Tax Glossary IGTax
There are currently 11 names in this directory beginning with the letter B.
B
BASE
For property tax allocation purposes, the amount of property tax revenues received in the prior year (See also 'Increment'.) (For a different usage, see 'Tax Base'.)
BASE YEAR VALUE
The full cash value of real property in 1975-76, or in any subsequent year upon a purchase, change in ownership, or new construction. Under Proposition 13, assessed value for property tax purposes may increase by no more than 2% per year.
BASIS
For purposes of income taxes, basis generally means the cost of an asset to the taxpayer acquiring the property. It is used for calculating depreciation and capital gains and losses when the property is ultimately disposed of. Most inherited property is given a basis of its fair market value on the date of inheritance. Property acquired by gift generally has a basis equal to that of the donor.
BENEFITS RECEIVED
Tax principle that those who receive the benefit of government services should pay for them. Alternative to "ability-to-pay".
BOARD OF EQUALIZATION (BOE)
State revenue agency, responsible for administration of the sales and use tax and other special taxes. The BOE also oversees local administration of the property tax. The Board is directed by five members: The State Controller and four members elected by the voters. The BOE is a quasi-judicial body and serves as the appellate body for income and franchise tax disputes filed with the Franchise Tax Board.
BRADLEY-BURNS
The 1955 act that allows a uniform 1.25% sales tax to be imposed by cities and counties. This tax is collected by the BOE and returned to local jurisdictions based on the location of the taxed transaction.
BROAD-BASED TAX
A tax levied upon a large tax base. Often such a tax is paid by the vast majority of the population. An example is the sales and use tax.