Tax Glossary

Refers to a boilerplate statement, commonly at the end of a bill, that "waives" another statutory requirement, such as an automatic sunset or reimbursement of any state mandated costs created by that bill. If their rights to reimbursement are not waived, local governments may file claims for reimbursement of state-mandated costs and/or state-initiated revenue losses via Board of Control.

Method of combining the income of multinational corporations to determine the amount of net income taxable by California. The "water's-edge" is defined as the 50 states of the United States and specified "tax havens". This method is an alternative to worldwide combination.

Property tax exemption available for property owned by nonprofit charitable, educational, religious, and scientific organizations and that meets other tests.

Statutory provision for reduced property tax assessments on agricultural and other open space property in return for a contractual agreement that the property must be maintained in agricultural use for at least 10 years.

Method of combining the income of multinational corporations to determine the amount of net income taxable by California. Corporations must use worldwide combination if they do not elect water'sedge combination.