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31 Cards in this Set
- Front
- Back
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Elasticity
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Fees and taxes affect total sales. Reduce sales and result in a reduction of use.
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Inelastic
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Where the demand does not respond to the price (Tobacco). There is doubt if the tax discourgaes useage becasue they are addictive. Tax is regressive.
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Tax Base
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That which is to be taxed. Total sources of revenue. It includes sales tax, property tax, income tax. Also relates to corporate taxes.
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Regressive Tax
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Lower income tax payers experience higher effective tax rates than high income taxpayers.
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Progressive Tax
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Tax is higher for higher income taxpayers. Luxury cars
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Proportional Tax
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Tax rates are the same for every tax payer
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Nexus
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Tax based on form of physcial presence. Connection between what was paid and benifit received. Nexus Doctrine
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Excise Taxes
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Taxes applied to various prodducts; tabacco, transportation fuels, telephone service. 3 types: luxury, sumptuary, benifit based.
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Tax Expenditures
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Revenue that goes uncollected; tax credit for equipment purchased. It is considered a revenue loss.
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Tax Equity
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1st principal – ability to pay tax (based on income or wealth). 2nd principal – Benefit Principal – there should be some relationship between the benefits received by the taxpayer and taxes paid.
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Tax Incidence
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Who pays it and why? Who carries the burden of corporate taxes? They pass on the tax to the buyer. e.g. Tax on Cigarettes
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Tax Credit
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Dollar for dollar reductions in taxes that are applied after all the preceding steps have been completed. Earned Income Tax Credit.
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Ad Valorem Taxes
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Percentage over base value. Taxes levied according to the value of the purchase. Sales Tax. Opposite of unit tax.
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Unit Tax
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A Tax paid per unit.
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Types of Budgets
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Operating -Day to day operation
Capital - Major new construction Special Funds - Special Programs |
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Franchise Tax
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Fee paid by buisnesses for using a public resource. e.g. Gas Co for running gas under city streets.
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AMT (alternative minimum tax)
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Federal income tax - intent was to collect taxes from wealthy individuals who might be able to shelter that income from regular income tax system.
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Indexing
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adjusting income taxes in accordance with changes in price levels.
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Tax exempt properties
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Non-profits, churches, YMCA, non profit hospitals.
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Propery tax rate
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A percentage of assed value.
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Luxury Tax
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Items taxed that are "uniquely or predominately consumed by the rich". e.g. boats, cars, airplanes, furs, jewlery.
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Sumptuary Excise Tax (Sin Tax)
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Regulatory in nature. Taxes on alcohol and tabacco have been justified in deterring people froom consumption.
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Benifit Based Excise Tax
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Tax on gas, diesel, airline tickets. Tax is levied on individuals who cause particular service to be provided; proceeds from tax should finance that service.
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User charges - User Tax
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Fee to use a park, police; fingerprinint, local tennis court, swimming pool.
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Revenue Estimating
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Involves deterministic models - Property tax forecasts
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Econometric Models
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Most popular is multiple regression. Independent variables are sought that can serve as predictors of revenue yield.
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General Sales Tax
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Largest single revenue source for the state of California. Excludes food and prescription drugs.
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Budget
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used as a planning and control tool.
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Types of Budgets
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Program
Performance Zero Based Planning Programming budgeting Detalied or line item - incremental Base, Fixed, Open Ended |
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Debt Service
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Long term payment of principal and interest on borrowed funds. Fund: used to account for the accumulation of resources and payment of long term debt. Funds have to legally be saved.
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Unfunded mandates
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A program forced upon a lower government by a higher government without funding.
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