If you are opening a business or other entity that will have employees, will operate as a Corporation or Partnership, is required to file any of these tax returns: employment, excise, or Alcohol, Tobacco and Firearms or is a Trust, Estate or Non-profit organization you are required to obtain a Texas Tax ID (EIN).
Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. One of the major components of the excise program is motor fuel.
Excise Tax. An excise tax is an indirect tax, usually paid by the manufacturer or retailer of the product, then passed along in the price of the product to the consumer. For instance, goods such as cigarettes and alcohol are often taxed by the state or local authority, at a flat rate per item. This tax is added into the retail price, making it somewhat of a hidden tax, ultimately paid by the end user of the product. To explore this concept, consider the following excise tax definition.