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

Camden’s local tax base has increased from about $24 million in 2013 to $27 million in the fiscal year that ended June 30, according to city records. Kate King, WSJ, "The Power Broker Behind Camden, N.J.’s Upswing," 9 July 2018 Rolando Emmanuelli Jimenez, an attorney for Puerto Rico’s public utility union, said the proposal didn’t require enough sacrifice from Cofina bondholders given the territory’s shrinking tax base. Andrew Scurria, WSJ, "Puerto Rico’s $18 Billion Bond Restructuring Nears Completion," 19 Jan. 2019 Connecticut must broaden the tax base for revenue to be less concentrated on certain types of taxation, the governor said. Stephen Singer,, "Malloy Praises, But Stops Short Of Endorsing, Reform Report On State's Finances," 14 Mar. 2018 Devaluation of these assets further penalizes communities, since these businesses, for example, form the tax base that supports and funds local education and infrastructure. Patrick Sisson, Curbed, "Homes owned by black Americans undervalued by billions, says report," 27 Nov. 2018 Blair, 48, has run on a platform of attracting businesses and jobs to the county to increase the tax base. Jennifer Barrios, Washington Post, "Montgomery Democrat Nancy Floreen may launch independent run for county executive," 2 July 2018 Wayne Crenshaw Nixon's argument is that marijuana legalization is an issue not only of personal freedom and increasing the state's tax base, but one of social and racial justice. Matthew Martinez, miamiherald, "Legalizing marijuana is 'a form of reparations' for black people, Cynthia Nixon says | Miami Herald," 9 May 2018 Listed as credit challenges are the city's small, declining tax base; below-average, declining resident income levels; and limited future revenue-raising flexibility. Jeff Piorkowski/special To,, "Moody's upgrades Richmond Heights' credit rating due to increased financial stability," 27 Apr. 2018 Broadening the tax base is usually good policy if rates are lowered. The Editorial Board, WSJ, "California’s New Tax on Texting," 14 Dec. 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

19 Mar 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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