Luxury Tax Law

Luxury tax law refers to a specific category of sales tax applied to high-cost items that are considered non-essential or luxury goods. This tax aims to generate additional revenue from consumers who can afford these items, such as expensive cars, jewelry, or designer clothing. The tax is typically imposed at a higher rate than general sales tax and targets products that exceed a certain price threshold. The intention behind luxury taxes is to promote equity in tax burdens and to discourage excessive consumption of luxury items.