tax base


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Related to tax base: tax rate, Tax burden

Tax base

The assessed value of the taxable property, assets, and income within a specific geographic area.

Tax Base

The value of all assets that a government may tax. The tax base may increase for a number of reasons, particularly with the creation of wealth or when persons with high income move to an area. The tax base is particularly important to local governments because persons with large amounts of assets can move in and out with relative ease. The tax base is also the reason that government revenues tend to increase during economic growth and shrink during recessions.

tax base

The resources that are available for taxation. An evaluation of the tax base is of particular importance in certain municipal bond issues secured by tax revenues.

tax base

the total pool that the tax authorities can tap in levying a TAX. For example, the tax base for INCOME TAX is total taxable income and the tax base for CORPORATION TAX is total taxable profits.

tax base

The assessed value of all the property within a taxing jurisdiction.Local governments are always extremely sensitive to the size of the tax base and the need to increase it,and will often offer incentives to developers who will increase the sales taxes in the area,increase the tax base through additional improved properties, or increase the tax base through redevelopment and increased property values.

References in periodicals archive ?
The DOR ruled (51) that a manufacturer is required to add back property taxes it had expensed and deducted for Federal income tax purposes, to compute its state adjusted gross income tax base.
Critics complain the claw back provision prevents property owners who win an assessment appeal from being granted any tax reduction because the area's tax base is not large enough.
No one, Justice Breyer said, claimed the different tax rates for foreign and domestic corporations offset these significant differences in their tax bases.
Such concerns include states attempting to use sales tax simplification legislation to expand the tax base or attempts to move existing sales and use tax provisions that do not comply with the Agreement into other areas of the tax code (in essence, "shifting complexity" to other taxes).
One example highlighting the importance of such an approach would be using consolidated accounts after the elimination of intercompany transactions as a common tax base.
A single tax rate is applied to individuals and businesses; investment income is not included in the tax base.
However, whether the MSBT must be added back in computing the state tax base continues to be an area of litigation.
The work group examining tax bases and exemptions researched the use of exemption certificates and recommended:
Howell Township's expanding tax base and strong fiscal management result in a healthy financial position.
The modified tax base is subject to apportionment, using a three-factor formula.
Recent developments have significantly modified the Michigan nexus standard that is used for determining whether a business has sufficient contacts with the State to be subject to the SBT, and whether an in-state taxpayer's tax base can be apportioned to another State (the so-called throwback issue).
The underlying 'AA-' rating reflects the district's strong tax base growth, sound management practices, and historically healthy financial position.