Tax & Budget

Term	Definition
Tax Policy	Policies that determine how we collect taxes.
Tax Liability	The amount of taxes owed by a taxpayer to the government before taking into account allowable tax credits.
Tax Credit	A dollar-for-dollar amount that a taxpayer claims on their tax return to reduce the income tax they owe. You can use this to reduce yourtax bill and...
Refundable Tax Credit	Allows a taxpayer to receive a refund if the credit they receive is greater than their tax liability.
Nonrefundable Tax Credit	Reduces the taxes owed -allows a taxpayer to only receive a reduction of their tax liability until it reaches zero.
Excise Tax	A tax directly levied on certain goods by a state, such as fuel, liquor, or cell phone plans. They are paid by the merchant before the goods can be...
Effective Tax Rate	The share of income a family spends on taxes. This is calculated by dividing the amount families pay in taxes by their annual household income.

Voices for Utah Children advocates and advances policies and practices that are good for all of Utah’s children.