luxury tax

noun

1. a tax on certain goods or services not considered essential and usually relatively high in price.

Word History and Origins

Origin of luxury tax¹

First recorded in 1900–05

Example Sentences

Including their expected luxury tax bill this winter, Dodgers owner Mark Walter—fresh off his purchase of the Los Angeles Lakers—and his partners will pay roughly a half-billion dollars.

Read more on The Wall Street Journal

Including their estimated luxury tax bill, the Dodgers’ current squad will ultimately cost more than $500 million.

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The Dodgers will spend half a billion dollars on player payroll and luxury tax payments this year, a figure that the Brewers and other small-market teams might never spend in this lifetime, or the next one.

Read more on Los Angeles Times

They spent more than $350 million to build their roster, not counting the enormous luxury tax bill that will increase their overall expenditures to over a half-billion dollars.

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Teams that exceed the cap must pay luxury tax penalties that grow increasingly severe.

Read more on Los Angeles Times