how to solve sales and excise taxes
As a result, expanding the sales tax base to include business inputs will usually hurt low-income taxpayers. How Excise Taxes Work Excise taxes are sales taxes that apply to particular products. Comparedto income, property, and general sales taxes, excise taxes constitute afairly small portion of state revenues.
Every state with a sales tax also has a use tax, which applies to items that are bought outside a state for use within a state. Th e use tax is designed to prevent state residents from avoiding the sales tax by purchasing goods over the phone, through catalogs, or on the Internet.