An excise tax is a tax imposed on the manufacture, sale, or use of goods—such as cigarettes, fuel, or alcohol—or on an occupation—such as a license tax or an attorney occupation tax—or on an activity such as gambling or betting.
Excise taxes may be ad valorem (calculated by percentage) or specific (calculated per unit).
In Florida, excise taxes are imposed on various goods and activities. For instance, the state levies a tax on cigarettes and tobacco products, which is a specific tax based on the quantity sold. Similarly, there are excise taxes on fuel, including gasoline and diesel, which are also specific taxes per gallon. Alcohol is subject to both state and federal excise taxes, with Florida imposing specific taxes that vary depending on the type of alcoholic beverage. Additionally, there are occupational license taxes, which may apply to certain businesses and professions, including attorneys. These taxes are typically a flat fee rather than ad valorem. Florida does not have a state income tax, which sometimes means that excise and other forms of taxes may be higher in comparison to states that do have an income tax. Gambling activities, including pari-mutuel betting, are also subject to excise taxes in Florida. The state's Department of Revenue administers these taxes and provides guidance on the rates and methods of calculation for each type of excise tax.
