Tax Glossary

Revenue designated by statute or the Constitution for a specific and restricted purpose.

Includes wages, salaries, and fees for services rendered. In most cases, does not include distribution of profits, such as dividends, or earnings on an investment, such as interest.

Employment Development Department

The funds created to receive property tax revenues redirected from cities, counties, and special districts to schools and community college districts. The permanent redirection of property taxes reduces the state's Proposition 98 funding obligation to K-14 school districts. The revenue loss to local governments is mitigated by receipt of a half-cent sales tax for public safety purposes.

Percentage of market value, income, or other tax base that the tax liability represents. Often differs from the nominal tax rate due to progressive tax
rates.

As applied to taxes, the degree to which growth in revenue from a tax corresponds to changes in income.

State agency that administers unemployment insurance and disability taxes and personal income tax withholding.

Fairness or justice. It also refers to the value of property minus the liens and other claims against the property that offset its value. If the claims against a property exceeds its value, this is described as "negative equity".

Generic term for a levy on the right to transfer property upon the death of the owner. Once the value of the estate is determined, a tax rate is applied to this base.

Generic term for a levy on the manufacture, sale, or use of a particular commodity or service, for example, liquor, cigarettes, or telephone services.
Excise taxes are levied on a per-unit basis (e.g., per gallon, per pack, per minute).

The part of a tax base that is excluded by law when computing the tax. For example, Social Security income is an exclusion for state income tax purposes.

Status of specified people, property, institutions, or sources of income or wealth not subject to taxation.