It may also be applied only to purchases over a certain amount; for instance, some U.S. states charge luxury tax on real estate transactions over a certain limit.
to collect state sales-tax through the use of "luxury tax tokens", instead of calculating a percentage to be paid in cash like the modern-day practice.
[citation needed] A luxury tax of 10% on boats over $300,000 and aircraft over $1 million was proposed in 2010 by finance minister Simeon Djankov.
In Norway, at the beginning of the 20th century, oil-powered cars, sugar products, and chocolates were viewed as luxury goods.
[5] In November 1991, The United States Congress enacted a luxury tax and was signed by President George H. W. Bush.
Congress enacted a 10 percent luxury surcharge tax on boats over $100,000, cars over $30,000, aircraft over $250,000, and furs and jewelry over $10,000.