Investor Glossary-luxury taxInvestor Glossary-luxury taxInvestor Glossary-luxury taxInvestor Glossary-luxury taxInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Luxury Tax

The HTML to link to this page
 

A luxury tax is a tax on luxury goods. The luxury tax can be levied on any luxury item, with boats and cars being common targets. In the US, Congress established a luxury tax called the luxury auto excise tax in 1990. This luxury tax was levied on certain passenger vehicles priced above a certain threshold. That luxury tax was phased out in 2003. A luxury is a tax of a progressive nature, since only those with the means to afford the luxury item pay the luxury tax. If a luxury tax is not indexed to inflation it will eventually affect many more people than originally intended. For example, the New York State Additional Real Estate Transfer Tax, also known as the "Mansion Tax", is a luxury tax paid by the buyer on transfer of any 1, to 3 family home or cooperative or condominium apartment priced above $1,000,000. In New York City, many two-bedroom apartments now cost this much. While a two-bedroom apartment may not be a mansion, thus luxury tax still applies.



Rate this luxury tax definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, EBITDA, average price per share, current ratio, FTSE, 1035 exchange, LIBOR, annual return, deferred revenue, option premium, 401a, command economy, open position, real GDP, implied volatility, in escrow, quality assurance, cancelled check, dividends payable, covered put, stock split, 1031 exchange, class C shares, required rate of return, ex-dividend, limit order, risk management, Zero Cost Collar, reverse mortgage, minority interest, VIX, deferred tax, Key Rate Duration, margin rate, wholly-owned subsidiary, APR, 144a, diluted share, stock market close, FICO score, ex-dividend date, phantom income, per diem, debt service coverage, balance sheet, retained earnings, irrevocable trust, labor relations, liquidity ratio


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use