Tax Glossary

Closely held corporations (i.e., they have a limited number of shareholders) that receive special tax treatment under both federal and state law.

They are named after a specific section of federal tax law (Subchapter S of Subtitle A of the Internal Revenue Code).

A tax levied on the gross receipts from the retail sale of tangible personal property unless otherwise exempted.

State Disability Insurance

That part of the local property tax assessment roll that contains real property where the taxes are adequately secured by a lien.

Generic term for a tax imposed on the extraction of natural resources, usually based on volume or value of a resource extracted or harvested. SIMILAR TO YIELD TAX.

Site or place. Applies to the location of property for the purpose of determining which government agency may impose taxes on it and which government agency receives tax revenue from it.

A tax for local improvements imposed only on the properties benefited.

Term used in Proposition 13 and further defined in Proposition 218. Special taxes are those imposed and restricted for specific, rather than general, governmental purposes. Local agencies may impose special taxes upon approval of two-thirds of those voting on the measure.

Benefits enjoyed by those not directly paying for them.

In the context of property taxes, means assessment or taxation of a certain class of property in a manner different than other property. Could refer to a split assessment ratio, a split tax rate, or a split exemption level. Does not currently apply in California.

A flat amount that all income taxpayers are allowed to deduct in lieu of claiming itemized deductions. Intended to approximate expenses that reduce the taxpayer's ability to pay. A feature of federal income tax law; California uses a personal credit.

Property that crosses jurisdictional boundaries and is assessed by the Board of Equalization, rather than local county assessors. State assessees are primarily utilities and railroads.

Costs incurred by local agencies or schools resulting from a new program, or higher level of service for an existing program, mandated by state legislation or an executive order. Under Proposition 4 (Article XIIIB), the state is required to reimburse local agencies for these costs, with specified exceptions.

Money transferred from the state to local government.

An additional assessment roll that contains property that changes ownership or is newly constructed after the regular January 1 lien date. Enacted in 1982.

Commonly refers to the carryover balance in the state's General Fund at the start of a new fiscal year, or to reserves held by the state for unforeseen contingencies. Also known as the Special Fund for Economic Uncertainties.

An additional tax rate added onto the rate of an existing tax.