What is exercise tax?

First, the term is "excise tax". As many tax terms, it can be defined or used by many in different ways. Generally, it is a tax, imposed by the Feds or a State or other jurisdiction on the manufacture (or sometimes import or use) of a product,. Generally to a class of an item, and generally again, because of a relevant connection between the item and what the tax funds...or finally it can be used to balance trade and costs in an international setting. So, vehicle tires are subject to an excise tax - by the Dept. of Transportation, to help fund the roads and infrastructure they use. Many States now impose an excise tax on products that take an especially heavy toll on the environment and disposal system, as an environmental tax. Telephone services are subject to many, some for assuring equal access and to improve the infrastucture again. Etc. In some cases the manufacturer pays it as an operating cost and includes it in the price of his goods, in others it may be handled by the retailer and is stated on the bill.