Tax Glossary

The individual or business firm with the legal liability to initially pay a tax, whether or not it actually bears the final burden. (See also 'Incidence'.

Tax levied in place of another tax or group of taxes. May refer to provisions sheltering a class of taxpayers from other taxes. For example, the Constitution provides that the California on insurers tax is imposed in-lieu of other state taxes on insurers and their property.

Individuals or groups that bear the actual burden of a tax.

Money or other consideration received during a given period by an individual, corporation, or other entity for labor or services or from property, investments, or other form of compensation.

A tax levied on the income of individuals and/or corporations; may be applied to gross (total) income or net income (gross income less deductions for certain expenses).

For local property tax allocation purposes, the amount of property tax revenue generated by growth in assessed valuation from one year to the next. (See also 'Base' for another usage, see 'Tax Increment Financing'.)

Method by which tax rates, brackets, exemptions or benefits are automatically adjusted for inflation.

An increase in the price level or, conversely, a decline in the purchasing power of money.

Generic term for a tax levied upon the value of property that individual beneficiaries receive from an estate of a deceased person. The voters of California repealed the State Inheritance Tax in June 1982. (See also 'Pickup Tax' and 'Estate Tax'.)

Assets that cannot be perceived by the senses, such as the goodwill of a business, customer base, or the workforce of a business.

Changes in the liability associated with one tax that affect the liability associated with another tax (e.g., a reduction in property taxes will likely increase income taxes, because itemized deductions for property taxes will be reduced).

Individual Retirement Account

Internal Revenue Code

Internal Revenue Service