Fiscal Years 1992-2006.pdf

109 50 55 60 65 70 75 80 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Billions of dollars Total Excise Tax Collections, Fiscal Years 1996-2006 Fiscal year What’s New in Federal Excise Taxation, Fiscal Years 1992-2006 by Melissa Laine Melissa Laine is an economist with the Special Studies Sta- tistical Data Section. This article was prepared under the direction of Martha Eller Gangi, Chief. 1 IRS, Statistics of Income Bulletin, Fall 1997-Winter 2000-2001, Table 20. 2 IRS, Statistics of Income Bulletin, Spring 2001-Spring 2007, Table 21. 3 U.S. Department of the Treasury, Financial Management Service, Monthly Treasury Statement of Receipts and Outlays of the United States Government, FY 2003-2006. 4 CCH Incorporated, U.S. Master Excise Tax Guide, 5th Edition, 2005. F ederal receipts from excise taxation reached a level of $76.1 billion for Fiscal Year (FY) 2006 (Figure A). The FY 2006 receipts rep- resented a 1.2-percent increase from FY 2005 and a 35.9-percent increase since FY 1996.1,2 Excise taxes accounted for 3 percent of total receipts for the U.S. Government in FY 2006.3 This article will explore some of the changes in tax law that occurred between FY 1993 and 2006 in the areas of retail and manufac- turers’ excise taxes. An excise tax is a tax paid on the purchase of a particular good or the occurrence of a particular event. Excise taxes may be broken out into broad categories such as: retail excise taxes, manufacturing excise taxes, taxes on facilities and services, envi- ronmental excise taxes, taxes on private foundations, and others. Retail excise taxes are imposed when purchases are made of a certain good by the con- sumer or seller of the good. An example of a retail excise tax is tax paid on compressed natural gas and dyed diesel fuel used in trains. Manufacturing excise taxes, imposed on manufacturers, producers, or im- porters of taxable products, include taxes paid on gas guzzlers, which are vehicles that do not m