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

Town leaders said Millville needed the override to grow its tax base after years of patching the budget with one-time fixes and rising demands from the regional school system. Laura Crimaldi,, "Welcome to Millville, where budget fight means dark streets, no trash pickup, and a growing deficit," 11 July 2018 As noted by Kloczkowski, Amazon and other online sales alternatives have cut deeply into a space once ruled by brick and mortar, but Linehan said Gurnee remains in good shape due to its strong commercial tax base. Jim Newton, Lake County News-Sun, "Gurnee Mills outlot in 'highly important' location springs back to life," 2 July 2018 Many of the spans are in rural areas where the cost of repairing them could overwhelm the local tax base. Jennifer Smith, WSJ, "Truckers Aim for Last Mile, Closing Crumbling Infrastructure, Stockpiling Scrap.," 13 Apr. 2018 The city’s Economic Development Division works to increase wealth in the community by assisting in job creation and improving the tax base of Oceanside. Janelle Werthmann,, "Business notes for Thursday, April 5, 2018," 3 Apr. 2018 Primarily due to the resulting commercial tax base, the village has been able to operate without levying a property tax on its residents, Ross said. Jim Newton, Lake County News-Sun, "New plaza dedicated for late mayor who 'is reflected in every square inch of Gurnee'," 6 July 2018 Increased income leads to opportunities for purchasing, investing, and maintaining a strong economy and leads to a larger tax base in Massachusetts. Jason Lewis,, "Should the Legislature revive the push for a millionaires tax?," 5 July 2018 As a result, in many cases existing state taxes on personal and corporate income are applying to a broader tax base and yielding more money. Gerard Baker, WSJ, "The 10-Point.," 7 May 2018 The wealthy ruling class, political and religious aristocracy just used them as a tax base, as victims of their greed. Loren A. Yadon, idahostatesman, "In God’s sight, everyone matters | Idaho Statesman," 8 Apr. 2018

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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tax base

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Statistics for tax base

Last Updated

1 Oct 2018

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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

Comments on tax base

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