Taxation

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Definition:

Taxation is a governmental assessment upon property value, transactions, estates of the deceased, licenses granting a right and/or income, and duties on imports from foreign countries. Tax Law is a complex system which encompasses the large body of laws governing taxation. It includes the payment of taxes to at least four different levels of government and many methods of taxation. Tax law is generated by the federal, state, as well as local government, which can include counties, cities, townships, districts, and other municipalities. It also includes regional entities such as school and utility, and transit districts. Tax law is extremely complicated and it changes every year. Its complexity and constant flux is generally due to two factors: the use of the tax code for purposes other than raising revenue, and the feedback process of amending the tax code.