tax base


Definition of tax base

: the wealth (such as real estate or income) within a jurisdiction that is liable to taxation

Examples of tax base in a Sentence

an area with a large tax base

Recent Examples on the Web

Sticking with the status quo will bring in additional tax dollars because of the county’s higher tax base, which increased by 7.3% this year to $22.1 billion. Jerry Fallstrom,, "Most Lake governments poised to reap dividends from growing tax base," 4 Sep. 2019 Moody’s pointed to the county's growing tax base, healthy financial position marked by reserve and liquidity levels and manageable debt burden. Paul Gattis |, al, "Madison County receives its highest-ever credit rating," 15 Aug. 2019 As part of efforts to grow the tax base, Nigeria launched a tax amnesty program in 2017 encouraging tax evaders and defaulters to pay up without facing penalties. Yomi Kazeem, Quartz Africa, "Nigeria wants to start charging a tax on local online purchases," 5 Aug. 2019 Citing stable finances and a healthy tax base, two bond rating houses have issued relatively optimistic credit ratings for Berlin. Don Stacom,, "Berlin gets boost in its credit rating," 16 July 2019 The estate tax simply does not raise a lot of revenue, thanks to its narrow tax base, already high tax rate, and significant economic costs. Rachel Greszler, National Review, "Taxing Inheritances Won’t Fix Social Security," 9 July 2019 District law requires companies with large public contracts to subcontract some work to small local businesses to create new jobs, expand the tax base and grow the local economy. Steve Thompson, Washington Post, "The little firm that got a big chunk of D.C.’s lottery and sports gambling contract has no employees.," 28 Aug. 2019 That triggers a directive to the Hamilton County auditor to certify how much money would be generated annually by the levy, based on the valuation of the school district’s tax base in Anderson Township and Newtown. Jeanne Houck,, "Forest Hills' fiscal stewardship under fire in school levy push," 26 June 2019 The village will look for ways to expand its tax base, create greater housing diversity, open space and recreational opportunities and develop its primary corridors. Michelle Mullins, Daily Southtown, "Homer Glen to seek resident input as it updates comprehensive plan originally adopted in 2005," 10 June 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'tax base.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of tax base

circa 1943, in the meaning defined above

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Last Updated

17 Sep 2019

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Time Traveler for tax base

The first known use of tax base was circa 1943

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More Definitions for tax base

tax base


Financial Definition of tax base

What It Is

A tax base is the total amount of assets or revenue that a government can tax.

How It Works

For example, let's assume that in Big Town there is $500,000,000 of commercial and residential real estate that is subject to property taxes. If the local school district gets all of its funding from those property taxes, then its tax base is $500,000,000.

Taxes can be based on any kind of asset or revenue stream. For example, to calculate the tax base for a sales tax, you may consider the total spending power of the adults in the community as the tax base. Revenue streams from a gas tax might consider total gas station revenue as the tax base.

Why It Matters

The size and growth (or lack of growth) of the tax base is crucial to the planning efforts of any local, state, or federal government. Because the size of the tax base influences the taxable revenues that are available to a government, there is a direct correlation between the economic condition of a city as a whole and the budget of the government that serves it. Accordingly, governments must always consider how their decisions will affect their tax base.

Source: Investing Answers

tax base


English Language Learners Definition of tax base

: the amount of money or property that can be taxed within an area

tax base


Legal Definition of tax base

1 : a sum (as the total assessed valuation of property in a county) used as the basis of taxation
2 : the source of tax revenue for a governmental body change the tax base of a school district to reduce the property tax burden

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to make a temporary encampment

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