purchase tax

American  

noun

British.

1. a sales tax on nonessential and luxury goods.

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purchase tax British  

noun

1. a tax levied on nonessential consumer goods and added to selling prices by retailers

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Etymology

Origin of purchase tax

First recorded in 1935–40

Example Sentences

The $7,500 federal purchase tax credit expired at the end of September.

From Barron's

Losing the $7,500 federal purchase tax credit at the end of September has hurt.

From Barron's

Lower prices are designed to boost volume, something important for EV makers who lost the $7,500 federal EV purchase tax credit in September.

From Barron's

Those vehicles are supposed to boost Rivian’s shipments to about 65,000 vehicles in 2026, up from 42,000 in 2025, even though the loss of the $7,500 federal EV purchase tax credit, which expired in September, made EVs less affordable.

From Barron's

U.S. all-electric sales are expected to decline in 2026 to about 5% of 2026 new car sales after the September expiration of the $7,500 federal EV purchase tax credit.

From Barron's