Chapter 1: Taxes and Taxing Jurisdictions Flashcards
(20 cards)
tax
payment to support the cost of goverment
incidence
ultimate economic burden represented by the tax
tax base
an item, occurrence, transaction, or activity with respect to which a tax is levied
flat rate
a single percentage that applies to entire tax base
graduated rate
multiple percentages that apply to specified portions (brackets) of the tax base
activity based
tax imposed on the cumulative result of an ongoing activity
income tax
tax imposed on the periodic inflow of wealth resulting from a person’s economic activities
earmarked
taxes financing designated projects
ad valorem taxes
real property taxes and personal property taxes
realty
land and whatever is erected or growing on the land or permanently affixed to it;
encompasses subsurface featuress
abatements
temporary tax exemptions
personalty
any asset that is not realty; household tangibles, taxable business tangibles, intangible assets
use tax
tax for goods owner did not pay the state’s sales tax when the goods were purchased;
complementary of sales tax
excise tax
retail sale of specific goods or specific services;
may be imposed additionally to general sales tax or substitute general sales tax
transfer taxes
based on the value of an individual’s wealth transferred by gift or death
Marketplace Fairness Act of 2013
allow states to require catalog and online retailers to collect sales tax based on the residence of the purchaser.
Internal Revenue Code of 1986
federal tax law/statutory rules enacted by Congress;
pass legislation to add, delete, or modify provisions at least once a year
Treasury regulations
interpret & illustrate the rules contained in the Internal Revenue Code;
carries great authority but not laws in and of themselves
revenue ruling
how IRS applies the tax law to a particular set of facts
revenue procedure
advises taxpayers how to comply with IRS procedural or administrative matters
