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How to excise equation contract

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hi this is matt davies and what were going to talk about today is a little more closing statement math um were going to calculating excise tax and so the first step step-by-step instructions on how to do this would be to take the sales price and divide by 500 and then round up fairly simple uh simple steps here so for example sean seller listed his home for 350 000 and signed a contract for 344.9 how much excise tax will the buyer pay and before you start doing your calculations how much will the buyer pay zero because the buyer does not pay excise tax so somewhat of a trick question and the thing that we want to remember is read the question read the darn problem so remember that read the darn problem and that what is the question that we have to answer how much the buyer will pay well lets flip it now and say what the seller will pay so we dont lose this so weve listed it for 350 the way we calculate is on the sales price so were going to take the 3449 divide that by 500 and y

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What is an example of an excise tax?

What is an example of excise tax? The federal gas tax is an excise tax. The US federal government charges 18.4 per gallon of gasoline and 24.4 per gallon for diesel fuel. These excise taxes stay the same regardless of other price inputs and are baked into the advertised price.

How much is excise tax in NC?

When ownership in North Carolina real estate is transferred, an excise tax of $1 per $500 is levied on the value of the property. For example, a $600 transfer tax would be imposed on the sale of a $300,000 home. Transfer taxes in North Carolina are typically paid by the seller.

How do you calculate excise tax?

Specific Tax = No. of Units/other measurements x Specific Tax Rate. Ad Valorem Tax = No. of Units/other measurements x Selling Price of any specific value per unit x Ad Valorem Tax Rate.

What happens to supply and demand when there is a tax?

The effect of the tax on the supply-demand equilibrium is to shift the quantity toward a point where the before-tax demand minus the before-tax supply is the amount of the tax. A tax increases the price a buyer pays by less than the tax. Similarly, the price the seller obtains falls, but by less than the tax.

How do you calculate excise tax supply and demand?

Excise Tax Formula and Calculation The equilibrium price (P) becomes two new prices to be balanced: the price that consumers will pay (Pc) and the price that producers will see (Pp). The price producers will see will equal the price consumers pay reduced by the amount of excise tax (t), such that Pp = Pc - t.

What is demand and supply theory of tax shifting?

If the demand for the commodity taxed is elastic, the tax will tend to be shifted to the producer but in case of inelastic demand, it will be largely borne by the consumer. In case of elastic supply, the burden will tend to be on the purchaser and in the case of inelastic supply on the producer.

How is NC excise tax calculated?

How do I calculate the excise tax on a property? The current North Carolina excise tax stamps are $1.00 per $500.00 or fractional part of the value of the property conveyed. For deeds recorded prior to August 1991, the excise tax was $1.00 per thousand.

What is excise income statement?

An excise tax is a legislated tax on specific goods or services at the time they are purchased. Goods subject to excise taxes could be fuel, tobacco, and alcohol, among others. Excise taxes are intranational taxes imposed within a government infrastructure rather than international taxes imposed across country borders.

What is the formula for tax elasticity?

II. Tax elasticity is defined as TE = %LJRevenue + %LJbase. This looks just like tax buoyancy, but there is a crucial difference, which is that revenue is calculated as it would have been if there had not been any change in the tax laws, including the tax rates or bases.

Does NC have excise tax?

The North Carolina excise tax on gasoline is 37.50 per gallon, one of the highest gas taxes in the country. North Carolinas excise tax on gasoline is ranked #6 out of the 50 states.

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