Tax Glossary

Material assets such as household goods or business equipment that are readily movable and are not permanently attached to real property.

A compulsory payment required by a government.

The part of the economy or the portion of the population against which a tax is levied or measured.

The impact of a tax, usually expressed in tax dollars per capita or dollars per amount of personal income. For an individual taxpayer, tax dollars per measure of income (household, AGI, other).

Property on which property taxes are delinquent and which has been deeded to the state until the time it is sold for back taxes or redeemed by the owner.

A component of the tax law that deviates from the basic structure of the tax (e.g., an exemption, exclusion, deduction, credit, and/or deferral). The term "tax expenditure" is intended to reflect foregone revenues resulting from the preferential treatment.

A method used by redevelopment agencies to secure bonds, whereby property tax revenue from an increase in value in property over a base amount is used to pay off the bonds.

A bill in the California Legislature that imposes a state tax, repeals a state tax, or otherwise changes in any material way the rate, base, or burden of a state tax. The Legislative Counsel determines whether a bill is a tax levy. Special rules regarding legislative deadlines and effective dates apply to tax levies.

The ratio of the tax to the tax base. For property tax purposes, the rate is applied to assessed value to determine the amount of the tax. For income and franchise tax purposes, the rate is applied to taxable income to determine the amount of the tax.

Geographic area that is served by the same combination of governmental units and has the same property tax allocation factors.

Taxable Income

Revenues earned by the state from sale of oil extracted from state tidelands (between shoreline and three miles out into the Pacific Ocean). Primarily located adjacent to the city of Long Beach.

A tax imposed in California in lieu of the property tax on standing timber. Tax applies when timber is harvested and is based on the value of the timber when cut.

Ten-year land use restriction on growing and harvesting timber in exchange for preferential property tax assessments for timberland.

Timberland Production Zone