Excise is a tax on the manufacture, sale, or use of goods or services levied by local, state, or national governments. It is usually levied on one or a few products. But the taxed party usually adds the amount of the tax to the price of the goods or services, making the buyer the real taxpayer. Many cities and states place a general tax called a sales tax on the sale of all products (see Sales tax). Excise taxes also include fees paid for business licenses. Most excise tax revenue comes from the sale of tobacco, alcohol, and gasoline.
