Legal Definitions - tax levy

Tax Levy

A tax levy refers to the official act by a government or authorized public body of imposing a tax, or the process of collecting that tax. It can also refer to the specific amount of tax that has been officially imposed and is due.

• Example 1: Imposing a New Tax

  A local school board, after a public vote, decides to increase the property tax rate by a certain percentage to fund the construction of a new high school. This official decision and the subsequent declaration of the new tax rate constitute a tax levy.

  Explanation: Here, the school board is performing the act of officially imposing a new tax, which is a direct application of the term "tax levy."

• Example 2: Collecting an Existing Tax

  The national customs agency sends out notices to importers, demanding payment of import duties on goods brought into the country. The agency's action of enforcing the payment and collecting these duties is a tax levy.

  Explanation: In this scenario, the customs agency is actively engaged in the process of collecting an existing tax, illustrating the "collection" aspect of a "tax levy."

• Example 3: The Amount of Tax Due

  After reviewing a small business's annual financial statements, the municipal tax office calculates that the business owes $5,000 in local business taxes for the year. This specific calculated sum of $5,000 that the business is legally obligated to pay is the tax levy for that period.

  Explanation: This example demonstrates how "tax levy" can refer to the precise amount of tax that has been officially imposed and is now due from a taxpayer.