A tax on products not considered essential, such as expensive cars.
Luxury tax is a form of excise tax collected on the sale of certain high-priced consumer goods such as luxury automobiles, yachts, and other items. See Publication 510 for reporting instructions and information on taxable items.
A kind of tax paid on luxurious and pricey products and services, which are not deemed by the government to be essentials.
a modified salary cap, so they have given in on that
a system by which those teams unable to generate enough revenue for themselves receive revenue from teams that can
a tax on products not considered essential (i
A tax paid on expensive goods and services considered by the government to be nonessential.
Federal excise tariff assessed up-front on the sale of new passenger vehicles with a selling price exceeding $38,000. Luxury taxes are calculated as 5% of the portion of the selling price which exceeds $38,000.
A luxury tax in the sports sense is a surcharge put on the aggregate payroll of a team to the extent to which it exceeds a predetermined guideline level set by the league. The ostensible purpose of this "tax" is to prevent teams in major markets with high incomes from signing almost all of the more talented players and hence destroying the competitive balance necessary for a sport to maintain fan interest. The money derived from the "tax" is then divided among the teams that play in the smaller markets, presumably to allow them to have more revenue to devote toward the contracts of high-quality players.
For the special case of the term "luxury tax" applied to the salaries of athletes, see Luxury tax (sports)
