• real property (eg, property tax);
• wage income (eg income tax);
• the sale of goods (eg, sales taxes); and/or
• the purchase of goods (eg, sales taxes).
- AD VALOREM TAX
- see VALUE ADDED TAX
- CAPITAL GAINS TAX
- see capital [CAPITAL ASSETS]; capital gains/losses.
- ESTATE TAX
- taxes that the state imposes upon the net value of a decedent’s estate. The same tax result is accomplished – in some jurisdictions – through imposition of a TRANSFER TAX (which is a tax upon the transfer of the property [from the estate to the beneficiary]).
- ESTIMATED TAX
- periodic income taxes that a taxpayer pays – on income that is not subject to withholding taxes – in an amount that represents a projection of ultimate tax liability (for the taxable period). Withholding taxes is an example of this.
- EXCISE TAX
- see excise
- FRANCHISE TAX
-
a tax generally imposed by the states upon corporations. It is often divided into two components:
(1) a tax upon the net income of the corporation (attributable to activities within the state); and (2) the tax on the net worth of the corporation located in the state EXAMPLE:
a state imposes a tax on “the privilege of doing business” in the state. As long as the tax is only imposed on the income that the corporation earns in the state (or on the value) of the corporation’s assets in the state, the tax is a valid franchise tax on the corporation.
- INCOME TAX
- a tax imposed upon value received by the taxpayer – reduced by the allowable deductions and credits.
See return, income tax. - POLL TAX
- see poll tax
- PROGRESSIVE TAX
- a tax whose rate increases as the taxable amount increases
- PROPERTY TAX
- a tax that municipalities impose on the property owners (that are domiciled within the municipalities’ jurisdiction). The tax is based on the assessed value of such property.
- REGRESSIVE TAX
-
a tax whose rate either:
(i) remains the same regardless of the taxable amounts, or
(ii) decreases as the taxable amount increases - SALES TAX
- a tax imposed on the retail sale of certain items
- UNIFIED ESTATE AND GIFT TAX
-
a federal tax imposed upon:
(a) the net value of an estate; and Usually, the transferor is liable for gift taxes. However, if the transferor fails to pay, then the transferee may be held liable for payment.
(b) gifts of certain amounts. - USE TAX
-
a tax imposed upon property when it is brought into the taxing jurisdiction, usually because the taxing jurisdiction has no jurisdiction over the sale and therefore cannot impose a sales tax
EXAMPLE:
a state requires a bus company to obtain certificates of title to operate their buses in that state. The certificates will not be issued until a tax is paid, based on the fair market value of the buses. The tax is permitted as a use tax to offset the cost of maintaining the state highways.
- VALUE ADDED TAX [AD VALOREM TAX]
- a tax imposed upon the difference between (a) the cost of an asset [to the taxpayer]; and (b) the present fair market value of such asset
- WITHHOLDING TAX
- the amount of income taxes that an employer is required to withhold from an employee’s salary – when the salary is paid. The amount withheld is a credit against the amount of income taxes the employee must pay on his/her realized income.
