Tax Glossary

Amounts subtracted from adjusted gross income to yield the taxable income upon which income tax liability is based.

Postponement of paying taxes because of specific provisions in the tax law. For example, the Senior Citizens Property Tax Postponement Program allows low and moderate income senior citizens to defer payment of property taxes until they sell their home, die, or move.

The DOF serves as the financial branch of the Governor' s administration. The DOF prepares the Governor's proposed budget and publishes other
budget documents, provides formal revenue estimates, and expresses the Governor's position on fiscal matters before the Legislature.

In income tax law, a relative of the taxpayer (child, stepchild, parent, stepparent, sibling, etc.) for whom the taxpayer provided over half of his or her support during a calendar year. Can also include a non-relative who meets the support rule and who lives in the taxpayer's home.

Deductions permitted to owners or certain lessees of natural resources ( such as oil or gas wells or timber property) to recover the costs of the resource as it is extracted, harvested or otherwise wasted or diminished. Comparable to depreciation for real or personal property or amortization of intangibles.

A decrease in the value of a capital asset due to wear, use, action of the elements, inadequacy, accident, or obsolescence. An income tax deduction for depreciation allows a write-off for a capital expenditure that roughly coincides with the decrease in value of the asset over time.

Generic term for a tax that is not easily shifted or passed on to some other entity by the entity on whom it is levied; for example, the personal income
tax.

Department of Motor Vehicles

Department of Finance