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going to learn how to calculate excise tax which is again just a sales tax charge to the seller for the most part excise tax for your purposes as a pre-licensing student on the pre-licensing exam its going to be a seller expense always a seller expense for exam purposes in real life out in the wild its actually a negotiable item in our standard contract that we use most of the time it is a seller expense but oftentimes in new construction the builder has had a contract created by their own attorneys and that has shifted it over to the buyers column but for our purposes again seller paid seller expense as youre being tested in this pre-licensing course excise tax is also based upon the purchase price just like any sales tax thats why i like to call it a sales tax just to remind you dont base it on the tax value base it on the purchase price so if theres a purchase price of one hundred and fifty three thousand three hundred dollars sale price of one fifty three three the formula f