State Sales Taxes, Section 90, and The Interpretation of 'excise'
As a result of the loss of income taxing powers, states turned to other taxation powers such as sales taxes. As 'excise' taxes are an exclusive Commonwealth power in section 90 of the constitution, the interpretation of excise became a critical issue.
The High Court has interpreted 'excise' to mean any tax imposed up to and including the point of sale. The result of this interpretation is to prevent state sales taxes. In Ha v New South Wales (1997) state excise and franchise tax regimes were struck down as an excise.
Read more about this topic: Constitutional Basis Of Taxation In Australia, Vertical Fiscal Imbalance: The Redundancy of State Taxing Power
Famous quotes containing the words state, sales and/or section:
“While the State exists there can be no freedom; when there is freedom there will be no State.”
—Vladimir Ilyich Lenin (18701924)
“The elephant, not only the largest but the most intelligent of animals, provides us with an excellent example. It is faithful and tenderly loving to the female of its choice, mating only every third year and then for no more than five days, and so secretly as never to be seen, until, on the sixth day, it appears and goes at once to wash its whole body in the river, unwilling to return to the herd until thus purified. Such good and modest habits are an example to husband and wife.”
—St. Francis De Sales (15671622)
“Personally I think were over-specialized. Why its getting so we have experts who concentrate only on the lower section of a specimens left ear.”
—Martin Berkeley, and Jack Arnold. Prof. Clete Ferguson (John Agar)