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

The once-thriving city became the unwilling national symbol for urban decline and government neglect after it was devastated by the disappearance of the auto industry and an eroding tax base. Tyrone Beason, Los Angeles Times, "‘We’re old news, but we’re still living this’ — mistrust still flows in Flint," 30 July 2019 Town officials said that incorporation would protect land from being annexed, protect the community borders and the municipality's tax base. Cathy Kozlowicz, Milwaukee Journal Sentinel, "Lisbon officials want to incorporate the town as a village, but agree to discuss a cooperative plan with Sussex," 10 July 2019 Once known for its cotton industry, the community has been battered by de-industrialization, white flight and a shrinking tax base. Petra Cahill, NBC News, "Facebook unveils cryptocurrency 'Libra,' more U.S. troops to Middle East & Jon Stewart: The Morning Rundown," 18 June 2019 The Polk County assessor’s office had included in the tax base figures for the Bondurant-Farrar school district a fourth building at Facebook’s giant data center in Altoona. USA TODAY, "Disney surprise, foreign feral hogs, porous pavement: News from around our 50 states," 13 Sep. 2019 The law is intended to create jobs, expand the local tax base and grow the District economy. Washington Post, "Two D.C. Council members call for probe of sports betting contract," 30 Aug. 2019 And Bourbon County, with its 14,600 residents, faces the same dwindling tax base as most of rural America. NBC News, "After a rural hospital closes, delays in emergency care cost patients dearly," 19 Aug. 2019 The industry creates jobs and supports the tax base. Justin Worland / Des Moines, Time, "President Trump Says Wind Turbines Cause Cancer. 99% of Iowans Disagree," 12 Aug. 2019 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

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

15 Oct 2019

Look-up Popularity

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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