Federal Excise Taxes and Statutory Exemptions
Released: 1998-03-20T00:00:00

Summary:
This report consists of a chart of selected federal excise taxes that apply to sales of goods and services. The chart is divided into two columns. The first indicates how the taxes are imposed, and the second contains a general listing of statutory exemptions, with a special emphasis on whether there are statutory exemptions for federal agencies. This report does not cover such details as how the tax revenues are used, tax rates, effective dates, or sunset dates. The report does not cover payroll taxes such as social security, Medicare, or unemployment taxes, nor does it include excise taxes which are used to regulate tax-exempt organizations or the excise tax on greenmail. The report does not cover expired taxes, such as those known as the superfund taxes.
If available, CRS Reports containing more detailed information are cited in connection with each tax mentioned.

paragraphs: The chart below lists various federal excise taxes on retailers and manufacturers, the location of the tax in the Internal Revenue Code, a general rule as to who has to pay the tax, and a listing of statutory exemptions, with an indication of whether there are special exemptions for federal agencies.
The general rule for federal agencies is contained in IRC § 4907. Under IRC § 4907, the taxes imposed by subtitle D of the Code, except the occupational tax on wagering imposed by IRC § 4411, do apply to agencies and instrumentalities of the United States unless there are specific statutory exemptions. Subtitle D includes most of the excise taxes in the Internal Revenue Code, but it does not cover taxes on alcohol, tobacco, firearms, and the greenmail taxes contained in subtitle E.
IRC § 4221 contains five general exemptions from the excise taxes in chapters 31 and 32 of subtitle D. These include exemptions when the article is first sold (1) for use in further manufacture; (2) for export; (3) for use as supplies for vessels and aircraft; (4) to a state or local government for its exclusive use; and (5) to a nonprofit education organization for its exclusive use. The extent to which each of these exemptions applies to the relevant excise taxes is noted below.
subsections: section_title: Passenger Vehicle Luxury Tax IRC § 4001
section_title: Diesel Fuel IRC §§ 4041(a)(1), 4081(a)(2)
section_title: Gasoline Special Motor Fuels IRC § 4041(a)(2), 4081(a)(2)(A)(i)
section_title: Compressed Natural Gas IRC § 4041(a)(3)
section_title: Methanol and Ethanol Fuel IRC §§ 4041(b)(2), 4081(c)
section_title: Noncommercial Aviation Fuel Other than Gasoline IRC §§ 4041(c), 4091
section_title: Fuel Used in Commercial Transportation on Inland Waterways IRC § 4042
section_title: Heavy Trucks and Trailers Sold at Retail IRC § 4051
section_title: Gas Guzzler Tax IRC § 4064(a)
section_title: Tires of the type Used on Highway Vehicles IRC § 4071
section_title: Coal IRC § 4121
section_title: Vaccines IRC § 4131
section_title: Sporting Goods IRC § 4161
section_title: Firearms IRC § 4181
section_title: Communications IRC § 4251
section_title: Transportation by Air IRC § 4261
section_title: Transportation of Property by Air IRC § 4271
section_title: Foreign Insurers IRC § 4371
section_title: Wagering IRC § 4401
section_title: Occupational Tax on Wagering IRC § 4411
section_title: Ship Passengers Tax IRC § 4463
section_title: Highway Use Tax IRC § 4481
section_title: Ozone-Depleting Chemicals IRC § 4681
section_title: Unregistered Obligations IRC § 4701
section_title: Wagering Occupational Tax IRC § 4901
section_title: Gallonage Taxes IRC § 5001
section_title: Wines IRC § 5041
section_title: Beer IRC § 5051
section_title: Tobacco IRC § 5701
section_title: Machine Guns, Destructive Devices, and Certain Other Firearms IRC §§ 5801, 5811