A tax exemption is an exemption to the tax law of a state or nation in which part of the taxes that would normally be collected from an individual or an organization are instead foregone. An exemption is a rule or law which excepts certain things from another rule or law. ... A tax is a compulsory charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e. ... Law (from the Old Norse lagu) in politics and jurisprudence, is a set of rules or norms of conduct which mandate, proscribe or permit specified relationships among people and organizations, intended to provide methods for ensuring the impartial treatment of such people, and provide punishments of/for those who do...

Normally a tax exemption is provided to an individual or tax-exempt organization which falls within a protected class of some kind. Tax exemptions are usually meant to either reduce the tax burden from a particular segment of society in the interests of fairness or to promote some type of economic activity through reducing the tax burden on those organizations or individuals who are involved in that activity. A tax exemption is an exemption to the tax law of a state or nation in which part of the taxes that would normally be collected from an individual or an organization are instead foregone. ... ...     Economics (from the Greek οίκος [oikos], house, and νομος [nomos], rule, hence household management) is a social science that studies the production, distribution, trade and consumption of goods and services. ...

Typical tax exemption criteria used are age of the individual paying tax, public service which the individual has performed (war veterans), ownership of types of property (homeowners), geographic location of property, income level of the individual paying the tax, or the value of the property being taxed. Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. ... A veteran refers to a person who is experienced in a particular area, particularly referring to people in the armed forces. ...

In the United States the classic property tax exemption provided homeowners is the homestead exemption. There are many others such as exemptions on income tax (exemptions for dependents or people such as children who are financially dependent on the tax payer). // Property tax is an ad valorem tax that an owner of real estate or other property pays on the value of the thing taxed. ... A homestead is: A farm with the buildings around it, see homestead (buildings) Ones legal residence, see homestead (law) An area measure of 160 acres (650,000 m²), see homestead (area) and Homestead Act To homestead is to establish ownership of previously unowned property (usually but not exclusively land... The examples and perspective in this article do not represent a worldwide view. ...

Tax exemptions have a glorious history as being tools of social and economic change with unintended consequences. Unintended consequences can be either positive, in which case we get serendipity or windfalls source of problems, according to the Murphys law definitively negative: perverse effect, which is the opposite result to the one intended The Law of Unintended Consequences holds that almost all human actions have at least...

See also:

• Taxation in the United States
• Income tax in the United States
  • Internal Revenue Service
• Taxation in the United Kingdom
• Taxation in Canada

Taxation in the United States is a complex system which may involve payments to at least four different levels of government: Local government, possibly including one or more of municipal, township, district and county governments Regional entities such as school, utility, and transit districts State government Federal government // Federal taxation... The United States imposes an income tax on the taxable income of individuals, corporations, trusts, decedents estates and certain bankruptcy estates. ... Seal of the Internal Revenue Service The Internal Revenue Service (IRS) is the United States government agency that collects taxes and enforces the tax laws. ... This article is a brief overview of some aspects of UK taxes. ... Canadas taxation rate is about average among OECD countries, but it is significantly higher than the rate in the United States, the country with which Canada usually compares itself. ...

External links

• Helpful Resources on Tax Exempt Status - Links and Information

Example of Homestead Exemption

The following text describes the basic homestead exemption for the State of Florida. This text can be found at http://www.myflorida.com/dor/property/exemptions.html and contains a number of additional protected classes such as widows, people over 65, war veterans, and disabled persons. Official language(s) English Capital Tallahassee Largest city Jacksonville Area  - Total  - Width  - Length  - % water  - Latitude  - Longitude Ranked 22nd 170 451 km² 260 km 800 km 17. ...

Generally, initial application for property tax exemption must be made between January 1 and March 1 of the year for which the exemption is sought. Initial application should be made in person at the property appraiser's office.

Every person who has legal or equitable title to real property in the State of Florida and who resides on the property on January 1 and in good faith makes it his or her permanent home is eligible for a homestead exemption. If title is held by the husband alone, a wife may file for him, with his consent, and vice-versa. If property is held by the entireties, one spouse may file as agent for the other.

If filing for the first time, be prepared to answer these questions:

1. In whose name or names was the title to the dwelling recorded as of January 1?

2. What is the street address of the property?

3. How long have you been a legal resident of the State of Florida? (A Declaration of Domicile or Voter's Registration will be proof of date before January 1.)

4. Do you have a Florida license plate on your car and a Florida driver's license?

5. Were you living in the dwelling on January 1?

Further down this same page is a description of the homestead exemption for "Totally and Permanently Disabled Persons" which says:

1. Real estate used and owned as a homestead by a quadriplegic, less any portion used for commercial purposes, is exempt from taxation.

2. Real estate used and owned as a homestead, less any portion used for commercial purposes, by a paraplegic, hemiplegic, or other totally and permanently disabled person, who must use a wheelchair for mobility or who is legally blind, is exempt from taxation.

A person seeking exemption under number 2 above must meet gross income limitations. Gross income includes veterans' and social security benefits. The gross income of all persons residing in the homestead for the prior year cannot exceed $14,500. However, beginning January 1, 1991, the $14,500 limitation will be adjusted annually. The adjustment will be based on the percentage change in the average cost-of-living index of the immediate year compared with the prior year.

If filing for the first time, a certificate of total and permanent disability from two licensed doctors of this state or from the Veterans' Administration is required.