tax-exempt
- noun
- /tæks ɪɡˈzɛmpt/
- Specialized
- Many charitable organizations benefit from their tax-exempt status, allowing them to operate without the burden of federal taxes.
- tax-exempt status
- tax-exempt organizations
- tax-exempt bonds
Examples
-
In the not-for-profit sector, the threatened loss of tax-exempt status has promoted increased community service by healthcare organizations.
Academic text (1993) -
Foundations' legal existence as a tax-exempt institution requires them to provide a public benefit.
Academic text (2016) -
Foundations as civil society actors receive tax-exempt status because they provide public benefits to solve public problems.
Academic text (2016) -
The U.S. Chamber of Commerce is a tax-exempt organization that advocates for the American business community at large.
Academic text (2017) -
Federal law placed no restrictions on the purposes for which tax-exempt bonds could be issued until 1968.
Academic text (1998) -
Take, for example, Revenue Ruling 73-105, which involved gift shop sales at a tax-exempt art museum.
Academic text (2017) -
Violating this section of the tax code can result in revocation of an organization's tax-exempt status and financial penalties.
Academic text (2011) -
The worst-case scenario for not-for-profit hospitals is the potential loss of their tax-exempt status under federal law.
Academic text (1993) -
The IRS generally classifies organizations as one or the other immediately upon conferring tax-exempt status.
Academic text (2017) -
As noted by Gale (1991), tax-exempt borrowing also provides federal credit subsidies via the tax code.
Academic text (2016)
Synonyms
A bond or note whose interest income is not taxed
Surface Forms
Morphology
tax-exempt = tax-exempt (transparent) = tax + exempt
The noun is a zero-derived use of the adjective 'tax-exempt', whose meaning is directly compositional from 'tax' + 'exempt'.
Etymology
Tax-exempt used as a noun comes from the same parts, with ex- meaning 'out' (like exit) and empt meaning 'taken', so it literally means 'taken out of tax'. That is why a tax-exempt such as a bond is a security whose income you do not pay tax on.