodity in a country.

General fund excise taxes are imposed on many goods and services, the most prominent of which are alcohol, tobacco, and health insurance. Other general fund excise taxes include taxes on local telephone service, vehicles with low-mileage ratings (?gas guzzlers?), ozone-depleting chemicals, and indoor tanning services.

Many excise taxes go into trust funds for projects related to the taxed product or service, such as highway and airport improvements. Excise taxes are independent of income taxes. Often, the retailer, manufacturer or importer must pay the excise tax to the IRS and file the Form 720.

In Maine the excise tax is based on the MSRP (manufacturer's suggested retail price) of the vehicle when it was sold new....For example: Sticker price: $26000.00. Destination charges: $550.00. $26000.00 ? $550.00=$25450.00. $25450.00 x . 024=$610.80. The excise tax due will be $610.80.

When you buy a car, you have to pay Indiana sales tax on the purchase, plus excise tax to register the vehicle. The state charges a 7% sales tax on the total car price at the moment of registration.