Luxury taxes are taxes imposed on goods or services deemed to be 'luxuries' which are usually beyond the financial reach of most consumers. Generally, the goods and services subject to the luxury tax are non-essential items or those purchased by the very wealthy. Luxury taxes are distinct from sales taxes and VAT as they are only applied to certain goods or services, whereas other 'regular' taxes are usually levied on all goods and services.

The most common type of luxury tax is the mansion tax. This tax is imposed on the transfer or sale of high-end real estate or other large pricier assets, such as art and antiques. Generally, the mansion tax is levied on homes and other expensive property that is beyond the reach of most typical buyers.

In addition to the mansion tax, sin taxes are also included in the category of luxury taxes. These taxes are generally imposed on so-called 'sinful' activities, such as drinking and smoking. Sin taxes aim to discourage people from partaking in these activities, which are considered to be potentially dangerous or unhealthy.

Luxury taxes are generally intended to be taxes on the wealthy. By targeting goods that are affordable only to the wealthy, the revenue generated by luxury taxes can help to fund public services and programmes. However, some argue that the imposition of luxurious taxes may be unfair as those who are already wealthy are the only ones paying the taxes, which can significantly reduce their disposable incomes and have a disproportionate effect on spending overall.

In some jurisdictions, luxury taxes are also imposed on luxury cars, luxury boats, and other higher-priced items. The purpose of the taxes is to increase the cost of these items, making them more prohibitive for the average consumer. The revenue from these taxes can be used to fund public services and infrastructure.

In conclusion, luxury taxes are taxes imposed on specific goods and services deemed as 'luxuries' which are beyond the financial reach of most consumers. The most common types of luxury taxes are mansion taxes and sin taxes. These taxes are generally intended to be taxes on the wealthy and the revenue generated can be used to fund public services and infrastructure. However, it remains a controversial form of taxation, with some arguing that it can be disproportionately affecting those with disposable incomes.