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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.
Lopez was unimpressed. Pima County could impose a limited excise (sales) tax to generate any revenues required, he said. Alternately, Lopez said, the county could take advantage of a provision in the law which allows it to escape the extra obligation if it reduces its tax rate.