There are also a wide variety of taxes levied at the manufacturer's
or distributor's level and not at the retail level. It should be noted,
however, that the circumstances surrounding the levying and collection
of taxes must be carefully considered. The facts concerning the levying
and collection of Federal excise taxes on alcoholic beverages and
tobacco reflect that such taxes are upon the manufacture of these
products and that they are neither levied nor collected at the retail
level and thus are not excludable. However, in some cases the
circumstances may reflect that despite the fact that such taxes may be
levied upon the manufacturer or distributor, nevertheless they may be,
in practical operation, taxes at the retail level and may be so regarded
for the purpose of this provision.
